Tower tailors disability insurance for the individual
TowerAustraliahas launched a new disability income product aimed at providing a more individual insurance solution for clients.
According to Tower risk product marketing manager, Col Fullagar, in the past there has been a one-size-fits-all approach to disability insurance. While the advisers have identified the clients needs, they have not always had the flexibility to adopt the product to meet their needs..
However, with a 50 per cent increase in premiums over the past five years, consumers have become more selective about what sort of insurance cover they want.
“The target market for this product is not an occupational group, it is a philosophical group, who are weary of having [insurance] cover that does not cater for their needs,” Fullagar says.
He says 80 per cent of risk products are currently sold based on 75 per cent of a client’s earnings with a 30 day waiting period until 65 years of age.
However, the Tower disability protection plan offers a split benefit amount, so for example, 50 per cent of the income can be replaced immediately with the other 25 per cent replaced at a time in the future. Because the total sum is not received at one time, clients can save between 5-20 per cent on risk premiums.
Further, single benefit options can also be added to the product including an increase in claim option, bed confinement option, retirement protection and disability plus protection which enables the insured to cover up to an additional 50 per cent of their earnings, with the benefit paid if they are severely disabled.
Benefit packages are also available in the form of rehabilitation, home, day-one cover packages and a business expenses package.
According to Fullagar, advisers and their clients will embrace the simplicity, flexibility and equitability of the risk product, with their response very positive in past product presentations.
“They could see we had made an assessment of the market and not followed the other companies. Equity balance and focus has guided the product,” he says.
The risk product will be rolled out to Tower advisers before being made available to a wider audience.
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