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TPD coverage to continue in 2020
Frontline health workers and those employees who have had their work negatively impacted as a result of COVID-19 can breathe easy knowing their life insurance coverage will remain in place for the rest of 2020.
TPD coverage to continue in 2020
Frontline health workers and those employees who have had their work negatively impacted as a result of COVID-19 can breathe easy knowing their life insurance coverage will remain in place for the rest of 2020.
The Financial Services Council has revealed an extension to two initiatives it put in place early in the COVID-19-driven downturn.
The first was a frontline healthcare worker initiative that ensured such workers would not be prevented from obtaining life insurance cover purely because of their exposure or potential exposure to coronavirus through the “crucial work they are doing on the frontline”.
The TPD claims initiative ensures anyone who has lost their job, been stood down or has had their hours reduced due to COVID-19 will not lose their total and permanent disability (TPD) cover.
The newly announced extension follows the Financial Services Council’s announcement back in May that workers who had lost their jobs, been stood down or are working less hours as a result of COVID-19 wouldn’t be negatively impacted by changes to TPD cover.
nestegg had also reported that life insurance coverage couldn’t discriminate against frontline workers fighting COVID-19.
Originally, the initiative aligned with the JobKeeper payment scheme’s final date – up until 27 December 2020.
It will now be extended through to the end of 2020, with FSC CEO Sally Loane explaining that the initiatives aims “to ease any concerns Australians may have about their life insurance cover during uncertain times”.
“What this means is that participating life insurers will have provided additional support to the community right through to the end of 2020,” she said.
“If anyone is unsure about what cover they have, contact your superannuation trustee, life insurer or financial adviser.”
So, what does it all mean?
The initiative applies to existing life insurance cover. It will be applicable to you, and be able to help you, if:
- You were working in your normal capacity on 11 March 2020.
- You have had reduced working hours or lost your job due to COVID-19 since 11 March 2020.
- You have become disabled as a result of an illness or injury between 1 January 2020 and11 March 2020.
- You have maintained your TPD cover at the time you became totally and permanently disabled.
- You lodge a completed claim form on or before 31 March 2021.
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