Macquarie Adviser Services has released a substantial set of enhancements to its online Macquarie FutureWise risk products range (Issue date of PDS: 18 April 2008).
FutureWise was launched into the Australian retail risk market in March 2007 as the first online risk insurance application and intelligent underwriting service.
The main launch of FutureWise last year followed an extensive pilot phase during which the product and its systems were fully tested.
With FutureWise now established as a full retail online insurance solution, the product range itself has been enhanced and updated in order to maintain its competitiveness and offer more flexible options to advisers and their clients.
Within an extensive set of changes/enhancements, one of the key initiatives has been the introduction of more flexibility into the Trauma and Income Protection products by way of the creation of a ‘Plus’ Option for Trauma and an ‘Extra Benefits’ Option for the Disability Income product.
Details of these new product options as well as key changes/enhancements are set out below in a summary provided by Macquarie Adviser Services Product Manager Insurance, Alex Threlfall, with our thanks:
Base and Plus/Extras Option for Trauma and Disability Income
Trauma
Introduction of a Trauma Plus option that covers additional conditions, as well as paying higher benefits for some conditions covered under the base Trauma contract.
Trauma Reinstatement has been removed as a built in feature and is now an optional feature.
Disability Income
Introduction of a basic version of DI with fewer benefits at a lower premium.
Claims Escalation has been removed as a built in feature and is now available as an option.
New Products/Structure
Business Expenses Insurance
- Up to $60,000 per month
- Total and partial disability
- Indemnity cover
- Accident option
Blood Borne Disease Insurance
- Provides additional cover in relation to occupationally acquired HIV, Hepatitis B and Hepatitis C
- Lump sum between $50,000 and $500,000
- Available to professions at risk of occupational infection (doctors, dentists, ambulance workers, police)
Flexible Linking
Allows Life and/or TPD to be taken within super and Trauma and/or TPD to be taken outside of super, whilst still accessing premium discounts for linked cover.
- One application and one policy fee
New options
Double TPD and Trauma Option
Allows reinstatement of the Life insurance sum insured that is reduced by a claim for TPD/Trauma after the satisfaction of a 14 day survival period:
- Premium waived for the reinstated Life sum insured
- Commission is paid on the premium that would have been otherwise payable
Business Increase Option
Allows business clients to increase the sum insured in the future by up to three times the initial sum insured in line with the increasing value of their business, without medical underwriting:
- Available on Life, TPD and Trauma Insurance
Superannuation Cover Option
Allows a higher monthly insured amount of up to 80% of income (rather than the 75% that is usually available) so that contributions can be made into superannuation during disability. Part of the monthly benefit must be paid to a nominated superannuation fund.
Definitional Improvements
TPD
- Waiver of 3 month qualifying period if the insured person suffers permanent impairment of at least 25% of whole person function and is unlikely to work again (as per applicable definition).
- Modified TPD has been introduced as a fourth TPD definition that can be selected at application, covering loss of limbs, loss of independent existence and cognitive loss.
Trauma
Definitions for the following trauma conditions have been reviewed and improved:
- Aortic surgery
- Cancer
- Early stage prostate cancer
- Coma
Trauma Reinstatement
The availability of Trauma Reinstatement after a claim for certain conditions has been improved.
- Blanket exclusion on reinstating Trauma for a group of conditions has been removed
Disability Income
- Accident option has been improved to 4 consecutive days
- Allowance for the start date of the waiting period to be shortened by up to seven days to when the insured first sees a doctor
- Cover Extension added for white collar professionals to continue cover to age 70
- Workers compensation removed as an offset for white collar professionals
General
Cover Limits
Maximum limits have been reviewed:
- For new business, TPD has been increased to $3 million and DI to $30,000
- Indexation caps (including Claims Escalation) have been removed so cover can increase beyond the new business maximum
Pricing
1E Occupation Discount
The occupation discount for occupations categorised as 1E has been increased from 22.5% to 25% for DI.
DI Pricing
DI premium rates have been revised downwards for males aged 42 and over
Stamp Duty
Stamp duty will be removed from base rates and applied on a state by state basis.
- Affects Disability Income Insurance, stand alone TPD and stand alone Trauma
- Results in a decrease for some clients and an effective increase for other clients, however Macquarie will absorb any price increase resulting from the stamp duty change until the client’s next policy renewal
Underwriting Limits
Medical Limits
The first age band has been raised to age 45, so that some medical requirements now apply only at higher ages, for example, $1 million of Life and TPD Insurance can be applied for up to age 45 with a personal statement only.
Financial Limits
New limits have been introduced for white collar professionals which are higher than the general limits, for example, Trauma can be applied for on a personal statement for levels of cover up to $2 million.
Automatic Upgrade of Existing Clients
Existing clients will benefit from the improvements to the built in benefits and features of the product(s) and options that they currently have. Any new products or options are not automatically passed on as they incur an additional premium rate and require an application to obtain.
The above details summarise the main changes included within this update, but there are additional changes that variously relate to:
- Expiry ages
- Indexation caps
- Maximum cover limits
- Conversion terms
- DI ancillary benefit enhancements
