MLC Insurance Adviser use only. MLC raises the standard in Income Protection insurance

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1 MLC Insurance Adviser use only MLC raises the standard in Income Protection insurance

2 MLC introduces High Income Protection At MLC we re always looking to improve our insurance products so we can continue to meet the needs of both you and your clients. We ve recognised there is now a growing need for more flexible, Income Protection monthly benefits and a need to go above the standard maximum. As a result, we ve led the industry in being the first to offer you and your clients Income Protection up to $60,000 per month on an agreed value basis. Page 01 MLC raises the standard in Income Protection insurance

3 How does High Income Protection work? This is available for MLC Personal Protection Portfolio policies only (it s not available under MLC Life Cover Super). Eligibility White collar professionals only (such as Surgeons, Doctors, Solicitors) where the benefit being written is justified in each of the last two financial years. Please note: Occupations which are predominantly sales-based, and where there are significant bonus and commission payments, may not be eligible for this offer. Entry ages $30,000 $40,000: $40,000 $60,000: Expiry age 65 The cover is guaranteed renewable up to age 65. Monthly benefit Minimum monthly benefit $500. Maximum monthly benefit $60,000 calculated as follows: Earnings replacement ratio Monthly benefit Cumulative monthly benefits 75% of the first $320,000 $20,000 $20,000 50% of the next $240,000 $10,000 $30,000 20% of the remainder up to the maximum $60,000 monthly benefit $20,000 $60,000 CPI Indexation available. The $60,000 monthly benefit is allowed to be exceeded by CPI increases only. Type of insurance Waiting periods available Benefit periods available MLC Income Protection Plus (agreed value or indemnity) or Income Protection Standard (which is indemnity only). Please note: A combination of Standard and Plus can be applied for to make up to $60,000 per month. Over $30,000: one month, three months, 12 months. Over $30,000: two years. MLC raises the standard in Income Protection insurance Page 02

4 How does High Income Protection work? Premium structures available Pricing Stepped or level premiums, or a combination of both. A quote should be requested by completing and ing the Quote Information and Pre-assessment Form to high_income_protection@mlc.com.au. Your remuneration Your remuneration is subject to the following conditions: Commission structures available Responsibility period Over $30,000: Level. 12 months. Page 03 MLC raises the standard in Income Protection insurance

5 Requirements Underwriting All the insurance cover up to $60,000 must consist of MLC insurance. For MLC Income Protection above $30,000 per month, the following underwriting requirements will apply. This is available only on risks accepted on standard rates or on non-standard terms with a maximum of a 75% health loading or one exclusion clause. Medical HIV, Hep B&C, MBA20, FBC including ESR. PSA for male lives over age 50. Mammogram for female lives over age 50. Specialist medical examination as well as MSU and PMAR. Financial Completed MLC Financial Questionnaire. Last two years full personal Income Tax Returns and Notice of Assessment. Last two years full company/partnership annual accounts, including profit and loss statements, balance sheets and tax returns for main trading accounts and any associated entities (trust accounts, service accounts, etc). Full details of Investment Income. Completed statement of personal/family assets and liabilities. Please note Where applicable, an adjustment in terms will be made by a conditional offer of acceptance to your client in the following circumstances. The policy may contain special terms/ conditions to reflect earnings replacement ratios that apply to high benefit policies. In some circumstances, at very high benefit levels for agreed value insurance, the offset relating to Workers Compensation and/or similar legislation will be regarded as unnecessary and will be deleted. In some circumstances, an ongoing income offset clause may apply. Your Underwriter will contact you if this applies. MLC raises the standard in Income Protection insurance Page 04

6 How the High Income Protection process works We understand when you re dealing with high income clients that efficiency is important. Therefore we ve set up a special process for these cases that will help you service these clients effectively. Quoting Pre-assessment Application submission and process Client acceptance You complete the Quote Information and Pre-assessment Form with the relevant client and insurance information. You the Quote Information and Pre-assessment Form to high_income_ protection@mlc. com.au We review the client and insurance information and determine if all the information has been captured and make a pre-assessment decision. We ll ask for any outstanding information from you. We review the information and make a determination if an application for High Income Protection insurance can be submitted. We contact you so you know the outcome from the pre-assessment (eg application not supported, submit application, require more information). Upon successful pre-assessment, we ll send the quote, including the cover sheet (to be sent with the application), to you. You discuss the quote with your client. If accepted by them, you send the quote (including the cover sheet) with the application to MLC. We receive the application and process it as normal. When approved, we ll send your client a Conditional Offer Form (COF) letter, outlining the acceptance terms and amended policy wording. Your client accepts the COF and sends in their signed COF to us. If there are no outstanding requirements, we issue the policy. Page 05 MLC raises the standard in Income Protection insurance

