PLEASE NOTE: This information should be read in conjunction with the article, “Unlocking the value that comes from bundling life and TPD insurance”, on pages 40 – 41 of the April 2012 edition of Professional Planner.
Here is what different insurers currently offer:
Table 1. Buyback options available
| Company | Deferred buyback | TPD – Immediate Buy Back |
| AIA Australia | TPD buyback | Double total and permanent disablement (all future life premiums are waived) |
| AMP | Not available | TPD plus option (reinstated future life premiums are waived) |
| Asgard | Not available | Not available |
| Asteron/Suncorp | Single TPD payout option | Double recovery option (reinstated future life premiums are waived) |
| AXA | Not available | Life buyback – TPD option & Double TPD option |
| BT/Westpac/St George | Not available | TPD Buy Back Benefit & Double TPD Option |
| CommInsure | Built in | Not available |
| Macquarie – FutureWise | Built in | Double TPD option (reinstated future life premiums are waived) |
| MetLife – Your Life | Not available | Double pay TPD option (reinstated future life premiums are waived) |
| MLC – Insurance | Not available | 14-day life cover buyback option |
| MLC – Protectionfirst | Not available | Disability buyback option |
| OnePath | Built in | Double TPD option (reinstated future life premiums are waived) |
| TAL | Death buyback option | Double TPD option (reinstated future life premiums are waived) |
| Zurich | Built in | Double TPD benefit (reinstated future life premiums are waived) |
Source: Rice Warner Actuaries
Table 2. Pricing of different options – Male aged 40 next birthday, cover of $500,000, non-smoker, accountant, any occupation, NSW
| Life | SA TPD | Life + TPD rider | Life + TPD stand-alone | Life + TPD buyback | Life + double TPD | 2 x Life + TPD | |
| Number of insurers offering this option | 14 | 14 | 14 | 14 | 8 | 12 | 14 |
| Minimum price | $359 | $309 | $579 | $620 | $607 | $657 | $821 |
| Median price | $401 | $361 | $636 | $713 | $638 | $724 | $882 |
| Maximum price | $452 | $414 | $658 | $911 | $691 | $801 | $963 |
| Average difference compared to Life + TPD rider | 64% | 59% | – | 115% | 102% | 114% | 141% |
Source: Rice Warner Actuaries
Graph 1: Premiums for each insurer for a male, aged 40 next birthday, non-smoker seeking $500,000 of cover
Source: Rice Warner Actuaries
