Macquarie Life (Macquarie) has updated its FutureWise retail risk products series and has also introduced a raft of new features and other enhancements into the company’s wrap platform Super Protector product.
Taking effect from 15 May 2009, all enhancements and changes have been introduced with no corresponding changes to existing premium rates (but new rates sets accompany new waiting periods and other new options).
This update focuses on the ‘living insurances’, with particular emphasis on overhauling the company’s disability income insurance proposition under superannuation.
Taken from Macquarie’s change summary document for advisers, key changes/enhancements include:
FutureWise
- FutureWise range now available, through flexible linking, with SMSF FutureWise policies and Super Protector policies
- New Financial Planning Benefit: Up to $1000 payable for a financial plan following full payment of the Life, TPD or Trauma sum insured
- More favourable Life Insurance Buy Back clause, backdating the 12 month period to when valid claim form received (previously tied to date of payment of the claim)
- New Domestic Duties definition under TPD, where clients with the domestic duties definition of TPD will be assessed under the any occupation definition if the insured person has been in gainful employment for at l east 20 hours per week continuously during the six months preceding a TPD claim (also for Super Protector)
- Provision of premium discounts under Trauma insurance ,where a significant exclusion has been applied, such as cancer or cardio/stroke exclusion
- New waiting periods under Disability Income Insurance:
- 60 days
- One year
- New Involuntary Unemployment premium waiver - where the premium and policy fee is waived for the period while the insured person is involuntarily unemployed, up to a maximum of three months
- New underwriting waiver feature - clients with a FutureWise Disability Income policy with a two-year waiting period can reduce it to a one-year or 90 day waiting period without medical underwriting if salary continuance cover terminates because employment ceases
Super Protector
- Introduction of level premium options for all Super Protector policies
- Automatic upgrades will apply, where future enhancements do not increase premium rates
- Introduction of guaranteed future insurability on the occurrence of various life events such as marriage, child birth, marriage etc…
- Removal of dollar and percentage caps on Indexation and Claims Escalation
- Introduction of a life insurance buy-back, allowing the life insurance component to be reinstated 12 months after TPD claim
- The maximum modified TPD amount has been increased to $2 million
- New TPD Commutation option, where the benefit can be received as a lump sum if the insured person meets the any occupation definition of TPD and the definition of permanent incapacity
- Improved replacement ratios:
- 75% of the first $320,000
- 50% of the next $240,000
- The maximum Disability Income amount has been increased to $30,000 per month
- New waiting periods added:
- 60 days
- Two years
- New Involuntary Unemployment premium waiver (same as above)
- Enhanced Total Disability definition: The number of days of total disability required during the waiting period prior to a claim for total disability has been reduced from the whole waiting period to 5 days
- Improved, more favourable Offsets clauses
- Backdating of the waiting period which allows waiting period start date to commence up to seven days prior to first doctor’s visit (provided conditions met)
- More attractive Return to Work clause, which allows the insured person to return to work for up to six consecutive months, where Disability Income is taken with a two-year waiting period. This allows for recurrent disability claims that occur under salary continuance cover in a superannuation fund which provides a two-year benefit period
- Enhanced Recurrent Disability clause
- New day one Accident option, where requiring four consecutive days of total disability for a total disability benefit due to an accident to be payable from day one of the waiting period
- New underwriting waiver feature (same as above)
In addition to the above enhancements, Macquarie advises there have been no changes to its occupation tables and that it has introduced a new hybrid commission option on both products of 70% upfront and 25% renewal (including GST).
Advisers can access the FutureWise and Super Protector PDSs from the links above or from the riskinfo Resource Centre. The updated adviser guide can also be accessed from the Resource Centre, or by clicking the following link: Macquarie Life Adviser Guide - LifeWise and Super Protector.
