June 6, 2017
AMP has announced a number of enhancements to its Elevate product including using superannuation to pay for income protection plans and allowing policy holders to buy back into a life policy up to a year after a claim.
Linked IP Cover
The insurer stated that standard income protection plans within super can now be linked to plans held outside super with customers able to take agreed value income insurance and pay most of the premium from their super account.
This is currently available for PremierLink IP policies which offer splitting of the Agreed Value IP optional benefit as an Ordinary policy, alongside the AMP Elevate Indemnity Income Insurance plan, under superannuation and SMSFs.
The new version of this, called StandardLink IP – Agreed Value, has been created and is equivalent to the agreed value Income Insurance plan where the Agreed Value component sits outside super and the Income Insurance Super/SMSF plan sits within a super fund.
Standalone TPD Cover
AMP has also introduced standalone TPD cover under superannuation and SMSF ownership where the TPD sum insured is higher than the life insurance sum insured through super.
This has been achieved through the creation of a stand-alone TPD product for Super and SMSFs which incorporates a $10,000 death benefit and where the excess TPD over life cover will treated as a separate stand-alone TPD plan.
Additionally, the insurer has also added an inbuilt ‘buy back’ feature allowing customers to reinstate linked life insurance cover 12 months after a TPD claim without providing additional medical information.
The changes will be incorporated into a revised and simplified Product Disclosure Statement which will also include a single policy document, reduced from the previous six documents previously in use.
AMP Director Insurance Proposition, Greg Johnson, said the enhancements, which are available for new applications from 10 June 2017, were designed to make Elevate more flexible and competitive, and to help customers keep their cover contemporary while assisting advisers to grow their risk business.