AXA Australia (AXA) has maintained its business focus in launching an upgraded market offer for its AXA’s Elevate risk products range.
Following the completion of its national roadshow presentations last week, the enhanced AXA’s Elevate proposition comes into effect this week, from 16 August 2010.
While there have been enhancements across both lump sum and income protection products, it has been income protection products that have seen the more significant changes.
Delivered to advisers via a baseball-linked theme of providing ‘… an insurance solution that covers all bases’, key changes include:
Income Protection
- Launch of a new IP product, Income Insurance Premier Plan, which replaces the Income Insurance Professionals product. Provides more comprehensive cover down to occupation categories B and C as well as the professionals and other A class categories.
- Expansion of Total Disability definition (Premier Plan) to include the three-tiered assessment option at claim time of either hours (the 10-hour definition), duties or income
- Updated definition of partial disability
- A new offer to medical and dental graduates of a maximum of $6,250 monthly benefit without financial evidence at underwriting or cliam time for total disability (but proof of pre-disability income needed for partial disability claims)
- Improved income replacement ratios for high income earners
Lump Sum
Focus mostly on trauma insurance:
- New trauma definitions introduced for:
- Rheumatoid arthritis
- Advanced diabetes
- Enhanced definitions for:
- Multiple sclerosis
- Muscular dystrophy
- Parkinson’s disease
- Alzheimer’s disease and other dementias
AXA’s Chief Medical Officer, Goran Lazic briefly shared with advisers the nature of each of these diseases within his roadshow presentation, including the mostly debilitating impact they have on people, while at the same time noting the increasing incidence of many of these diseases over time.
- Extension of child trauma to include death and terminal illness cover
- Removal of 12-month wait for life cover buy-back within the TPD option
- Enhanced waiting period rules covering life buy-back under the trauma option
- Maximum TPD limit increased to $5 million (for both any and own occupation) for high income earners
The insurer also stressed to advisers that all future benefit upgrades will be passed back to existing policy holders automatically (assuming the benefit is more favourable) rather than AXA having the choice.
SuperLink
- AXA has extended policy ownership structures within its SuperLink insurance option to now include non-superannuation entities such as businesses and family trusts
Premium Pricing
In its update document, AXA notes the following:
- Income insurance premiums generally reduced (but some increases in the standard plan)
- TPD premiums generally reduced
- Minor increases in Trauma Plus product
- Reductions in level premiums for lump sum products after age 40
- Improved large case discounts
AXA’s roadshow also featured contrasting personal stories from two multiple sclerosis victims, one of whom had trauma insurance, while the other did not.
Also sharing his story was AXA’s General Manager of Sales and Marketing, Adrian Emery who, as a well-known and senior figure within the financial services industry, very publicly shared his very private cancer experience, and the deep personal and professional impact this has had on his life. riskinfo congratulates Adrian on having the courage to share his story, one that serves to highlight the random nature of diseases such as cancer, and the immensely important role played by advisers in ensuring their clients hold adequate cover (with all the right options) as well as the importance and value of the role they play during the claims process itself.
Click here to access a copy of the updated AXA’s Elevate Insurance Solutions PDS.
