TOWERTalk is sent from the domain "au.towerlimited.com". Please use this domain name when configuring e-mail or spam filter rules. Click here to view as a web page.

Vol. 5: 3 July, 2006

Feature Article

Premium Rate Changes for Disability Income Protection Insurance

Why are premium rates changing?

As mentioned in the April edition of TOWERtalk, the second phase of the disability income protection rate increase is underway. TOWER hasn’t increased its rates in four years and in order for us to maintain a sustainable future and to continue paying genuine claims, the time has come where we have had to increase our rates. Over the years we have experienced an increase in claims being made and in order to manage this increase, product pricing must go up.

When is the change effective?

The rate change is effective from your clients’ next policy anniversary after 1 August 2006 for all disability income protection products as listed below.

What products are affected?

  • All FAI disability income protection products prior to Series 20 and TOWER series 17: 15% increase
  • TOWER disability income protection products Series 20 to 22: 5% increase
  • TOWER Income Protection products Series 23 to 25: new business rates apply

Are both level & stepped premiums affected?

Yes.

When will policyholders be advised of the changes?

Policyholders receiving an increase greater than 15% and $350 per annum will be contacted by phone, if permission is granted by the adviser.
Following this, all increase clients will receive a letter outlining the premium rate changes.

View the sample letter here »

A paragraph will also be inserted in the affected policyholders’ Renewal Notices to remind them of our previous correspondence.

Letters will be sent on a quarterly basis as follows:

Date letter will be sent Corresponding client anniversary months
1 July 2006 August, September and October
1 September 2006 November, December and January
1 December 2006 February, March and April
1 March 2007 May, June and July

Who do I contact if I have any questions?

If you have any questions about the premium rate changes please contact your State Sales Team.

TOWERnet & E-application Update

An updated version of TOWERnet is now available on the TOWER Adviser website.

The update includes the following changes:

  • New tax rates that apply from 1 July 2006 have been loaded into the quotation software for Income Protection quotes.
  • The TOWER E-application form has been resized. This will allow users with smaller screen resolutions full access to this application.
  • Navigation in E-application has been improved with new toolbar buttons.
  • Saved E-applications can now be accessed from the TOWERnet main menu under Tools & Utilities.

Thanks to all Advisers for their suggestions and feedback. We are committed to continually improving TOWERnet and E-application.

To download the updated version of TOWERnet & E-application, click on Automatic TOWERnet Update on the TOWERnet main menu and follow the instructions.

Alternatively, please follow the steps below:

  1. Go to www.toweradviser.com.au
  2. Select the TOWERnet tab
  3. Select TOWERnet 6.0 update (includes all updates)
  4. Select Download

For support, please call the TOWERnet helpdesk on 1800 815 530 or email towernet@au.towerlimited.com

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.

 

Further Information

Login to the TOWER adviser website to obtain other information on TOWER products, investments, or technical news. All current PDS's are on the site and can be printed off for sales use.

Can't Log on to TOWER Adviser?

If you have forgotten your password, visit toweradviser.com.au/forgotPass.asp. Alternatively, send an email to the webmaster with your details and we will endeavour to look into your account.

Contact Us

Have a comment or question about our newsletter? Send an email to:
towertalk@au.towerlimited.com.

To Subscribe to TOWERTalk, visit toweradviser.com.au/Loginrequest.asp.

To unsubscribe from this newsletter, email your name and details to towertalk@au.towerlimited.com.

Copyright © 2006 TOWER Australia. All Rights Reserved. A.B.N. 70 050 109 450 AFSL Number 237848