Asteron has launched a major industry innovation that offers a premium discount of up to 20% for healthy lives.
The introduction of premium discounts for healthy lives is one of a number of key initiatives launched by Asteron in its latest Lifeguard product upgrade, effective from 24 May 2010.
the real innovation … is in effectively creating a third category of insured life
But while the headlines are all about a 20% premium discount opportunity, the real innovation that Asteron has introduced into the Australian life insurance market is in effectively creating a third category of insured life, which Asteron refers to as a ‘Healthy Life’. This new category will sit alongside standard and non-standard insured lives.
In launching this innovation, Asteron is creating another level of engagement with the client. Whereas currently, a client proposes for cover and is accepted at either standard or non-standard rates, eligible clients now have the opportunity to take advantage of their good health by way of significant premium discounts.
Commencing at 20%, the discount will reduce by 1% each year to a plateau of 10% for the term of the policy. But eligible clients can re-apply for the full discount by being re-tested over time. If they continue to qualify for their ‘healthy’ status, the premium discount process re-sets at 20%.
Those clients wanting to apply for the Healthy Plus Option must undergo additional underwriting, but Asteron stresses that if any risk factors are uncovered during the additional underwriting, the insurer will stand by its original underwriting decision.
Underwriting eligibility criteria for clients wanting to apply for the Healthy Plus Option (must be between 30 and 50 years, stepped premiums greater than $250,000) include:
- Have not smoked for at least 5 years
- Medical history and diagnostics such as weight, body mass index, blood pressure and cholesterol
- Family history
- Driving record
- Lifestyle and occupational hazards
- No exclusions or loadings are applicable to the current applications or any other inforce policies
Asteron’s Healthy Plus Option is linked to the insurer’s Asteron Life! health and wellbeing program, launched last year, in which clients and their advisers can participate.
Other key initiatives launched by Asteron, detailed in its 24 May 2010 PDS, and including three ‘market firsts’, include:
- Loyalty funeral benefit of $15,000 for eligible policy holders, irrespective of whether policy is in force at time of death, as long as policy has been held for at least ten years (for sums insured greater than $250,000) – Market first
- Introduction of Own Occupation TPD definition to cover part time professionals. Applies for part time professionals working more than 20 hours per week, capped at $1 million – Market first.
- Partial Recovery Reinstatement Option – allows clients to re-instate the sum insured reduced after a partial trauma claim. Reinstatement can occur after 12 months – Market first.
- Maximum cover for Any or Own Occupation TPD increased to $5 million
- Commencement of the 90-day exclusion period on policy applications from the date the application is received (previously started from policy commencement)
- New occupation codes for professional lives
- Quotes software enhancement within Asteron’s Equate online quotation tool, allowing two income protection policies to be quoted at the same time, on the same screen
Asteron has also effected reductions to its level premium rates for Lifeguard series Life Cover policies sold since 2007, based on age, gender and smoking status.
Asteron is seeking to position/re-affirm itself as a leader, particularly in the independent adviser market, where it is targeting its Asteron Life! program and now its further engagement with healthy lives via the new Healthy Plus premium discount option, to be seen by advisers as a key differentiator in the market.
