How to Sell Trauma Insurance

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					                           UPGRADE


We’ve upgraded
AXA’s Elevate so
you have an insurance
solution that covers
all bases




Effective 16 August 2010
 An insurance solution
that covers all bases




As every aspiring        In our effort to provide a market-   And our promise of more
                         leading insurance solution that      accessible underwriting, smoother
baseball player knows,   covers all bases for your clients,   administration, empathetic claims
it’s no good covering    we have spent the first half of      resolution, and dependable sales
some of your bases       2010 talking to advisers.            and marketing support, make
while leaving the                                             AXA’s Elevate an ideal package.
                         The latest enhancements to our
others unprotected.      range of award-winning insurance     In addition, AXA’s Elevate was
                         products reflect that feedback       awarded the top honour for its
                         and our willingness to develop       Life and TPD insurance at the
                         our products to continue to          2009 Plan For Life/AFA Life
                         meet the needs of advisers and       Company Of The Year Awards,
                         their clients.                       recognising AXA’s commitment to
                                                              continually developing its financial
                         Upgrades to income protection,
                                                              protection business. AXA’s Trauma
                         life, trauma, TPD and SuperLink
                                                              was also named a finalist in that
                         mean we can offer you and your
                                                              product category.
                         clients a comprehensive and
                         competitive insurance solution.      AXA’s Elevate – Insurance to cover
                                                              all the bases on the journey of life.
SuperLink Simple solutions for complex client needs

WHAT’S NEW         SuperLink extended to                               BENEFITS FOR MY BUSINESS
                   non‑superannuation structures
Our flexible SuperLink insurance option has been extended               An easy way to manage complicated financial plans.
to include non-superannuation structures. As such,
                                                                        A simple solution that saves time and money.
SuperLink plans can now be linked to:
∙ AXA’s Life Insurance Superannuation Plan held:
   • individually, or
   • through our platform superannuation funds                          Mike’s case study
     (Summit, Generations, iAccess and North)                           Mike is a construction project                  This will give Mike the flexibility
∙ AXA’s Life Insurance Plan held by:                                    manager and organises his                       to pay the trauma premiums
   • self-managed super funds (SMSFs)                                   life and TPD insurance to be                    personally, and be free to
   • individuals                                                        provided by his company so he                   receive any trauma benefits
                                                                        can benefit from the associated                 directly without tax implications.
   • businesses or companies                                            tax and salary packaging
   • insurance trusts, or                                                                                               With SuperLink Mike is covered
                                                                        advantages. However, he is
                                                                                                                        for life, TPD and trauma. He
   • family trusts.                                                     also interested in having the
                                                                                                                        gets the cash-flow and tax
                                                                        protection of trauma insurance.
                                                                                                                        advantages of holding his life and
What is SuperLink?                                                      Mike’s financial adviser could                  TPD insurance within a company
SuperLink gives advisers the ability to structure more flexible,        sell him a stand-alone trauma                   owned structure, and he also
tax-effective and cash-flow efficient insurance strategies for          plan, but with SuperLink he can                 gets access to the lower bundled
clients, ensuring award winning protection at a competitive             bundle Mike’s trauma insurance                  premiums for the trauma
price. SuperLink offers clients:                                        with his company held life and                  insurance plan (see graphic).
                                                                        TPD insurance plan.
A flexible structure                                                    Important note: Ownership of insurance by companies and trusts has tax implications on
Insurance plans can be held within the most appropriate                 benefits paid. Insured amounts may need to be grossed up for the tax amount. Advisers
                                                                        should obtain tax advice from tax professionals when structuring insurance through
structure (both inside and outside superannuation and still             companies and trusts.
remain linked.
Lower premiums
SuperLink provides the cost effective pricing of a typical bundled      SuperLink bundled insurance example options*
life, TPD and trauma plan while giving the flexibility to split the
ownership of the insurance components between two owners.
This makes structuring a client’s insurance with SuperLink more
flexible and cost-effective than stand-alone plans.                                             Policy owner 1         Policy owner 2
Tax advantages                                                                                Super                            Individual
                                                                                            SMSF                                 Business
It may be possible to claim tax deductions for premiums paid
                                                                                           Platform
on insurances held within superannuation*. Capital gains tax
may be payable where TPD and/or trauma are owned by other                                 Trust          Life         Trauma
than the insured (or a defined relative). Superlink enables                               Business
flexible, tax effective ownership structures.                                             Individual
                                                                                                                  TPD
Access to funds
Although clients receive the reduced premiums associated
with bundled insurance plans, with SuperLink, trauma and
TPD insurance can be owned individually by the client outside
superannuation so that the conditions of release restrictions
and the trustee discretion decisions of other insurances held
within the superannuation environment do not apply.

