BT Financial Group’s ’s BT Insurance (BT) has released a major update to its BT Life Protection Plans range, and has also launched a brilliant interactive tool for advisers to use with their clients, called LifeSAVER+.
New product and services initiatives and enhancements to existing features became effective from 19 October 2009 for the life insurance products offered through BT’s Wrap platform.
According to BT, this update has addressed adviser feedback about the best product solutions for advisers’ clients as well as what initiatives will lead to ‘…a faster and easier application process’.
The update has four main components:
- New features and benefits
- Enhancements to existing benefits
- Enhanced application technology
- Improved sales materials
New Features and Benefits
Loyalty Benefit: For clients holding their policy with BT for three years, and for no additional premium, clients will:
- Receive an increase in their sum insured on lump sum products by 5%
- Add a $50,000 Death Benefit to income products
BT is looking to have this new benefit lead to increased retention rates, with existing policies also becoming eligible for the Loyalty Benefit if they are still inforce three years from 19 October 2009.
Children’s Benefit: introduced in the event of an insured child’s death or a specified children’s medical event, to assist with helping a client to take time off work to care for a sick child or grieving family and/or to help pay for related medical treatment (not available under superannuation).
Living Benefits: Three new ‘living benefit’ critical conditions introduced (not available under superannuation):
- Intensive care
- Bacterial meningitis
- Meningococcal septicaemia
TPD Benefit Continuation: Intended to provide for the increasing numbers of people working past the age of 65, BT will offer to continue to pay the TPD Benefit under an Any Occupation definition to the lesser of:
- Five times annual income
- $1 million
This will apply if the insured is still working full time after age 65 in a class A occupation.
Income Protection Continuation Benefit: Provides for people working beyond age 65 (full time, class A or AA), offering a scaled down IP benefits package, including 90 day waiting period, two year benefit period and maximum monthly benefit of $20,000
Additional new features include:
- Superannuation Contribution Option: Ability to insure up to 80% of monthly earnings, previously capped at 75% (not available under superannuation)
- Addition of two new conditions eligible to be covered under the Advancement Benefit for term life and critical illness products: ’Early Stage Melanoma’ and ‘Loss of use of Single Limb’ (not available under superannuation)
Enhancements to Existing Benefits
- General Cover TPD (loss of independent existence, loss of use of limbs) can now be selected by client at time of application, along with the existing Any, Own and Home Duties definitions
- ‘Dramatic’ expansion of Interim Cover by including events caused by sickness (previously, only accident events were covered)
- Increased Funeral Advancement Benefit to max of $25,000 (previous max was $10,000, not available under superannuation)
- Increased Financial Planning Benefit to max of $5,000 (previous max was $1,500, not available under superannuation)
- Future Insurability: New business event - Loan Guarantee
- Increases to the maximum uplift on business events from $200,000 to $500,000. Overall increases has also risen from $1million to $2million for business events.
- Major Organ Transplant waiting list will now be paid as a full benefit (previously only available under the Advancement Benefit , not available under superannuation)
- Higher maximum benefits paid for ‘Carcinoma in situ of Female Organs’, ‘Prostate Cancer’ and ‘Angioplasty’ under the Advancement Benefit (not available under superannuation)
- Maximum TPD Partial Benefit increased (not available under superannuation)
- Enhanced Offsets clause, relating to eligibility for other common law payments and sick leave
- Income Protection maximum entry age limit on manual occupations increased to 59 (previously 54)
- Increase to 40 the number of events covered by the Crisis Benefit under Income Protection Plus (previously only eight events covered, not available under superannuation)
- Additional events covered under Specified Injury Benefit
BT also notes it will now pay 10% of the critical illness ‘Living Benefit’ up to $50,000 if a claim under the reinstated cover is the same as, or caused by the original medical event (previously, related events and conditions were excluded; not available under superannuation).
Enhanced Application Technology
- Application software now has the facility to split both upfront and trail commissions between two advisers, eg between practice risk specialist and the introducing financial planner
- Introduction of a common personal statement for multiple applications, ie the adviser will no longer be required to re-enter the information for a client applying for more than one policy
- Improved communication with advisers once policy application lodged, including summary of application, premium amount and eligibility for immediate cover
- New navigation menu functionality
- Introduction of underwriting decision intelligence regarding family history
- Exclusions and loadings for pastimes now available at point of submission
Improved Sales Materials
Improved sales materials from BT include the introduction of a new life insurance simulation tool named LifeSAVER+.
This interactive simulation tool is one of the major highlights of BT’s product and services update
This interactive simulation tool is one of the major highlights of BT’s product and services update. It looks at customers’ life stages and shows how insurance can help different people at different times throughout their lives. It:
- Outlines and explains the different types of insurance available, their purpose and what they do for the client
- Helps determine what level of insurance the client may need to consider
- Provides an excellent Claims Calculator that clearly demonstrates the likelihood of a client claiming, based on their personal circumstances
Once completed, the LifeSAVER+ Report Writer creates a tailored report of what has been discussed so that the client can take it away with them.
BT’s national ‘LifeCHARGE’ roadshows have been presenting these enhancements to advisers, with the final roadshow completed this week.
Click here to access new Product Disclosure Statements for:
