Netwealth joins risk product bandwagon

Master trust providerNetwealthhas added a life insurance product to the range it has available through its Superannuation Master Fund, joining what seems to be a growing industry trend.

Netwealth managing director Michael Heine says the TPD, death and salary continuance insurance added to the fund gives more investment choice and flexibility.

He says the move was in response to adviser demand for convenience but more importantly the possible tax effectiveness and savings that can come from paying insurance premiums from a super account.

"The strategy is simple, we listen to what the advisers and their clients want and we respond to them," he says.

Symposia Business Partners’ Les Clayton, a consultant on distribution, says that in the future, product manufacturers will be offering risk products more frequently as part of a platform solution.

He says that this will be driven by the need to meet consumer demands for innovative retail risk products.

Seemingly in line with this trend, in AprilNorwich Unionflagged the possible introduction of additional life insurance products to its Navigator platform after a “resurgence in market demand” for the products.

This followed Norwich Union’s launch of a suite of life insurance products called Wealth Protection, which are available through the Navigator funds administration platform.

Heine says that the premiums charged on the new risk product offered by Netwealth are competitive and that an adviser can earn up to 20 per cent commission.

The move came after Netwealth announced earlier in the month it would also be accepting unlisted property syndicates as part of its wrap reporting.

Heine says that when larger platforms and dealer groups try to reduce fees it is often coinciding with the release of a shorter investment list which may increase risk and limit returns.

However, he says Netwealth has a highly competitive pricing structure but has been able to maintain choice.