MLC cuts TPD and life insurance premiums
MLC Insurance has cut its premiums by up to 15 per cent for life cover insurance and total and permanent disability (TPD) extension insurance.
Effective from today, the rate cut extends to new customers at, or when they reach 45 years of age or over on the MLC Insurance and MLC Insurance (super) products.
MLC executive general manager for insurance, David Hackett, told Money Management the rate cut will help future address the under insurance in Australia.
"If you look at underinsurance, often it is not just about having enough insurance, it's the wrong type of insurance as well," Hackett said.
"With many insurance premiums increasing as you get older, a 15 per cent rate cut from 45 years of age represents a significant saving.
"This will help more Australians to keep lie insurance for longer, which is an important component in helping to save for retirement."
The customers will receive a 2.5 per cent cumulative rate cut each year up until 45 — which in total will represent a full 15 per cent saving and from age 45 onwards the 15 per cent rate cut will apply, MLC said.
"KPMG and the Financial Services Council sho there is a 1.1 trillion insurance gap for 11.5 million working Australian families and 19 per cent of Australian families don't have any coverage at all," Hackett said.
"Today's announcement represents the next step towards delivering on our goal of making life insurance more affordable and accessible for more Australians."
Existing customers at, or over 45 years of age will have to reapply to receive the rate cut.
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