Speaking at a media briefing in Sydney, Synchron director Don Trapnell said he had approached several Australian insurers to help create the new fixed-term level product before AIA agreed.
“We knew Australians would value a life insurance product with more level premium pricing and timing options to meet their current and future needs,” he said.
“We approached several Australian life insurers with this brief and were delighted to find AIA Australia was up for the challenge and looking at similar insurance solutions.”
AIA Australia’s retail product manager Steve Baxter said: “While we’re keeping much of the detail under wraps for now, what we can reveal is that soon clients will be offered fixed-term level premiums that complement current stepped and level options. This means advisers will be able to better align the products to meet the specific needs of individual clients. We commend the leadership position Synchron is taking on this.”
Mr Trapnell added that the aim of the new product is to provide greater flexibility for advisers, while meeting the needs of their clients and providing them with greater certainty.
He expects the new product to be finalised later this year.
“Fixed-term level life insurance products have been widely available in international markets for some time, and we think it’s time that Australians had more choice when it comes to how they structure their life insurance solutions,” Mr Trapnell said.
Having known Don “forever”‘I couldn’t agree more but let’s not try to embellish the facts that this “new product” is far from a new product.nIt is just a rehash of a very old product.
Roger, I don’t think anyone has worked as hard as Don to ensure a reasonable resolution, however, he also needs to focus on the ongoing sustainability of a private business.
My recollection is that fixed term Life Insurance policies were available many years ago and were discarded (refer to the old AMP rate book). Isn’t the issue that we are not happy with the changes involved as a result of the LIF and the impact this will have on both the client and the adviser. Shouldn’t the focus (at this stage) be on a satisfactory resolution to current issues prior to looking at a “new or not so new range of products”.
Great work to all concerned and if it is of benefit to the insured it’s a great thing.