MLC Life Insurance (MLC) has announced it will launch several income protection products to provide customers with more ways to protect themselves from illness and injury.
According to MLC's research, customers and advisers value price and income replacement ratios well above all other features. It also found that customers would like greater flexibility of the conditions included in their policy. Meanwhile, advisers shared they wanted products with greater certainty of future premiums, underpinned by more options.
The new line, comprising Income Assure and Income Assure+, provides income protection insurance with various cover options to suit specific needs and budgets and make it easier for advisers to help their clients.
“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,” said Michael Rogers, the chief life insurance officer at MLC Life Insurance. “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.”
The new products also enable 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%, with tiering for income above $150,000. Meanwhile, Income Assure+ delivers 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 options that best meet their clients' needs. 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.
“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,” Rogers said.
MLC will offer the new products as part of MLC Insurance and MLC Insurance (Super) from October 01, 2021. In addition, it will host a series of webinars beginning on October 07 to help financial advisers learn about the new products.