7 Case study 1 Janet has worked for years building up her practice and now earns $1.5 million a year. Up until now she has only been able to obtain the current industry maximum Income Protection insurance benefit of $30,000 per month. However, by insuring with MLC, Janet is now able to take advantage of the much higher benefit of $45,667 per month, which makes a huge difference to her comfort level. Earnings replacement ratio Annual earnings Monthly benefit 75% $320,000 $20,000 50% $240,000 $10,000 20% $940,000 $15,667 $1,500,000 $45,667 This case study is for illustrative purposes only. MLC raises the standard in Income Protection insurance Page 06

8 Case study 2 David earns $2 million a year and hadn t previously considered Income Protection insurance. The main reason being the cover levels weren t sufficient to protect his lifestyle. Now with MLC High Income Protection, David can obtain a higher level of insurance to more adequately protect his lifestyle. Under the new maximum monthly benefit levels, he can get a monthly benefit of $54,000, which is double the amount previously available. Earnings Replacement ratio Annual earnings Monthly benefit 75% $320,000 $20,000 50% $240,000 $10,000 20% $1,440,000 $24,000 $2,000,000 $54,000 This case study is for illustrative purposes only. Page 07 MLC raises the standard in Income Protection insurance

9 Frequently asked questions Question Are all AAA occupations eligible for High Income Protection? How will the over $30,000 per month cases look in My Work Tracker on mlc.com.au? What will the client receive for a monthly benefit in excess of $30,000? What if the client calls the Client Service Centre with queries in relation to High Income Protection? Where on the website is documentation relevant to this offer stored? Can advisers call Underwriting if they want clarification on the High Income Protection Quote Information Form or do they have to the inbox? Will the Financial Adviser Guide be updated with this new feature? Answer Not all AAA occupations will be eligible. Underwriting will determine who is eligible via the information we receive on the Quote Information and Pre-assessment Form. The Income Protection will appear as two coverages, one coverage for the monthly benefit up to $30,000 and another for the monthly benefit over $30,000. Both Income Protection coverages will appear under the same policy number. The client will receive: one policy number one policy schedule one policy document, and the policy schedule will show the two Income Protection components (up to $30,000 and above $30,000) separately. A Conditional Offer Form (COF) will be issued prior to completion of the application and issue of the policy document. The client will be referred to you, their financial adviser. If the client doesn t have one, they ll be referred to Gateway. The Adviser Concept Card, Quote Information and Pre-assessment Form and all other documents are available on the mlc.com.au adviser site under Forms and Brochures. You can call Underwriting in relation to the pre-assessment questions. For general enquiries about the Form itself, you should the High Income Protection inbox. Yes. This is the Addendum to the Financial Adviser Guide. The Financial Adviser Guide itself won t be updated until our next product upgrade. MLC raises the standard in Income Protection insurance Page 08

10 Important information This is published as an information service only by MLC Limited (ABN , AFSL ), who has its registered office at Miller Street, North Sydney NSW MLC Limited is a registered member of the National Australia Group of companies. The information is solely for the use of authorised financial advisers and is not intended for distribution to clients. Page 09 MLC raises the standard in Income Protection insurance

11 MLC Insurance Adviser use only How to contact MLC For more information, call the MLC Adviser Service centre from anywhere in Australia between 8 am and 7 pm AEST/AEDT. If you wish to talk to an underwriter, call the Underwriting Hotline between 8.30 am and 5.30 pm AEST/AEDT or, alternatively, contact your MLC representative. Adviser Service centre Underwriting Hotline Website: mlc.com.au Postal address: MLC Limited, PO Box 200 North Sydney, NSW M1010