Asteron has today announced an Australian-first - a maximum sum insured for a single TPD payment of $3 million.
The $3 million TPD limit is an increase from $2.5 million and is the latest in a string of innovative life insurance features released to the market first by Asteron over the years.
Asteron’s Head of Product and Marketing, Jane Power, said, “Our ongoing product enhancements, such as the increased TPD limit, are driven by a customer-centric business model, whereby we identify the changing needs of our clients and then build and enhance our offer in response to these needs.
“Research from the Investment and Financial Services Association (IFSA) shows that Australians in their mid to late 30s are at an age where their debt-to-income ratio is at its highest1, yet a subset of this group (age 31-35) also contains the people most at risk of being underinsured2. When there are mortgages to pay and dependent children still at home, the main income earner in the household simply can not afford to become permanently disabled.”
Being a lump sum payment, TPD insurance can extinguish this household debt and provide for claimants who are no longer able to work and who may incur unexpected expenses, such as necessary modifications to their home, or medical costs not covered by their private health insurance.
The level of TPD cover required by clients is typically determined after an adviser-led fact find, which involves assessing debt and dependant levels. But until now, this has been capped at $2.5 million.
“As people are taking on greater levels of debt and their asset base is growing, there is an obligation to be able to provide adequate insurance cover for them”, said Asteron’s Senior Life Product Manager, David Wright.
“If a needs analysis performed by the client’s financial adviser shows a requirement for more than $2.5 million, customers can now get that level of cover at Asteron.”
“This increase impacts both the TPD option under Term Life, as well as Stand Alone TPD. It is available now for Asteron’s ‘own’, ‘any’ and ‘modified’ (under Term Life) definitions”, he added.
1 IFSA ‘Fast facts: a nation exposed!’ August 2005
2 IFSA ‘Investigating the issue of underinsurance’ July 2005
Asteron Life™ is committed to providing customers with long term financial security. We provide life insurance products including Income Protection Covers, Trauma Cover, Total & Permanent Disablement (TPD) Cover, Life Cover and Business Expenses Cover. To obtain a copy of our privacy statement, please contact us on 1800 221 727 or visit the following website www.asteronlife.com.au/privacy to view or download the policy.
Asteron supports and adheres to the Life Insurance Code of Practice (Code). The Code has been developed voluntarily by the Life Insurance industry through the Financial Services Council to promote high standards of service to consumers, provide a benchmark of consistency within the industry, and establish a framework for professional behaviour and responsibilities. Download the Code here. For more information contact the Financial Services Council on (02) 9299 3022 (local call cost), email email@example.com or visit www.fsc.org.au
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Asteron Life & Superannuation Limited ABN 87 073 979 530, AFSL 229880 (Asteron) is part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL). Suncorp Portfolio Services Limited ABN 61 063 427 958, AFSL 237905, RSE Licence No L0002059 (SPSL or Trustee) is part of the Suncorp group of companies (Suncorp). SPSL is a related body corporate of Suncorp Group Limited ABN 66 145 290 124 and Suncorp-Metway Limited ABN 66 010 831 722 (Suncorp Bank) (Suncorp). This product is not a bank deposit or other bank liability of the Suncorp Bank. The obligations of the different entities of TAL and Suncorp are not guaranteed by other entities