The Income Assure and Income Assure+ products provide income protection insurance with different cover options. Income Assure offers an income replacement ratio of 70 per cent with tiering for income over $150,000, while Income Assure+ provides a ration of up to 90 per cent for six months post-claim through a “booster” option.
MLC chief life insurance officer Michael Rogers said MLC is excited about the new products which were designed following customer, adviser and licensee research that found 83 per cent of retail insurance customers earn $150,000 or less per annum, with income replacement needs at the highest during the early stages of the claim.
A further 89 per cent of retail insurance customers returned to full health within two years of making a claim.
The analysis also found that both advisers and customers value price and income replacement ratio above other features and that planners wanted more products with greater certainty of future premiums.
Mr Rogers added the products — which both feature four options — are a boost for advisers who can choose the product and option best fit for their clients, while also giving customers more flexibility in their own choices.
“Underpinned by our ambition to be Australia’s leading and most trusted life insurer, we went back to the core principle of how we could meet customer needs,” Mr Rogers said.
“We looked at the principles of indemnity, and insuring definable, calculable and meaningful losses caused by accident, injury or illness.
“We believe these products strike the right balance between benefits and affordability.”
Income Assure and Income Assure+ will be offered as part of MLC Insurance and MLC Insurance (Super) from 1 October.
