TOWER Australia has released a series of product and underwriting initiatives in its recent Accelerated Protection PDS update, effective from 28 April 2010.
The insurer advises that the product and underwriting enhancements were made as a direct result of feedback it has received from advisers since the launch of its new Accelerated Protection platform in August last year.
Key enhancements include:
Income Protection & Business Expenses
- The ‘duties’ clause in TOWER’s Income Protection Standard product has been redefined as ‘… one income producing duty’, replacing ‘… 80% reduction in income producing duties’ (also applies to the Total Disability definition in the Business Expenses contract)
- Capability clause (ability to work) amended to make it clear it is not used to reduce the partial disability benefit paid
- New Child’s Critical Illness Benefit (Premier product) – if the client has a child that suffers a listed critical illness event, an additional lump sum will be paid (3 x benefit, up to $20,000)
- The Scheduled Injury Benefit is now a built-in benefit in both the Standard and Premier contracts (previously only Premier)
Lump Sum Products
- Premium Freeze Benefit – reduction of the minimum reduced to 30 from which the benefit can be activated (previously 45)
- Business Insurance Option – the forward underwriting option will cover the full sum insured for sickness and injury (previously an ‘accident only’ restriction applied)
- Advanced Payment Benefit – automatic amount payable has increased to 10% of the sum insured, up to $25,000 (previous cap was $10,000)
- Improved Critical Illness definitions for Blindness, Carcinoma in Situ and Cancer
- Loss of one single limb now provides a full benefit (this was only a partial payment under Premier Critical Illness, but is now a full payment under both Standard and Premier)
All product changes will apply with no increase in premiums.
Underwriting
- 23 changes made to the TOWER occupation list include description updates, new occupations and some rating changes. Refer to TOWER’s Accelerated Protection Adviser Guide for details of these changes.
- Hazardous duties question – the phrase “lift or move objects weighing more than 15kg”, has been removed. This is intended to limit unnecessary referrals to underwriting ensuring a faster application process.
- ‘Other medication and medical tests’ question has been split into two new questions that refer to:
- medication taken in the previous two years
- medical tests conducted at any time in the past – including medical tests that may have been conducted longer than two years ago
Product Closure
In order to simplify its market offering, TOWER is closing its TOWER Protection Policy to new business on 30 June 2010. The company’s intention is to focus on its ‘flagship’ product, Accelerated Protection.
