AIA Australia announced today that the company has launched Term Level – a new feature, offered as part of our award winning Priority Protection product, providing greater flexibility when matching premium structures to clients’ needs. By providing the predictability of a true level premium for selected terms of 5, 10, and 15 years, advisers can help their clients avoid yearly stepped premium increases.
Damien Mu, CEO AIA Australia and New Zealand, says: “We at AIA Australia are really excited to offer Term Level. 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. We have worked closely with our advice partners, in particular with Synchron Director Don Trapnell, and tested development ideas with advisers in order to better understand which clients would value an offer of this nature.”
Term Level premiums may provide significant savings during the initial term. Depending on a client’s situation and cover chosen, Term Level premiums may offer savings of 50%* or more when compared to level premiums. In most instances, clients will enjoy cumulative premiums that are lower than cumulative stepped premiums. Clients may also be eligible for a 12.5% bundled discount, a further 12.5% discount when AIA Vitality is attached as well as a loyalty discount at the end of the initial term.
Mu added that Term Level would 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 advisers’ role: The real reasons customers were cancelling policies were due to changing needs and economic concerns. 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.
The Term Level premium structure is available on Life cover as well as linked TPD and/or Crisis Recovery benefits including where those benefits are taken out through Superannuation PLUS or Maximiser, as applicable.
*A 55% saving is achieved based on a comparison of level and Term level quoted yearly premiums as at 29 April 2017 for a 45-year-old male, non-smoker, ‘AAA’ occupation category purchasing $1,000,000 of Life Cover with linked TPD (Own Occupation) cover on a 5-year initial term. Calculation includes VIC stamp duty and policy fee.
