In an effort to meet clients’ short- and long-term insurance needs, Asteron Life has introduced a way for advisers to offer stepped and level premiums in the same product.
Speaking at an adviser roadshow in Sydney, Asteron executive manager of life risk products Brad Partridge acknowledged that life insurers “do not make it easy” for advisers to create client insurance plans that combine stepped and level premiums.
He said that in order to help advisers meet a client’s long-term and short-term insurance needs, Asteron has introduced “mixed premiums” for its insurance products.
“Mixed premiums now allow you to nominate a split of level and stepped premiums at benefit level,” Mr Partridge said. “It also allows you to select it at policy level if you wish.
“What this enables you to do is to select, for example, a 100 per cent level premium for your life cover then maybe a mix of 30 per cent, 70 per cent for your linked TPD benefit and vice versa all the way through the product options you may recommend.”
Mr Partridge explained that the mixed premium concept not only allows advisers to embed the benefits of the premium in the long-term, but also allows the advisers to talk about a client’s future insurance needs.
“[That could be in] five years, 10 years and 20 years’ time,” he said.
“It also allows you to change the insurance at a later date without the level premiums you have already recommended.”