AIA adds new premium structure feature
AIA Australia has launched a new feature to its Priority Protection product to enable advisers to help their clients avoid yearly stepped premium increases.
The new Term Level feature provides the predictability of a true level premium for selected terms of five, 10 and 15 years, and provides greater flexibility when matching premium structures to clients’ needs, AIA said in a statement.
Term Level premiums may provide significant savings during the initial term and, depending on a client’s situation and cover chosen, may offer savings of 50 per cent or more when compared to level premiums.
However, AIA said, in most instances, clients will enjoy cumulative premiums that are lower than cumulative stepped premiums.
AIA Australia and New Zealand chief executive Damien Mu said Term Level will assist advisers with client retention.
“When we looked more closely at retention as part of the LIF, we found that there was a misnomer around the adviser’s role. The real reasons customers were cancelling policies were due to changing needs and economic concerns,” Mr Mu said.
“With this in mind, we designed Term Level to help advisers to better match the premium structure to their clients’ individual life stages, whether they’re buying a house, starting a family, sending their kids to school or satisfying a particular business need.
“Term Level complements our existing stepped, level and optimum premium options and is an example of how AIA Australia works with licensees and advisers to provide greater choice to their clients as well as opportunities to assist business growth.”
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