AIA Australia's Retail Insurance Short Form Underwriting initiative enables advisers to transfer an eligible client's existing insurance cover to an AIA Priority Protection for Platform Investors Retail contract, only requiring the completion of a streamlined four-question Personal Statement.
Retail insurance short form underwriting initiative
ARTICLE
2 min read
AIA Australia’s (AIAA) innovation has been designed to overcome barriers faced by financial advisers and clients whereby multiple super accounts are often retained in order to preserve insurance cover. In most cases, when an adviser is transferring a client's superannuation into a new wrap platform structure, they retain a nominal balance in the former fund to preserve default insurance cover.
While this practice maintains the client’s insurance, it results in multiple super accounts and associated fees eroding balances. This process also often encounters administrative issues and faces the ongoing risk of default cover automatically being cancelled if an account balance falls below $6,000 due to Protect Your Super and Putting Members First legislation.
The AIAA Retail Insurance Short Form Underwriting pathway enables the integration of an AIAA retail policy within the destination wrap platform thereby reducing the administrative burden for the practice accordingly.
In order to qualify for a transfer of insurance via this short form underwriting pathway, the client must:
- Have existing Life, TPD and/or Income Protection cover in place
- Apply to transfer this existing insurance cover to an AIAA PPPI policy on like-for-like sum insured terms subject to a cap of $350,000 (Life/TPD) and $5,000 per month (Income Protection)
- Be under 55 at time of application
- Complete a four-question Personal Statement within the short form application form
AIAA's new Retail Insurance Short Form Application Form will be available through the AIA Adviser Portal. Terms and conditions apply. Advisers who would like to learn more can speak to their AIAA Client Development Manager, or alternatively email au.grouptransfers@aia.com for assistance.
You can also get the key callouts in the comparison between risk-only super and platform held insurances with our 'Insurance cover held on platform' Did you know article below.
Priority Protection for Platform Investors is available through the following platforms
