BT Life has unveiled its latest underwriting and product enhancements for its BT Life Protection Plans and Westpac Protection Plans product ranges, effective from 27 April 2009.
Presented to advisers and their clients with the accompanying theme of ‘Cutting through the Red Tape’, this update offers enhancements in three specific areas:
- Underwriting initiatives
- Enhanced online features
- New personal statements and other documents
Underwriting Initiatives
Key underwriting changes/initiatives include:
Increasing the Mandatory Medical Limits, Reducing the Medicals Required
- For applicants less than 45 years of age, no mandatory medical tests for Term Life and TPD insurance cover up to $2.5 million and for Living Insurance cover to $1 million
- Improved non-medical limits for Term Life, TPD and Living insurance cover for all ages
- Introduction of Mammograms and Stress Echocardiograms for large sum insured applications
- Introduction of specific Living Insurance medical requirements for cover above $1 million
Extension of Financial Limits
Applicants up to age 45 next birthday will not be required to provide additional financial information when applying for:
- Term Life benefit up to $2.5 million (previously capped at $1.5 million)
- TPD benefit up to $2.5 million (previously capped at $1.5 million)
- Living insurance benefit up to $1.5 million
Expanding and Improving Occupation Categories
Introduction of new occupation classifications for TPD and IP in order to offer cover for more clients:
- The ‘General’ definition for TPD (activities of daily living, significant cognitive impairment etc…) has been offered to some occupations which were previously uninsurable
- A new ‘E’ occupational category for IP (limited to 2 or 5 year benefit periods) has now been introduced to cover previously uninsurable occupations (indemnity contracts only)
Simplifying Takeover Terms
- Broadening of the financial limits on takeover terms, intended to make transferring existing external business as easy and straightforward as possible. It may now be possible to takeover life insurance business for clients up to the following sum insured amounts:
- Term Life - to age 60 up to $3 million
- TPD - to age 55 up to $2 million, and up to $1 million between ages 56 to 60
- Living Insurance - to age 60 up to $1 million
- Introduction of takeover applications for IP, subject to a maximum benefit of $10,000 per month
Increasing Maximum Benefit Limits
- Maximum benefit limits for Home Duties definition increased to $2 million for Term Life, $1.5 million for TPD and $750,000 for Living (Trauma) Insurance
- Maximum IP benefit is now 75% of first $320,000 salary and $20,000 plus 50% of salary in excess of $320,000 (up to $560,000)
- Maximum TPD benefit increased to $5 million (’Activities of Daily Living’ clause to apply for sum insured component in excess of $3 million)
Enhanced Online Features
Two key enhancements to BT Life’s online DeskTop functionality are:
Introduction of Reflex (Logical) Questions
Insurance functionality on the BT adviser DeskTop now includes reflex questions that ask clients for additional information. Intended to make getting on-the-spot cover easier for more clients, the sections that have had these reflex questions applied to them include:
- Travel and Residency
- Insurance and Claims Details
- Smoking
- Alcohol
- Detailed Medical History (including mini questionnaires)
Introduction of a New Navigation Menu
Various functionality enhancements tothe insurance component of BT Life’s DeskTop package, including:
- Greater ease of movement forward and backward between different areas/screens
- Enhanced ‘Save’ function
- ‘Completed’ sections easier to identify
- Easier movement between personal statement and policy application
New Personal Statement/Other Forms
BT Life’s new-look Personal Statements and other documents and forms have been developed to improve the speed and quality of the application. These include:
- Short form application
- Declaration of continued good health
- Medical, financial and other questionnaires
The company is in the process of completing a series of national roadshow presentations to Westpac Bank and external financial advisers, where its changes are intended to have the following meaning for advisers:
- Highlighting BT Life’s commitment to continual refinement of its underwriting processes
- Demonstrating the company’s ongoing response to adviser and client feedback
- Strengthening of BT Life’s position as a life insurance market leader
- Reduced underwriting turnaround times
- Significant increase to the number of policies being offered immediate cover
Advisers wanting further details can access a copy of BT Life’s Adviser Enhancements Guide April 2009.
