AIA Australia Rolls Out Term Level Premiums

2

AIA Australia will offer level premiums with five, 10 and 15 year terms across a number of lump sum policies offered through its Priority Protection product range.

AIA Australia CEO, Damien Mu
AIA Australia CEO, Damien Mu

The insurer stated the level premiums are part of a new feature labelled ‘Term Level’ that will be available on Life cover and linked TPD and/or Crisis Recovery benefits, including those taken out through a superannuation vehicle.

In releasing the new premium structure, AIA Australia stated that, dependent on a client’s situation and cover chosen, term level premiums could be markedly cheaper than level premiums and most clients would benefit from cumulative premiums that are lower than cumulative stepped premiums.

Further discounts of 12.5% would apply for bundling and when AIA Vitality is attached to the product with a loyalty discount also available at the end of the initial term, where the premium will revert to a stepped amount.

“The real reasons customers were cancelling policies were due to changing needs and economic concerns…”

AIA Australia Chief Executive, Damien Mu said the term level structure was complementary to the insurer’s existing stepped, level and Optimum premium options. He also said the structure was developed in conjunction with licensees and advisers, including Synchron, so that AIA Australia had a better understanding of which clients would find value in term level premiums

“When we looked more closely at retention as part of the LIF, we found that there was a misnomer around the advisers’ role. The real reasons customers were cancelling policies were due to changing needs and economic concerns,” Mu said.

“With this in mind, we designed Term Level to help advisers to better match the premium structure to their clients’ individual life stages, whether they’re buying a house, starting a family, sending their kids to school or satisfying a particular business need,” he added.

AIA Australia has released a new PDS for super linked cover and non-super cover, as well as an Adviser Guide detailing the changes.



2 COMMENTS

  1. Damien you were on the Board of the FSC, were you not. You remember what went on around Trowbridge – the insurer members “sexed up ” the lapse figures to argue that advisers were “churning “. The FSC and individual insurers, headed by the banks, fed that rubbish to an eager and excessively ideology-driven ASIC to argue for reduced commissions, supposedly as a method of reducing the alleged “churning ”
    Now you have the front to state that “the real reasons customers were cancelling policies were due to changing needs and economic concerns ” Economic concerns is code for continually increasing premiums by insurers.
    Now you run the opposite argument to promote a new product !
    Bah humbug !!!!!

Comments are closed.