Life insurance news and advice

Life’s too precious to take shortcuts when it comes to life insurance, so taking the time to find the right policy is an absolute must. For many Australians though, comparing life insurance can be confusing and it's often difficult to know how to assess one policy against another or what levels of cover you really need.

It’s understandable if you’ve been looking into income protection insurance lately. This year has been a tough year for many Australians financially and knowing that your income is protected should you suffer from sickness or injury, at least provides some peace of mind.

The Australian Prudential Regulation Authority (APRA) has announced it will recommence reforms of individual disability income insurance (IDII).The intervention into IDII, otherwise known as income protection insurance, began in December 2019 but was put on hold in response to the global pandemic. 

Longstanding superannuation fund Equip Super will change how it manages life insurance from 1 October, 2020.Equip chief member officer, Tania Cumming said the changes will focus on increased flexibility and member input.“In reviewing insurance products and talking to our members, they were clear that they wanted insurance that responded to their lifestyle needs. And critically, they wanted us to deliver these options to them rather than them having to construct it themselves,” Cumming said.While some members will see their life insurance premiums increase, Cumming said the changes are designed to meet long-term needs.“Key to getting this right is working to ensure that our insurance products align to members’ lifestyles and financial aspirations as well as offering long-term value, rather than short-term changes. It is important that we take a balanced approach that is both affordable and sustainable.”

As pandemic conditions and restrictions continue to develop across the country, the mental well-being of impacted Australians is becoming a top concern.This has become more evident in national discussions since early August, when Victoria’s lockdown was reinstated – with even tighter restrictions for metropolitan Melbourne – after a sustained spike in Coronavirus cases.In an ABC News Breakfast interview this week, deputy chief medical officer professor Michael Kidd recognised the mental and emotional impact of prolonged isolation.“Please look after each other, please look after your mental health. If you are feeling particularly depressed or anxious as a result of the restrictions which are in place, please reach out to Lifeline, Beyond Blue, the other resources,” he said.

Life insurance winners announced

According to a recently released survey by KPMG and the Financial Services Council, life insurance claims related to mental health increased by a whopping 53% between 2013 and 2018. This new research is very timely, given that a large number of people across the country have just spent months inside due to the Coronavirus pandemic.

In September of last year, the government passed legislation to make life insurance an opt-in inclusion for super funds holding less than $6,000 and for new members under 25. With the economic impacts of COVID-19 dominating financial news in the last few months, you may not have realised these changes came into effect on April 1. 

There’s been a fair bit of news to digest of late, so we don’t blame you if you missed a recent change in the life insurance industry. 

With the Coronavirus (COVID-19) declared a global pandemic by the World Health Organisation and the situation evolving daily in Australia, now is the time to do some important prep work.