A number of Australians are cancelling their life insurance cover through super on the back of the federal government’s decision to reduce concessional contributions to super, Asteron general manager Jordan Hawke has said.
The lowering of concessional contributions to $50,000 per annum for those over 50 and $25,000 for those under 50 meant consumers had to choose whether they wanted to maximise their super contributions or have those contributions deducted to fund their life insurance cover.
Hawke said the barrier for advisers recommending that clients move their insurance outside of their super was the fact that many insurers required customers to be underwritten again, at an age where it may have a detrimental impact on the cost of insurance cover.
To make it easier for Asteron clients to move their life cover outside of super, Hawke said Asteron had waived the requirement for underwriting to take place again and that no additional information would be sought from those clients who wished to transfer to life cover outside of super.
The offer, which is available through Asteron advisers until 30 June 2010, will be open only to existing clients using some of Asteron’s previous legacy products for their life insurance cover through super.
“For advisers there is ease of transfer, no underwriting required and one simple form to complete. On top of that, hybrid commission is payable when moving clients’ cover outside of super by taking out an Asteron Lifeguard Life Cover ordinary policy,” Hawke said.
Another benefit was that clients could keep their existing premium.
“Without insurance, working Australians, who are unable to work due to illness, accident or injury, are forced to go on pensions in order to survive. For families who are unfortunate enough to face the death of their main income earner, the results can be financially devastating,” Hawke said.
