APRA clarifies Agreed Value Income Protection Cut-off

AFA News 31 March 2020. In response to questions from members on whether the ban on agreed value Income Protection will still commence on 1 April 2020 as initially proposed, in light of current events, we have sought clarification from APRA and received confirmation that, given the current circumstances, insurers may accept new applications signed by the client up to 14  April 2020, provided the Statement of Advice was presented prior to 31 March 2020. As this information from APRA was only received on Friday 27 March 2020, and is not mandatory for the insurers, the treatment may vary depending on the Life Company, so we recommend you check with the insurer directly. There is no change to the date by which the insurer has to finalise the application being 30 June 2020