AvivaAustralia has thrown its support behind the recent introduction of a bill by Queensland Shadow Treasurer Bruce Flegg to abolish stamp duty on life insurance products.
General manager — wealth protection products Natalie Eckersall said the existing stamp duty adds about 7.5 per cent to the cost of insurance for income protection polices every year.
“On average, our clients pay an average of about $1,500 per year for income protection, including roughly about $100 to $105 dollars because of stamp duty,” she said.
She said she “fully supported what the shadow treasurer is putting up to the Queensland Parliament to make income protection more affordable”.
“The danger is that in today’s environment of rising interest expenses, people will begin to ask themselves if they can afford to keep their life insurance policies going, particularly income insurance.
“However, now is precisely not the time to let this very important contract lapse, and any measure that helps to make it more affordable to the public is welcome,” she said.
