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MLC Life targets price and income replacement

Staff Writer29 September 2021
Coins stacked in piles underneath an umbrella

Risk advisers and their clients value price and income replacement ratios well above all other features, according to research conducted by MLC Life underpinning its new product offerings.

MLC Life launched its new range of income protection products today, branding them as Income Assure and Income Assure+, with the insurer promoting the products as providing income protection insurance with a range of cover options to suit specific needs and budgets, making it easier for advisers to help clients protect what’s important to them.

It said the new products would be offered as part of MLC Insurance and MLC Insurance (Super) from 1 October 2021, and had been designed following extensive customer, adviser and licensee research and analysis.

MLC Life said its research revealed:

83% of retail insurance customers earn $150,000 or less per annum, with income replacement needs highest during the early stages of a claim.

89% of retail insurance customers were able to return to full health within the first two years of making a claim.

Both customers and advisers value price and income replacement ratios, well above all other features.

Advisers wanted us to introduce products with greater certainty of future premiums, underpinned by more choice and options.

Customers would like greater flexibility of the conditions included in their policy.

Commenting on the launch, MLC Life chief Life Insurance Officer, Michael Rogers said he believed the new offerings struck the right balance between benefits and affordability.

“Income Assure and Income Assure+ enables most customers to have the maximum sum insured allowable, underpinned with premium stability and product sustainability. Income Assure provides an income replacement ratio of 70%, with tiering for income above $150,000, and Income Assure+ provides a ratio of up to 90% for six months post claim if customers select the ‘booster’ option.”

The company said that by providing two levels of cover, each with 4 options, advisers could choose the product and options that best met the needs of their client. Examples of the choice provided includes how cover is assessed after two years on claim, if partial disability payments are required without the customer ever being totally disabled, or the flexibility their clients require if they return to work during the waiting period.

Staff Writer

Staff Writer

Financial Newswire

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