Asteron: Life but not as we know it
Research showing that 69 per cent of self-employed or small-business people have no income protection has prompted Asteron to upgrade its life insurance and Wealthstar products.
A study released by Rice Warner Actuaries and the Investment and Financial Services Association in August estimated that there was an annual disability protection gap in Australia of over $265 billion, with only 75 per cent of those surveyed able to maintain their existing lifestyle for up to six months in the event of injury or illness.
In response, Asteron has reduced premiums across its income protection and term life insurance products and streamlined its fee structure. These premium reductions were enacted to improve its competitive position, particularly for older clients, the self-employed and small business owners.
Asteron has also made changes to its underwriting arrangements, adding a recovery reinstatement option, increased non-medical limits along with updated quotation software and a new life insurance supplementary product disclosure statement (PDS).
The Wealthstar platform has received similar treatment, now incorporating a ‘transition to retirement’ feature for allocated pensions, a revamped ‘plain English’ PDS and six new investment options. These include a range of global property and global equity funds provided by Merrill Lynch, Schroders, IOOF and Walter Scott.
Asteron said that decisions about the redeveloped life insurance product line-up were made based on adviser consultation and industry findings on the income protection gap.
It also said that in making the changes, consideration was given to the Australian Securities and Investments Commission chairman Jeffery Lucy’s recent call for the superannuation industry to provide consumers with easily understandable, actionable information.
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