MLC has announced cuts to its Life and TPD product premiums, with reductions of up to 15 per cent for new customers. The changes are effective as of 23 November 2015.
Stepped premiums for life cover and TPD extension insurance are to be cut by 15 per cent for all new customers at or when they hit age 45 or over on MLC Insurance and MLC Insurance (Super) products.
Stepped premiums for life cover and TPD extension insurance for new customers at or when they reach ages 40-44 for MLC Insurance and MLC Insurance (Super) will reduce by 2.5 per cent in a cumulative rate cut each year up to age 45. This represents the full 15 per cent. The full 15 per cent rate cut applies after age 45.
Other changes made at MLC lately include removing insurance policy fees, increasing multi-cover discount to a maximum of 30 per cent, extending the TPD optimiser, and the introduction of insurance premium payments by partial rollovers.
Zurich has also changed their TPD premiums in response to LIF changes in 2016. Insurance products at Zurich are now simpler in pricing structure, and life and TPD new business premium rates have been reduced. New income protection products have been launched.
Wealth protection policies will now have two years of rate freezes, with the base rate remaining unchanged for the first two years of the policy.