Aviva releases entire risk range on Navigator
Aviva has put the full version of its Protectionfirst suite of risk products on Navigator.
In a move that is claimed to be a first in Australia, Aviva general manager, wealth protection, Natalie Eckersall said while many companies offered risk products on platforms, they usually were cut down versions.
“A lot of the risk products offered on platforms don’t offer the full range of services that are in the premium products,” she said.
“We have included the entire risk range and we have increased the sums insured as well.”
Death and total and permanent disability (TPD) cover has been increased up to $5 million, critical illness cover increased to $2 million and income protection increased to $40,000 a month.
“Protectionfirst is rated highly by many of the research houses, which is why we have made it available through the platform,” Eckersall said.
“However, we have been receiving strong demand from advisers wanting a premium range of risk products on platforms, and not the second rate products that are being offered.”
Although the adviser will be required to complete a full application form for the Aviva risk products, the client can pay the premiums through the platform.
“The adviser just ticks the box for payment through Navigator, and it will continue until we are told to stop,” she said.
“This was another feature the planners wanted.”
Aviva will also allow multiple ownership of the risk products through the platform. For a client with their own superannuation fund, the risk and TPD products can be owned by the fund while their income protection policy can be registered to them.
“We will also allow the premiums to be paid from different sources, such as the death cover coming from the Navigator superannuation fund while income protection can come from a bank account,” Eckersall said.
“We believe this will help increase the proportion of advisers using our risk products, but it will also help advisers meet their ‘know your client’ requirement.
“This will also widen the protection market to customers who were previously unable to get cover with the simpler products.”
Recommended for you
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
New Zealand’s financial regulator is following the footsteps of its Tasman neighbours and proposing to conduct a review on improving the accessibility of financial advice and advice business models.
