Aviva has released further details regarding its 2 April Protectionfirst update.
The overall emphasis of this update focuses on tailoring solutions to reflect the present economic environment. That is, the emphasis is on ease of writing new business as well as enhancing relevant features for existing clients.
One of the key initiatives not reported in the previous update is:
Financial Hardship Benefit
Introduction of a financial hardship initiative that is designed, according to Aviva, ”…to enable policyholders to survive the financial ups and downs for the year ahead by reducing their insurance cover for a maximum of 12 months.”
Aviva says that once the 12 month period has expired, policyholders will have the opportunity to automatically reinstate their policy to the original sum insured, without the need to complete a declaration of health.
Interestingly, Aviva makes the point that this feature will not be promoted as an active marketing campaign to clients directly, but will be made available as a tool to assist advisers seeking to advise clients and retain business in these uncertain times.
The Financial Hardship Benefit is available immediately for all in force policy holders, and is in addition to the waiver of premium extra cost benefit in the event of involuntary unemployment (on lump sum contracts, previously reported).
Other changes include:
- Introduction of three new critical illness events:
- Diabetes
- Intensive Care
- Meningitis and/or Meningococcal Disease
- Introduction of seven new child trauma events:
- Benign Intracranial Tumour
- Coma
- Deafness
- Intensive Care
- Loss of Limbs and/or Sight
- Loss of Speech
- Meningitis and/or Meningococcal Disease
- The Major Organ Transplant definition has been extended to include small bowel
- The Severe Rheumatoid Arthritis definition has removed the 50 year old age restriction
Simplified medical and financial underwriting requirements have been developed and are included in the following Quick Reference Guide.
Aviva cites the example of a person aged 50 applying for $1.5M in Life and TPD cover. This person is now only required to complete a Personal Statement. Previously a RapidCheck (height, weight, blood pressure etc…) and blood tests were also a requirement for this client.
The company also points out these initiatives have been developed without any changes to its premium rates.
The Supplementary PDS, along with an updated underwriting guide and policy wording, will be available in the riskinfo Resource Centre from 2 April.
