29 September 2021
MLC Life Insurance is launching a new range of income protection products offering more choice for customers seeking protection from illness and injury.
Called Income Assure and Income Assure+, the products provide income protection insurance with a range of cover options to suit specific needs and budgets, making it easier for advisers to help clients protect what’s important to them.
The new products will be offered as part of MLC Insurance and MLC Insurance (Super) from 1 October 2021, and have been designed following extensive customer, adviser and licensee research and analysis.
This research revealed:
- 83% of retail insurance customers earn $150,000 or less per annum, with income replacement needs highest during the early stages of a claim.
- 89% of retail insurance customers were able to return to full health within the first two years of making a claim.
- Both customers and advisers value price and income replacement ratios, well above all other features.
- Advisers wanted us to introduce products with greater certainty of future premiums, underpinned by more choice and options.
- Customers would like greater flexibility of the conditions included in their policy.
Michael Rogers, Chief Life Insurance Officer, MLC Life Insurance, said:
“We’re really excited to bring these new products to market. Through our comprehensive research, we’ve designed products that go further than just meeting regulatory obligations. We believe they offer clients income protection cover that reflects contemporary needs, offering more sustainable premiums, while providing options to cater to specific requirements.
“Underpinned by our ambition to be Australia’s leading and most trusted life insurer, we went back to the core principle of how we could meet customer needs. We looked at the principles of indemnity, and insuring definable, calculable, and meaningful losses caused by accident, injury, or illness. We believe these products strike the right balance between benefits and affordability.”
Income Assure and Income Assure+ enables most customers to have the maximum sum insured allowable, underpinned with premium stability and product sustainability. Income Assure provides an income replacement ratio of 70 per cent, with tiering for income above $150,000, and Income Assure+ provides a ratio of up to 90% for six months post claim if customers select the ‘booster’ option.
By providing two levels of cover, each with 4 options, advisers can choose the product and options that best meets the needs of their client. Examples of the choice provided includes how cover is assessed after two years on claim, if partial disability payments are required without the customer ever being totally disabled, or the flexibility their clients require if they return to work during the waiting period. Michael Rogers concluded:
“Our research shows that customers value Income Protection as a product, but the sobering reality is that the traditional offers in the market have not been sustainable. This needs to change.
“With the launch of Income Assure and Income Assure+, we recognise that customer needs and adviser preferences are evolving, and this is our opportunity to offer more tailored solutions through greater choice and flexibility.”
MLC Life Insurance will host a series of webinars to help financial advisers learn about the new products from Thursday 7 October. Register here for a webinar.