MLC Life Insurance has launched new income protection products that cover options to suit specific needs and budgets.
The two products – Income Assure and Income Assure Plus – allowed most customers to have the maximum sum insured allowable with premium stability and product sustainability, the firm said.
MLC said Income Assure provided an income replacement ratio of 70%, with tiering for income above $150,000, and Income Assure Plus 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 four options, advisers can choose the product and options that best meets the needs of their client,” it said.
“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.”
MLC’s chief life insurance officer, Michael Rogers, said the offering reflected contemporary needs, more sustainable premiums, and provided options to cater to specific requirements.
The new products would be be offered as part of MLC Insurance and MLC Insurance (Super) from 1 October 2021, and have been designed following 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.