Zurich set to launch groundbreaking life/risk product
Zurich Financial ServicesAustralia is set to launch what it claims is the first Australian life risk insurance product to enable financial planners to tailor insurance portfolios to clients’ changing needs at guaranteed premiums.
According to Zurich, the new Select Term product, available from April 1, is designed to safeguard wealth for a select number of years at a pre-determined cost. Premiums are level throughout the selected five, 10 or 15-year term with a five-year premium guarantee — something the company said is unique in the Australian market.
Zurich head of life risk Andrew McKee said the new product is also unique in that it enables planners to tailor insurance portfolios to their clients’ changing lifestyle and business requirements. He said it is well-suited to protecting a mortgage, large expenses for limited periods (such as education costs) and business profitability. In the event of a death or terminal illness during the chosen period, the cover provides a lump sum that enables dependents to repay debt or pay for education for example.
“In Australia’s current economic climate, millions of households and businesses are worrying about their mortgage burden or business profitability because they know they are at financial risk with their high level of debt,” said McKee.
“By customising life insurance by the length of the term, Australians now have the flexibility to design an insurance solution that meets their changing needs, backed by the security of premiums that are guaranteed for the first five years.”
Zurich strategic marketing manager Marc Fabris said Select Term will be made available to retail clients via financial planners and their websites.
“[I]t can meet the needs of a diverse range of clients [including individuals, businesses and superannuation funds] and is ideally suited as part of a risk recommendation, allowing you to mix and match this product with stepped or level premium alternatives.”
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