Speaking at a media briefing last week, CommInsure’s Jeffrey Scott, executive manager, insurance tech and business delivery, said new insurance held inside super from July 1 this year will need to align with amendments to the SIS Act.
Mr Scott said there have been significant changes implemented with the definition of total and permanent disability (TPD).
Following these changes, two of CommInsure’s products will be changing – ‘Total Care Plan Super’ and ‘Total Care Plan/Income Care Range’ policies issued to SMSFs.
For example, in reference to ‘Total Care Plan Super’, the CommInsure definition of ‘any occupation’ TPD presently allows for the insured to be treated as TPD even if they are able to generate an income of up to 25 per cent of their pre-disability earnings.
“This is currently inconsistent with the SIS definition of ‘permanent incapacity’ and we have removed it from the CommInsure definition,” CommInsure stated.
CommInsure is also launching a new insurance product for SMSFs, which the bank says is in response to a “growing market need”.
“We hope the Commonwealth Bank advisers will embrace it, but the independent financial advisers out there in the marketplace will also be selling this,” Mr Scott said.
“The independent financial advisers make up the majority of the advisers that I’ve been talking to,” he added.
CommInsure has heralded these changes to insurance inside super as a chance for advisers to revisit their clients’ insurance needs.
“Most of the good advisers right now, that’s exactly what they’re doing. They’re engaging with their clients,” Mr Scott said.
