Agreed Value Income Protection

To Be Abolished

If you have been putting off getting Income Protection, don’t delay, get it before April.

As of 31st March 2020, life insurers will no longer be able to offer agreed value income protection to NEW applicants.


  • An agreed value policy is where the level of cover is based on your income at the time of application.

  • The alternative (called an indemnity policy), is where the level of cover is based on your income at the time of making a claim.


This means that if your income decreases prior to making a claim you may not get paid your full benefit! Further, having to prove your income at the time of a claim can be extremely stressful – particularly if you are self-employed!


The good news is that all policies existing BEFORE the cut-off date will retain their Agreed Value status. So, if you have agreed value cover already OR you get it in place before that date, your policy will have an Agreed Value.


This is all part of a mandated review from the regulator (APRA) being staged out between now and June 30 2021 – which may also include other conditions such as

  • Reducing the maximum benefit period from age 65 years old, down to just 5 years.

  • Removing the guarantee of cover down to a 5 year period, meaning you’d have to reapply (without medicals) every 5 years for your income insurance.


You can read more about the changes from APRA

If you have income protection cover already

  1. Find out if your income protection is agreed value or indemnity, and assess whether it is important to you that your cover is locked in.

  2. Speak to your financial planner (or Lime Financial Planning) about reviewing your cover.

If you don’t have income protection

Speak to your financial planner (or Lime Financial Planning) as to whether income protection is right for you.

Call Now 03 9801 8822

Our Holistic Approach


Our approach does not just stop at your life insurance. 

We take an overall look at your situation taking into account not only your risks, but what you currently have in place to cover yourself - and give you options to ensure you are not over-insured.

When it comes to the insurance products themselves, we are experts in the 'nitty gritty' definitions and differences between policies to ensure that if you ever need to make a claim, the process is smooth so you can concentrate on your recovery. 


We also look at how that money would be handled and will work with you and a solicitor to ensure you have appropriate estate planning in place. 

We give advice on

  • Life Insurance

  • Total and Permanent disability insurance

  • Income Protection

  • Trauma Insurance

  • Business Insurance

The Process

The First Step

The first step can be daunting - but just give us a call!

We offer a free 30 minute phone consultation to see if we are the right fit, and if we can help you. 


Before you commit to a financial plan we will take the time to fully understand your situation, your dreams and your challenges - and will give you an idea of your options and any costs involved, so you can make an informed decision. 


The advice stage provides you with a step by step plan to create a fulfilling retirement, maximising your financial aspects. 


Our process does not stop at just providing advice. We will work with you to implement your plan and get you on the road to your dream retirement. 

Interested in taking the next step?