Reminder - Agreed Value ceasing sale on income protection

With APRAs intervention into the individual disability income insurance (DII) market fast approaching commencement, we at AIA Australia (AIAA) have been communicating with you the changes and how they impact you and your AIAA clients.

As a result of the upcoming changes, we’d like to remind you of the key dates, including scenarios that AIAA have implemented.

In addition to the key dates, it’s important to understand that our income protection (IP) Essentials and Incorporated Business Expenses benefit products are impacted as they include the Agreed Value component within the structure. As such, these products will be closed to new business with acceptance of any pipeline applications, subject to the below key dates.

Scenario 1

Your client applies for an IP Agreed Value benefit. They submit their quote, application and all signed and dated documents by 31 March 2020, via eApp to AIAA. Provided their policy goes in force by the outstanding requirements date of 30 June 2020, the IP Agreed Value benefit can be issued.

Scenario 2

Your client submits a paper based application for an IP Agreed Value benefit. Their quote and application must be signed and dated on or before 31 March 2020, and received by AIAA no later than 30 April 2020. Provided their policy goes in force by the outstanding requirements date of 30 June 2020, the IP Agreed Value benefit can be issued.

Scenario 3

Your client submits the application as per one of the above scenarios, however does not provide all the outstanding requirements such as a signed and dated direct debit form by 30 June 2020. The policy therefore is still not in force and your client is no longer eligible for an IP Agreed Value benefit. If the wish to still apply for an IP benefit, you will then need to complete a new quote with either an IP Indemnity benefit or Extended Indemnity benefit. 

For more information, contact your CDM or CDA to find out more. Alternatively, you can download the FAQs here and take note of the below key dates.