Discover the TAL Health Sense offering

Discover the TAL Health Sense offering

TAL Health Sense – who is eligible?

TAL insurance offers a product called Health Sense which provides their clients who are within a healthy BMI range (19 – 28), with discounts of up to 15% on Life, Trauma and/or TPD insurance. The discount is automatically applied to policies at application stage. However, the discounts do not stop there. https://www.tal.com.au/existing-customers/accelerated-protection/tal-health-sense

TAL Health Sense Plus – Additional discounting offer

TAL are now offering Health Sense Plus to existing client with that hold the Health Sense product. This allows those with a healthy Body Mass Index (BMI) to apply a 5% premium discount on Life, Critical Illness and TPD Insurance premiums for up to two years.  Revalidation is required every two years to retain the discounting.

What criteria is required?

To apply for the discount, you must meet the following criteria:

  • Be within the BMI range of 19 – 28.
  • Be below age 62.
  • You must not have claimed under any policies that you hold with TAL.
  • Complete a preventative screening with your GP.

How do you apply?

You will need to arrange the following:

  • Complete a preventative screening with your GP. It is best to be advised by your GP as to which test is appropriate.
  • Obtain an invoice, referral letter or other confirmation of a preventative test from your GP. This is required as evidence.
  • Complete the link provided to you over email at your two-year anniversary confirming that you BMI is within the healthy range and upload the evidence of your screening.

For further information on this offering, please reach out to our personal insurance specialist Luke Smith at MBS Insurance on either luke.smith@mbsinsurance.com.au or 0452 515 739.

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Insurance Premium Increases

Insurance Premium Increases

Income protection (IP) policy holders are already seeing increases of up to 100% on their premiums this year and a majority seeing increases above 20%. This is not the case with all insurers. Policy changes are imminent, an immediate review of your policies is necessary. Read more – Insurance Premium Increases May 2021.

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Have you reviewed your personal insurance?

Have you reviewed your personal insurance?

The insurance industry is ever-changing. The historical approach of ‘set and forget’ with respect to policies, is not appropriate. Our insurance partners MBS are committed, confident and capable of delivering better outcomes for you. Book in your FREE review as today!

Why you NEED to review existing policies;

  1. Premium Volatility – Insurer profitability according to APRA and flow on to the premiums payable.
  2. Policy Wording Changes – Recent changes to policy wording by Super. Funds & APRA impress upon the need to review.
  3. Cover Quality – With access to the market and research analysis, we examine the quality of the existing policies and advise accordingly.
  4. Price & Structure – We analyse the potential for premium saving and effective policy structure, not just for year 1, but the impact year on year.

Who benefits most from a policy review?

  1. Young Families – Marriage, acquisition of a new home or investment property and birth of a child are all common trigger points for the need for advice and appropriate cover.
  2. Executives & Business Owners – Executives & business owners accumulating wealth, paying private school fees, upgrading homes, or acquiring holiday homes will recognise the need and value the process.
  3. IP Tax Deductions – Income Protection tax deductions are one of the most common identifiers when examining which of your clients have, or should have, a policy. Those under 55 years and earning > $80,000 should certainly be provided with options to protect what is, in many cases, their largest financial asset.
  4. SMSF – Trustees have an obligation to review the need for Insurance, however they should also be provided advice on the structure, quality and appropriateness of the portfolio. Like ITR’s, Super Fund returns are an easy place to identify those with and those without cover.

For more get in touch with the team on 02 9415 1511 or email reception@primeadvisory.com.au.

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A ‘set and forget’ attitude can no longer persist

A ‘set and forget’ attitude can no longer persist

Like mortgages, once upon a time life insurance policies and portfolios would incur little change year-on-year and, as a consequence, it was common to see the ‘set and forget’ practice of many clients and advisors.  This attitude was aided also by the fact that many Australian’s held a vast majority of their personal insurances within the superannuation environment which often meant they were out of sight and mind.

Over the past few years, however, we have seen increasing volatility and some significant premium increases most notably around income protection as well as Life & TPD cover within industry superfunds.  It was evident that insurers had concerns about keeping the income protection product profitable but we’re not sure anyone saw the enormity of losses that were about to ensue.

