The new limits mean that anyone aged 45 or under with a clean application can potentially take out $1 million of life cover, living assurance benefit, or total and permanent disability cover without a blood test or medical.
Those aged between 46 and 60 with a clean application can potentially get $500,000 of cover without a blood test.
“We were able to make the changes due to the quality of business that advisers have given us. Because there are now fewer blood test requirements, we anticipate faster turnaround times,” Sovereign managing director Simon Blair says.
“But more importantly it means that Sovereign’s application process is less invasive for customers.”
In addition, Sovereign will no longer aggregate all lump sum benefits for medical limits. Mandatory medical requirements in most cases will now be based on the highest sum insured only. Assuming there is no existing cover, the combined effect of non-aggregated benefits and increased medical limits will enable Sovereign to offer up to $1 million life, $1 million LAB and $1 million TPD cover without mandatory medical requirements. This scenario is $3 million worth of cover – a significant change from previous approaches and highly beneficial to advisers and customers.
“The combined non-aggregated benefits and increased medical limits break new ground in the market but more importantly make life easier for both customers and advisers,” Blair says.
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