AXA Australia has released a new PDS containing a raft of product and services enhancements for its AXA’s Elevate risk products range.
Intending to offer a product and service solution in keeping with its marketing them of ‘covering all bases’, the update includes product enhancements and service upgrades designed to ‘simplify’ and ‘streamline’ the processing of business.
Key changes include:
Income Protection
- Benefit period extended to age 70; designed for the growing trend of those who may be working later in life
- Enhanced definition of pre-disability income on indemnity contracts, offering highest average monthly income for any consecutive 12 months in the three years prior to disability (previously average monthly income in the two years before benefit payable)
- Ability to reduce waiting period from two years (for clients who have cover under a group income insurance scheme with a two-year benefit period, which is terminated when they leave their employer) to 90 days without medical evidence
- Significantly reduced premiums for the accelerated accident option
- Introduction of a new Senior Plan – clients with higher occupation ratings can now elect at age 65 to convert their existing cover to the
new Senior Plan, subject to certain criteria, delivering a benefit period of one year until age 70 - Increased maximum monthly income protection benefit up to $60,000 (previously $30,000). Benefit amounts in excess of $30,000 are subject to a two year benefit period for that component
- Increased daily accommodation benefit doubled to $300 oer day
- Increased death benefit from three times monthly benefit to six times monthly benefit, to a maximum of $60,000
- Interim cover period extended to 90 days (previously 45 days)
Lump Sum Covers
- Increased level premium ceasing age for TPD and trauma, allowing clients the option to access to cover to age 70 on level premiums
- Removal of two restrictions (ownership and size of increase) applying to Business Solutions Options
- Future insurability now an inbuilt feature for lump sum covers and extended for the first time to TPD and trauma
- Sickness now civered under interim cover on the life insurance plan
- Various enhancements to trauma definitions
In addition to the product enhancements AXA has also taken initiatives within the underwriting process by:
- Launching a new ‘proposed exclusion’ form where the client will be
able to propose selected exclusions at the application stage. After assessment the underwriter will call the adviser to confirm whether the exclusion or exclusions will apply. AXA says there will be no need for a revised terms letter or for the adviser to go back to his/her client for a signature after the application has been submitted. - Introducing a new short form personal statement for life cover up to $500,000 and for individuals up to 50 years of age, designed to provide a simple and quick process for people with basic protection needs
Further details of these and other updates and enhancements can be accessed in AXA’s updated PDS dated 21 March 2011.