                                                                      * There are tax implications for trusts and companies. Always seek the advice of a competent,
                                                                        professional tax adviser.
Income insurance The foundation of any insurance portfolio

WHAT’S NEW        Introducing the Income                  Improved income replacement ratio
                  Insurance Premier Plan                  for high earners All plans
The Income Insurance Premier Plan has been                We have improved our income replacement ratios
introduced to provide more comprehensive cover            for income insurance. The new ratios not only
to more clients. Available to MP, AA, A, B and C          simplify calculations, they enable high income
occupation classifications.                               earners to obtain more insurable income.
                                                          The new ratio is:
Three tier total disability definition                    ∙ 75 per cent of the first $320,000 plus
Income Insurance Premier Plan only
                                                          ∙ 50 per cent of the balance
A new three-tier total disability definition has
                                                          to a maximum of $30,000 per month.
been added to our new flagship Income Insurance
Premier Plan. This definition gives clients the ability
                                                                                  Maximum            Maximum
to be assessed on a duties, hours or income basis,                          monthly benefit     monthly benefit
providing them with more flexibility when it comes        Annual income     (previous ratios)      (new ratios)
to claim time.                                                $300,000              $17,710           $18,750
                                                              $400,000             $21,880            $23,340
Updated partial disability definition                         $500,000             $23,960            $27,500
Income Insurance Premier Plan only                            $560,000             $25,210            $30,000
Our partial disability definition has been broadened          $600,000             $26,050            $30,000
and now offers clients greater financial security.            $700,000             $28,130            $30,000
Clients who are able to return to work in a limited
capacity are able to claim without needing to be
totally disabled during the waiting period. Further
protection is available if a client can only work
                                                          Medical and dental graduates offer
limited hours due to their disability.                    A new offer for medical and dental graduates
                                                          has been introduced, offering them more cover
The new Income Insurance Premier Plan and the
                                                          and security.
added benefits listed above effectively replace the
old Income Insurance Professional Plan, which is          The offer gives new medical and dental
now closed to new business.                               graduates the ability to purchase an agreed
                                                          value income insurance plan of up to $6,250
                                                          per month (including Superannuation Guarantee
                                                          Contributions), without the need to provide
                                                          financial evidence at underwriting stage or at claim
                                                          stage for total disability. When a partial disability
                                                          claim is lodged, proof of pre-disability income must
                                                          be provided.
                                                          We understand that graduates’ incomes increase
                                                          quickly once they are in the workforce, so we
                                                          are flexible in providing them the protection they
                                                          need upfront.
    Life, trauma and TPD Enhancements                                                          In addition
WHAT’S NEW                                                                                     AXA’s upgrade of benefits
                                                                                               AXA will upgrade existing policies and
    New and improved         For selected conditions:
                                                                                               pass back any product improvements,
    trauma definitions       ∙ Rheumatoid arthritis (new)    ∙   Muscular dystrophy            made now and in the future, where
                             ∙ Advanced diabetes (new)       ∙   Parkinson’s disease           there has been no increase in
                             ∙ Multiple sclerosis            ∙   Alzheimer’s disease and       premium. Importantly, clients will not be
                                                                 other dementias               detrimentally affected by any upgrade.
                                                                                               We recently upgraded 115,000 life,
    Improved                 Children’s Trauma has been extended to include death and
                                                                                               TPD and trauma policy holders so they
    Children’s Trauma        terminal illness cover.
                                                                                               now have the benefits and features
                                                                                               of the current AXA’s Elevate products.
    Life buy-back            ∙   Removal of the 12-month waiting period for life buy-back      In the event of a claim, the claim will
    and trauma                   (TPD option).                                                 always be assessed against the most
    reinstatement            ∙   Changes to the waiting period rules for life buy-back         favourable definition applicable to your
    enhancements                 (trauma option). The 12-month waiting period now begins       clients’ insurance cover. The client has
                                 on the date the claim form is received by AXA and not the     the best of both worlds, ensuring they
                                 date the claim is paid. This means clients are able to buy    are comprehensively protected.
                                 back their life insurance earlier.
                             ∙   Trauma Reinstatement option waiting period rules brought      AXA’s Insurance                     INDUSTRY
                                 into line with the life buy-back (trauma option) above.
                                                                                               Definitions Library                     FIRST

