Risk Product Updates
/AIA Australia introduces new IP product
A new income protection product, IP CORE, is being launched by AIA Australia, to sit alongside its existing offer within the Priority Protection Product. The product is in line with new moves for a more sustainable future for income protection products.
IP CORE pays a monthly benefit for total or partial disability as a result of injury or sickness as per the definitions. The benefit period lasts five years to the age of 65 and can be obtained via ordinary policies or superannuation.
The product offers payment of up to 70 per cent of pre-disablement income in the first two years of the claim, with 60 per cent payable thereafter. IP CORE will be sold alongside Priority Protection IP products from January to September 2021. From October 2021, new product design obligations come into effect.
Updates to BT Protection Plans pricing
BT has increased premiums as of 4 January 2021 for all new BT Protection Plans policies. The increases include:
Lump sum policies - level premiums see a 15 per cent increase, while stepped premiums see no change.
Income policies - level premiums see a 15 per cent increase, stepped has no change, to age 55, 65 and 70 benefit periods 20 per cent increase, with two-year and five-year benefit periods see no change.
Optional Accident Benefit premiums will increase by 35 per cent, independent of above pricing changes, with premium changes multiplicative.
IP60 introduced - a 10 per cent discount for the first two years of a policy, available to Income Protection, Income Protection Plus, Income Protection as Superannuation and Income Linking Plus, available when applicants have an income replacement ratio of 60 per cent or less and an annual salary equal to or less than $320,000 per year.
