Saturday, 23 March 2019

BT overhauls life cover limits and definitions

BT has announced a raft of enhancements to its Protection Plans products, including updated medical definitions and increased life insurance cover for farmers and homemakers.

Previously capped at $3 million, farmers will now be able to access up to $5 million in total permanent disability cover. Meanwhile, the amount of Term Life and TPD cover made available to homemakers has increased to $2.5 million and the limit on living insurance has been raised to $1.5 million.

BT has also increased sum insured limits for other occupations under its Professional Package, such as doctors and accountants.

Further, BT is streamlining the underwriting process for under-45 year applying for an income product by removing medical tests when applying for up to $15,000 a month.

BT head of product, life insurance Kim Cohen said: “At BT, we’re committed to reviewing our products to ensure that our offer includes the most up-to-date and relevant features and benefits for our clients.”

“To deliver even greater value, we are making life insurance simpler and more accessible, by streamlining the underwriting process so it’s easier for clients to obtain the cover that’s right for them,” Cohen said.

BT aims to provide clients with access to greater levels of protection and certainty should the unexpected happen, she added.

The insurer has also made changes to some medical definitions to reflect the latest developments in clinical terminology and medical advancements, and provide policyholders with greater clarity when making a claim.

“For example, the angioplasty advancement benefit no longer requires a six-month wait between procedures, allowing multiple partial Living insurance benefit claims for different angioplasty events. In addition, the severe burns definition now clearly applies regardless of the cause of the burn to reflect updated medical terminology,” BT said.

BT will also introduce streamlined waiting period requirements for income protection policies; removing requirements for clients to provide ongoing evidence of actively, full-time employment after a TPD Continuation Benefit has been exercised at age 65; and removing exclusions relating to Children’s Benefit and Child Support Benefit.

Finally, as of 28 August 2018, a two-year premium rate guarantee will be applied to all new policies. However, this will not be in relation to standard increases or customer-initiated changes.

Separately, BT Financial Group announced it has added Challenger annuities to its Panorama platform.

The group has also introduced a new BT Cash Management Account Saver with no transaction or administration fees, also available on Panorama. It attracts an interest rate of 1.5%.


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