Welcome to the March edition of TOWER Talk.
Providing you with current information concerning TOWER,
our products and the industry.
In this edition:
TOWER Australia Product Update
On 1 April 2005, TOWER will implement some refreshing enhancements to the TOWER Protection Policy. To read more, click here.
Super Fast Facts
Quick facts and updates on Superannuation to keep you informed. To read
more, click here
Streamlining the New Business confirmation process
Less Paper. Less Cost. Less Hassle.
We are pleased to advise that effective 11 April 2005 you will be receiving a Policy Issue Confirmation each time policy documentation is issued to your clients. To read more, click here.
Canberra Corner
For an easy to read update on the progress of legislation through parliament,
click here.
TOWER Australia Product Update
On 1 April 2005, TOWER will implement some refreshing enhancements to the TOWER Protection Policy. The product review focuses on refining the existing product range and broadening the scope of our price competitiveness. Changes include:
- Enhancements to policy features for the Life Protection Plan and Crisis Protection Plan.
- Addition of the Scheduled Illness Option to the Income Protection Plans.
- New bundling discount and packaging incentives.
- Re-shaping of premiums with an increased focus on younger ages and the female market, resulting in competitiveness across ALL ages.
- Underwriting initiatives aimed at making it easier to complete business.
We hope that these initiatives will make it easier for you to do business with TOWER and your clients.
You can find further details of each initiative in the TOWER risk review information pack which includes a new TOWER Protection Policy Product Disclosure Statement and Adviser Manual, or speak to your TOWER Sales Manager.
1. On 14 March 2005, the Government released the Super Choice regulations and the standard choice form. The regulations state that the minimum level of death cover that needs to be offered by the default fund can either be:
- $0.50 per week (for employees aged less than 56) or the equivalent monthly or annual premium rates, or
- the following aged based benefit
Age Range |
Level of Life Insurance |
|
From 20 – 34 |
$50,000 |
|
From 35 – 39 |
$35,000 |
|
From 40 – 44 |
$20,000 |
|
From 45 – 49 |
$14,000 |
|
From 50 – 55 |
$7,000 |
In addition, the regulations outlined some exemptions where the default fund is not required to offer the minimum level of insurance as per the regulations. To view the regulations and standard choice form please click here.
2. The Minister for Family and Community Services recently issued a media release which outlines the increases to pension and adult allowance rates which commence from 20 March 2005. To view the press release please click here.
3. ASIC has recently released a Media Release titled “How Superannuation Exit Fees Could Affect You”. In this media release Jeff Lucy stated “The best option might well be to stay in the fund until the exit fee runs out”. To view the media release please click on the following link
http://www.asic.gov.au/asic/asic_pub.nsf/byheadline/05-65+How+superannuation+exit+fees+could+affect+you?openDocument
Streamlining the New Business Confirmation Process
Less Paper. Less Cost. Less Hassle.
We are pleased to advise that effective 11 April 2005 you will be receiving a Policy Issue Confirmation each time policy documentation is issued to your clients.The Policy Issue Confirmation will replace copies of the client welcome documentation (ie cover letter, policy schedule, policy certificates), saving you considerable amounts of paper from your fax machine, especially if your clients hold more than one benefit.
The Policy Issue Confirmation contains a one page snapshot of the important client details including policy number, benefit type, benefit amount, premium frequency and premium due date.
You can still view the complete Policy Documentation issued to your client by logging onto the TOWER Adviser website www.toweradviser.com.au and viewing under the ‘Client Correspondence’ tab.
To view a sample of the Policy Issue Confirmation, click here. If you have any queries please contact your Sales Manager.
There are many changes made to legislation that may affect you and your clients month to month. For an easy to read update on the progress of legislation through Parliament, click here.
Disclaimer
This document has been prepared to be used by financial planners and advisers only. It is not to be provided to individual clients. The information contained in this document is general information only and cannot be considered to be financial advice. The information does not take account of the investment objectives, financial situation or particular needs of any particular client. To the extent permissible by law, TOWER Australia Limited (ABN 70 050 109 450, AFSL 237848) and its related companies (TOWER) specifically disclaims any liability that may arise for any direct, indirect, incidental, consequential or special damages that may arise from the access to or use of this document. No liability is accepted by TOWER for errors and omissions or for loss or damage suffered as a result of reliance on this document.
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TOWER Australia Ltd
A.B.N. 70 050 109 450
AFSL Number 237848