Asteron Life managing director Nadine Tereora said a common piece of feedback from advisers was that the industry often paid out large sums to customers on trauma claims, when their condition did not need that level of money - yet.
“There’s a big temptation to spend that lump sum payment on consumer goods leaving little, or worse nothing, when their condition progresses.”
In response, Asteron Life has introduced the Major Trauma benefit – an optional benefit that lets customers reserve some cover for a more severe recurrence of a condition, or a new major condition in the future - if their initial condition is not “major”. Taken together with Asteron Life’s Early Trauma benefit, customers can claim up to three times for the same or related condition.
David Drillien, executive manager of product, underwriting and new business, said Asteron Life’s core trauma product remains largely unchanged. “We know what we currently have is a great trauma product, but we wanted to take on board adviser feedback as well as look at ways we could provide a more cost-effective trauma option for customers.”
He said: “Customers can still claim on their trauma policy as they usually would, but if they have the Major Trauma benefit and they meet the ‘major trauma’ definition they’ll receive an additional sum insured as well as their base trauma pay out. If they don’t, the Major Trauma benefit is designed to stay in place to protect them if their condition gets worse in the future.”
Keeping the price of the new benefit as low as possible was important. “Typically a reduction in the price of a trauma product means fewer conditions are covered, which is something we wanted to avoid,” Drillien said.
The Major Trauma benefit premium is 30% less than the equivalent Trauma Recovery Cover base premium, with the same number of conditions covered.
“We’ve kept the benefit as simple as possible,” he said. “Our aim is that it’s a worthwhile option for advisers if their client doesn’t want to spend as much money on their policy - but they still want to have a good level of cover in place for when they really need it.”
Asteron Life has also introduced commission by cover, allowing advisers to select which commission type to receive on different covers within a policy. “Previously advisers could only select one remuneration type per policy,” Drillien said.
Advisers can now choose their remuneration by cover type, or premium type (level or stepped).
Tereora said: “We’re working hard to deliver value to customers and advisers. What we’ve introduced is just the start of an exciting year ahead in terms of added value and innovation.”
| « AMP life business flat, but company on track | Good response to changes: AIA » |
Special Offers
No comments yet
Sign In to add your comment
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved