ING ups homemakers’ TPD limit
ING’s product line-up now better reflects the importance of stay-at-home parents, with an increased maximum sum insured of $1.5 million for its total and permanent disability (TPD) cover now available to homemakers.
Previously capped at $500,000, ING has boosted the total insured amount for non-working spouses because it believes such individuals’ contribution to the family generates the equivalent of a salary, and needs the same protection as that of income-generating spouses.
A number of other insurers have increased their maximum TPD sum insured in recent months, but ING believes it was the first to cater specifically to non-working spouses with the launch of OneCare last year, with this latest enhancement building on this.
According to Mark Vilo, ING’s head of marketing: “Some people mistakenly assume that if a spouse doesn’t work outside the home then that spouse doesn’t need life insurance because there’s no salary to replace.
“But if a stay-at-home mum or dad becomes permanently disabled while the children are still young or when the family has significant debt, [it] can mean the impact can be removed and the working parent can quit their job to provide care and support to their spouse.”
The change has been made in response to the Investment and Financial Services Association’s research that found chronic underinsurance in Australia at an estimated $1.37 trillion, with 60 per cent of families insufficiently covered in the event of serious illness or injury.
ING OneCare research indicates the average TPD sum insured for a home-maker is just $235,000, which it believes is a small sum considering the average Australian mortgage.
Along with the changes to homemaker TPD limits, standard TPD cover limits have been increased by $500,000 to $3 million for ‘own’ and ‘any’ occupation definitions, income protection has been increased from a maximum $20,000 per month to $30,000, and the business expense cover has been lifted from $25,000 per month to $60,000.
Underwriting medical requirements have also been relieved slightly for applicants meeting certain criteria.
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