Adviser Update

Important changes to insurance through AMG Super

On 1 April 2020, AMG Super (Fund), will be making changes to insurance available through the Fund. These changes are the result of a comprehensive review to identify ways in which the insurance offering could be improved to benefit members.  As part of the review we have undertaken an Insurance Tender, with four of the largest insurers in Australia participating in the process.

We are pleased to announce that Hannover Life Re (Hannover) will remain the insurer of AMG Super and we look forward to continuing our long-standing relationship with the team at Hannover.

What is Changing?

We are excited to confirm that we worked with Hannover to secure overall improved premium rates and terms and conditions for the members of AMG Super.  At a time when we are seeing increase premiums right across the industry, this a great result for our members and advisers.

From 1 April 2020 members’ insurance premiums and policy terms will change.

Some of the major changes include:

  • Death and Total & Permanent Disability (TPD) premiums are reducing by an average of 23%
  • Short-term Income Protection (IP) premiums are reducing by an average of 45%
  • Improved terms and conditions such as:
    • Introduction of Life Event Cover
    • Increase in the Death & TPD insurance transfer cap to $1.5m
    • Expanded TPD definition
    • Increase in the Terminal Illness period from 12 to 24 months
    • Introduction of a 5-year benefit period for Income Protection
We also think it is important to point out a couple of scenarios where premiums and terms and condition may be less favourable:
  • Long-term Income Protection premiums (to age 65) are increasing by an average of 43%. Unfortunately, this was unavoidable and is common across the industry.
  • The insurer may apply at 3 month waiting period to a TPD claim, if the TPD claim is not a result of one of 19 common Immediate Assessment Conditions.
Please refer to the attached comparison Significant Event Notice (SEN) Flyer illustrating all changes in detail.

Applications prior to 1 April 2020
Please note that applications received prior to 1 April 2020 will receive the current AMG Super insurance premiums and policy terms. To assist in the completion of Statement of Advice documents up until this date we have attached a copy of the New Rates which will apply from 1 April 2020.

Member Communications
From 1 March 2020 impacted members will be sent a Significant Event Notice and an accompanying Flyer to explain the changes and how it effects their specific premiums. We encourage you to read these communications to understand the changes to premiums, policy terms and the automatic insurance scale. These letters will also be uploaded to member accounts under the Contact History section on AMG Online.

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PO Box 3528, Tingalpa DC, QLD 4173

1300 264 264