Increases to indexation
Products & ServiceArticle6 May 2022
With rising inflation rates in Australia, this is a timely reminder that most Zurich and OnePath’s’ advised products offer indexation increases based on CPI rate as an automatic inclusion at the client’s policy anniversary.
With CPI on the rise, clients who take no action may experience a higher percentage increase than expected especially where they have variable age-stepped premiums and will have premium also increase as they are a year older. For those with indemnity Income Protection, it may mean they are insured for more than they are eligible to claim (75% of income on older products, 70% on the current on sale products) if they accept the offer.
As acceptance of the increase is optional, we appreciate your clients may have some questions - information is available to assist you in having this conversation through your BDM.
With CPI on the rise, clients who take no action may experience a higher percentage increase than expected especially where they have variable age-stepped premiums and will have premium also increase as they are a year older. For those with indemnity Income Protection, it may mean they are insured for more than they are eligible to claim (75% of income on older products, 70% on the current on sale products) if they accept the offer.
As acceptance of the increase is optional, we appreciate your clients may have some questions - information is available to assist you in having this conversation through your BDM.