AIA adds superannuation payment option
Financial advisers will be able to offer clients a range of AIA's priority protection products with payment through their superannuation following a range of upgrades announced by AIA.
Clients will be able to purchase income protection insurance by paying for the appropriate level of cover wholly through their superannuation under a move AIA said demonstrated its commitment to partnering advisers and would enable advisers to offer clients more flexibility in purchasing insurance.
Clients who may particularly benefit included the self employed, who may struggle with no employer superannuation support but can claim personal contributions to super as a tax deduction, said AIA's head of product and marketing Tim Tez.
"A recent AIA Australia survey of advisers across the country showed that the self-employed are viewed as one of the biggest growth opportunities for advisers this year," he said.
The Super IP option enables advisers to address clients' concerns about cash flow and taxation, he said.
AIA also announced upgrades to some crisis recovery benefit definitions, including an improvement to the cancer definition in response to earlier detection techniques. An amendment to the definition of heart attack removes any doubt of payment, in the event of a heart attack, regardless of its severity, AIA stated.
AIA also introduced terminal illness, intensive care and out-of-hospital cardiac arrest benefits under the income protection range, and extended the elective or cosmetic surgery benefit to all income protection policies.
The upgrades would not be accompanied by an increase in premiums, AIA stated.
AUTHOR
Staff Writer
Recommended for you
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