In the 12 months to March 2020, the industry as a whole reported an after-tax loss of $1.8bn dollars, an incredible transition from a $760m profit in previous 12 months.  Some of this was due to poor investment results in the Dec and Mar quarters due to COVID-19 but much of it was also due to income protection products which were contributing losses in excess of $100m per month.

This can be seen below in our governing body, APRA’s, recent quarterly statistics report to March 2020.

The reasons behind these results are varied but most notably they are due to;

  • Claims experience being far greater than ever anticipated driven largely by an increase in musculoskeletal and mental health claims
  • Extremely low returns on investment. Insurers place their deposits into bonds and other fixed interest products and with interest rates at globally low levels, they are simply not making the returns that were forecasted years before when policies were being priced
  • Regulatory change in the superannuation industry for those with inactive accounts or under the age of 25

It is the trend seen in the graphs above that is worrying however and the reason that APRA has now seen fit to step in to enforce product change with the first having been the abolishment of new ‘agreed value’ income protection policies from the 1st of April, 2020.  This is one of a number of changes that will be seen over the coming 12-18 months (and perhaps beyond) aimed at achieving APRA’s clear mandate for income protection products to become profitable in their own right and not subsidised by lump sum products.

Along with product amendments, the impact most keenly felt for our clients has been the significant premium increases that almost every insurer has already implemented and the likelihood is that more are to come.  Just this week, OnePath announced a 25% increase to IP (Income Protection) premiums for both stepped and level premiums and we’ve seen similar (and some even greater) increases from many other insurers over the past few months.

The importance of reviewing your portfolio

Once, this industry would see little change to policies year on year. This narrative certainly does not ring true for the next 36 months (at least) and our focus at MBS Insurance is strictly to deliver better outcomes and proactively manage our clients’ insurance needs and portfolios.

We have believed for the past few years that the economics of the industry were heading in this direction and whilst we did not necessarily expect the severity of these results, we have been proactively driving discounted product arrangements with our Insurer partners.  This is not only for new clients, but also existing policy holders.

While reduced premiums appear contrary to what the industry requires, we are in the fortunate position of having a scaled distribution business model, with a client base in a desirable demographic.  Moreover, the philosophy of treating Insurers like partners ensures our clients attain better outcomes and we will continue to proactively mitigate the impact of these changes on our clients via negotiated terms and client engagement, to ensure portfolios remain appropriate and necessary.

Whilst we have always sought to disrupt the ‘set and forget’ culture within our industry, this product change and premium volatility has meant that the engagement of our clients at review time has never been greater, which is pleasing.  However, I would implore anyone with personal insurances in place, whether through their superfund or in a retail policy, to ensure that your existing portfolio is reviewed to ensure it remains the most appropriate and competitive portfolio available.

A ‘set and forget’ attitude can no longer persist… Please get in touch 02 9415 1511 or email reception@primeadvisory.com.au.

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A message from MBS insurance regarding the impact of COVID-19.

A message from MBS insurance regarding the impact of COVID-19.

“We have received some enquiries from our clients around the impact of Coronavirus. There are no exclusions to Life Insurance, TPD, Trauma or Income Protection that would prevent payment of a claim related to a Coronavirus for existing retail insurance policy holders.

We have seen and received announcements confirming this for policy holders of AMP, MLC, BT, AIA, CommInsure, OnePath, Zurich, Clearview, TAL and Asteron. Nick Kirwan, Senior Policy Manager at the Financial Services Council stated on the FSC website that no-one should be concerned about their existing life insurance policies.

We are aware of some Industry or Corporate Super Fund policies that do exclude pandemics and/or epidemics. If you or a family member have one of these policies, please reach out to your Adviser.

As is always the case, we are driven to provide protection at a time of need and deliver better outcomes for our clients. If you experience any downtime, it may be the ideal opportunity to have your insurance portfolio reviewed.  If you wish to speak with your Adviser, it will be more efficient to email them directly or at enquiries@mbsinsurance.com.au.

Our team has been set up to work from home, so the business will continue as usual however limited staff members will be answering phones.”

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