We’ve made some important product changes to Encompass Protection that may apply to your clients’ policies. These changes are effective from 26 September 2025 and will be reflected in the PDS dated 26 September 2025.
The key changes are outlined below.
Life Cover
Maximum Sum Insured
The maximum sum insured for Life Cover has increased to $7,000,000. This means your client can increase their sum insured up to this amount, subject to underwriting criteria.
Specific Accidental Injury Benefit
We’ve clarified that, in order to receive a payment under this benefit, the accidental loss must be total and permanent. This update will automatically be applied to your client’s Life Cover from the effective date.
TPD Cover
Definition updates
We’ve clarified and updated key definitions across all TPD Cover types (any occupation, home duties, own occupation, and super TPD) to provide enhanced clarity. Changes include:
- Normal Physical Domestic Duties
- Own occupation – clarifies which occupation a claim is assessed against if your client has changed jobs
- Permanent Incapacity – trustee may require opinions from two doctors before paying benefits
- Whole person impairment (replacing “whole person function”)
Criminal Act and Incarceration Exclusion
A new criminal act exclusion has been added for new customers only. This will not apply to existing policyholders.
Critical Illness Cover
Maximum Sum Insured
The maximum sum insured has increased to $2,000,000. Clients can increase their sum insured up to this amount, subject to underwriting criteria.
Medical Definition Upgrades
The following definitions have been upgraded to reflect severity or medical specification:
- Bacterial meningitis
- Benign brain or spinal cord tumour
- Coronary artery angioplasty
- Encephalitis
- Major brain injury
- Major organ or bone marrow transplant
- Meningococcal Septicaemia
- Severe cognitive impairment
Medical Definition Updates
Certain medical definitions have been updated, including:
- Aplastic anaemia, blindness, cancer (excluding specified early stage cancers)
- Early stage prostate cancer (for existing customers only)
- Heart attack with evidence of heart muscle damage
- Orchidectomy for germ cell neoplasia in situ of the testicle
- Other conditions of specified severity
Note: “Early stage prostate cancer – of specified severity” will be removed as a partial critical illness event from the effective date.
Whole Person Impairment
This replaces the previous “whole person function” terminology.
Income Protection Cover
Maximum Sum Insured
The maximum sum insured has increased for clients earning over $480,000 per year. The new maximum is the lesser of $30,000 per month and:
- 70% of the first $20,000 per month of earnings
- 50% of any earnings between $20,001–$40,000 per month
- 20% of any earnings above $40,000 per month
The Income Booster Option is no longer included in this calculation.
Superannuation Contribution Option
We’ve clarified that “earnings” refers to the earnings your client can insure.
Recurring Disability
Previously called “Recurrent Disability,” this feature has been renamed and clarified regarding when it applies.
All Cover Types
Name Change
We’ve changed our name from MLC Limited to Nippon Life Insurance Australia and New Zealand Limited, trading as Acenda. This will be reflected in the Commission Agreement and Distribution Agreement.
Exclusions
We’ve clarified that pre-existing condition exclusions apply to conditions your client was aware of, or that a reasonable person in their circumstances could have been expected to be aware of.
Policy Reinstatement
Clients now have 30 days to reinstate a policy cancelled due to non-payment of premiums.
Existing customers
All existing policyholders will have the relevant changes applied to their policies. These updates apply to future claims only and do not apply to events or conditions before 26 September 2025.
Applications in transition
Applications submitted before 26 September 2025 but commencing on or after this date will be based on the PDS dated 16 May 2025 but will be updated with the relevant changes above.
New PDS, Adviser Guide and Statement of Advice
An updated Encompass Protection PDS, Adviser Guide, and SoA dated 26 September 2025 will be available for download on our website from this date.