    Update to TPD            Maximum TPD sum insured limit has been increased to               We have also recently launched an
    maximum sum              $5 million. This means high net-worth clients and business        Insurance Definitions Library (IDL).
    insured limit            owners now have access to higher levels of cover for both         The IDL allows advisers to input their
                             any or own occupation TPD.                                        client’s policy number or name and
                                                                                               produce a report that provides the
    Premium/Pricing          ∙   Income Insurance premiums generally reduced.                  definitions relevant to the client’s
    review across all ages   ∙   TPD premiums generally reduced including own occupation.      policy. This makes comparing policies
                                                                                               simple and provides up-to-date policy
                             ∙   Minor premium increases to Trauma Plus.
                                                                                               information for clients. The IDL is
                             ∙   Some reductions in level premiums for Life, TPD and
                                                                                               available at axa.com.au/adviser.
                                 Trauma post age 40.
                             ∙   Improved large case discounts.
                                                                                               Continuing to enhance
BENEFITS                                                                                       All of the key enhancements mentioned
                                                                                               in this brochure build on the updates
    For my clients           ∙   More comprehensive protection.                                made to AXA’s Elevate in April 2010:
                             ∙   Increased flexibility for insurance strategies.               ∙ AXA introduced new Blended premiums.
                             ∙   More cover, more benefits and more flexibility when           ∙ AXA’s Elevate integrated onto the
                                 clients need it most.                                            Summit platform.
                             ∙   A relevant, market-leading insurance solution.                ∙ Large case discounts increased
                                                                                                  for clients with sums insured of
    For my business          ∙   An enhanced client-value proposition.                            $2 million or more.
                             ∙   A comprehensive income insurance solution, forming a
                                                                                               ∙ Simplified children’s trauma option.
                                 solid foundation for a comprehensive risk management
                                 package to complement clients’ financial plans.               ∙ Easier conversions and transfers
                                                                                                  (takeovers).
                             ∙   The ability to provide market-leading benefits and services
                                                                                               ∙ AXA’s suite of documents updated
                                 for clients at a competitive price.
                                                                                                  and simplified to make applications
                             ∙   The ability to provide effective cash-flow insurance
                                                                                                  and processing even easier.
                                 solutions for clients.
                             ∙   Underwriters who understand your business because
                                 they are state-based and happy to discuss specific
                                 client cases.
                             ∙   An efficient and empathetic claims resolution process.




    Where can I get                     Call a business development representative on 1800 655 655,
    more information?                   or visit axa.com.au/adviserinsurance
               axa.com.au/adviserinsurance
               1800 655 655




               Important information
               This publication has been prepared for distribution to professional financial
               advisers only and is intended to provide factual information. It is not
               intended to be distributed or made available to existing or potential
               product holders. AXA Australia does not authorise the distribution of
               this publication to, or use by, existing or potential product holders.
               Existing or potential product holders should base their decision on
               the detailed information contained in the current Product Disclosure
               Statement (PDS) and should consult their financial adviser. Applications
               for purchase of AXA Australia products will only be accepted on receipt
               of an application form accompanying a current PDS. The National Mutual
               Life Association of Australasia Limited and its associates derive income
               from issuing interests in the products, full details of which are contained
               in the PDSs. This information is provided for persons in Australia only and
               is not being provided for the use of any person who is in any other country.




                                                                                          The National Mutual Life Association of Australasia Limited
                                                                                                       ABN 72 004 020 437 AFS Licence No. 234649
09470-07-10S




                                                                                                                      Member of the Global AXA Group
                                                                                        Registered Office: 750 Collins Street Docklands Victoria 3008
                                                                                                                                          axa.com.au

				
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