COVID-19 commitment to life insurance

TAL fully supports the FSC COVID-19 Total and Permanent Disability Industry Claims Initiative and the Commitment to Frontline Healthcare Workers.

COVID-19 Total and Permanent Disability Claims Initiative

Our commitment to customers who have had their employment impacted by COVID-19

TAL fully supports the FSC COVID-19 TPD Claims Initiative. This is designed to further support you if you have had your employment impacted as a result of the COVID-19 pandemic and you suffer an illness or injury  before 1 January 2021 that gives rise to a TPD claim. 

1. The commitment

As set out on the FSC website, life insurance companies participating in this initiative agree to ensure that if people lose their job, are stood down or have reduced working hours due to COVID-19, this will not affect their total and permanent disability (TPD) cover if they make a claim for a disability occurring between 11 March 2020 and 27 September 2020 inclusive. To provide further support during this time, TAL is pleased to be able to extend this commitment from 27 September to 1 January 2021.

2. Eligibility criteria

This initiative is designed to help people if they:

  • were working in their normal capacity on 11 March 2020,
  • have had reduced working hours or lost their job due to COVID-19 since 11 March 2020,
  • become disabled as a result of an illness or injury between 11 March 2020 and 1 January 2021 inclusive,
  • have maintained their TPD cover at the time they became totally and permanently disabled, and
  • lodge their completed claim form on or before 31 March 2021.

For people that meet the above criteria, participating life insurers will assess their claim based on their working arrangements as at 11 March 2020 (the date when COVID-19 was declared a pandemic).

This means that people can keep the cover they had based on their working arrangements before the COVID-19 pandemic declaration.

3. About TPD cover

TPD cover pays out a lump sum if a person becomes totally and permanently disabled because of illness or injury. The majority of claims for TPD are assessed on the basis of whether the person is expected to be able to ever work again in any occupation based on their education, training and experience (Working Definition). Other TPD claims are assessed on the basis of whether a person is unable to complete a number of basic daily living activities or daily working activities (ADL or ADW Definitions). For TPD cover through superannuation, the claim is assessed on a definition which is linked to the person’s recent working arrangements. 

This industry initiative preserves that if the person would have been assessed under the Working Definition if they had suffered a disability on 11 March 2020, then if they have had reduced working hours or lost their job due to COVID-19 since 11 March 2020 and lodge a claim for a disability occurring between 11 March 2020 and 1 January 2021, the Working Definition (rather than the ADL or ADW Definition) will be used to assess their TPD Claim.

As at the end of 2018 there were over 7.5 million* Australians with TPD through their group superannuation policy and over 25,000 TPD claims were lodged in 2019.

*Based on APRA data to 31 December 2018 (12 million accounts with TPD) and 2018 ATO data on multiple accounts (1.57 accounts per Australian)

 


COVID-19 Commitment to frontline healthcare workers

We’re committed to ensuring health workers can access life insurance cover.

The life insurance industry has a critical role to play in supporting Australians at this important time. As a leader in the life insurance industry TAL intends to play its part to support our customers and the community when they need us most. We are grateful for all the doctors, nurses, medical practitioners, along with the healthcare workers who support them, such as police, pharmacists, paramedics and age care workers, who are on the frontline fighting the COVID-19 pandemic.

We are pleased to have developed and supported this FSC initiative along with our life insurance colleagues to protect our frontline health workers. This commitment on behalf of participating FSC life insurance member companies is to ensure that frontline healthcare workers are not prevented from obtaining life insurance cover purely through exposure, or potential exposure, to coronavirus.

1. The commitment

Life insurance companies participating in this commitment agree as follows:

For relevant healthcare workers, exposure or potential exposure to coronavirus will not of itself be used to:

  • decline an application for cover, or
  • charge a higher premium, or
  • apply a COVID-19 pandemic risk exclusion to any of the benefits offered,

subject to the following:

  • The agreement applies to new underwritten applications for individual life insurance benefits up to the financial limits below for relevant healthcare workers.
  • The normal underwriting process and rules will apply to individuals for health conditions unrelated to coronavirus.
  • Applicants who have tested positive for COVID-19, or who are waiting for a test result, will not be immediately eligible for cover.

2. Relevant Healthcare Workers

Relevant healthcare workers includes, but is not limited to, all the following people working in any capacity in Australia, in any of the following:

  • Doctors, nurses, cleaners and all hospital workers
  • Ambulance workers and paramedics
  • People working at a GP Surgery or Clinic
  • Workers at a COVID-19 testing site
  • Allied healthcare workers people providing mental healthcare services
  • Workers developing a COVID-19 vaccine or treatment
  • Pharmacists
  • Police
  • Age Care workers
  • Volunteers helping to support people with COVID-19

3. Financial Limits

The Commitment applies to the total amounts of cover the applicant would have, including both the cover being applied for and any existing individual and group insurance cover with all life insurers in aggregate, up to the following amounts:

  • $750,000 of lump sum death cover.
  • $500,000 of total permanent disability cover (TPD).
  • $200,000 of trauma and/or critical illness cover.
  • $4,000 a month in total of any combination of income protection, salary continuance or business expenses cover. 

Nothing in this Commitment prevents any life insurer from providing additional coverage in excess of the above.

4. Duration of the Commitment

The Commitment started on 6 April 2020 and was reviewed on 1 July 2020. It has been extended from 27 September 2020 to 1 January 2021.

 

Content last updated: 27 July 2020.

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