ANZ Wealth Launches Severity-Based Trauma Option

A new severity-based trauma option and income protection cover are the latest product updates released by ANZ Wealth this week.

The newly-released OneCare PDS - new trauma and IP options...

The newly-released OneCare PDS – new trauma and IP options…

Incorporated as new options within its flagship OneCare product range, this updated offering has been designed, according the insurer, to offer consumers more cost-effetive and accessible life insurance options.

Severity Trauma Cover

‘Severity Trauma’ becomes the third main trauama insurance product option within the OneCare range, joining the existing Comprehensive and Premier options. The tiered benefit structure is designed to more closely align with the financial impact of the event on the client.

Key elements within the new offer include:

  • Insured events that are based on the OneCare Comprehensive offer, where minor events have been removed and the major conditions have been tiered according to severity
  • Availability of a three-tiered payment structure for those insured events that can be split into tiers
    • The three benefit tiers pay 10%, 50% or 100% of the insured benefit, subject to the severity of the event
  • Ability for the client to take the Severity Trauma option in addition to Comprehensive and Premium cover, and also available under OneCare SuperLink
  • Introduction of a new Pregnancy Premium Waiver benefit
  • Life Cover buy back and Trauma Cover reinstatement options are not available

Premium rates for Severity Trauma are offered at a discount against both the Comprehensive and Premier options.

Other trauma product changes include:

  • Introduction of a new ‘medical advances’ definition
  • Changes to 42 trauma definitions to align with the Life Insurance Code of Practice
  • Other updates to various trauma definitions

Income Secure Essentials

Offered as a non-super cover option for all occupation categories, ANZ Wealth notes the new Income Secure Essentials option is designed to reward customers undertaking rehabilitation to facilitate their return to work.

In addition to offering rehabilitation and retraining expenses, this option also offers the following benefits:

  • Rehabilitation and retraining incentive benefit (one extra month’s benefit)
  • Pregnancy premium waiver (waived for six months)
  • Severity boster benefit, where the monthly benefit increases to 100% of pre-claim earnings if the claimant is unable to perform two out of five activities of daily living
  • Return to health benefit (pays an aditional 10% when attending an approved rehabilitation or retraining program)

A ten-year benefit period is also offered under Income Secure Essentials which offers premium discounts of 15% – 20% compared against the OneCare Standard contract, depending on the benefit period selected.

Commenting on the introduction of a severity-based trauma option, ANZ Wealth’s Head of Life Insurance, Gerard Kerr, said, “…a mismatch can arise between the financial support a customer receives and what they really need – particularly for medical conditions that can be diagnosed earlier and managed with less invasive, modern treatments than in the past.” Kerr added that this mismatch was pushing up premiums and making cover less affordable for many Australians, which is why he said a tiered benefit structure increasingly makes sense to some customers.

Click here to access the new OneCare Product Disclosure Statement, which took effect from 19 August 2017.




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