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Good news from MLC Insurance

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MLC's upgrade philosophy is different to that of many of its competitors – it has only one product series unlike its competitors who may have several versions of their products. This means that all clients (where applicable), benefit when MLC upgrades or improves its product.

We are pleased to be able to inform you that:

MLC's Income Protection Plus product has again been awarded Income Protection product of the year by Asset Magazine.

Further, from 21 April 2008:

  • all premiums on policies that are written on a level premium basis on Life Cover for ages up to 55 will receive a reduction in their premiums of between 8-14 per cent. 
  • all premiums on policies that are written on a level premium basis on TPD as an extension to Life Cover for ages up to 65 will receive a reduction in their premiums of between 8-10 per cent. 
  • Overall, 13,500 policyholders will receive a discount on their Level Premium with their lump sum policy. 70 per cent of MLC's level premium customers with a lump sum policy will receive a rate reduction of at least 8 per cent. 
  • There has also been an increase to the Critical Illness (covering extensions and stand-alone benefits) Large Case Discount for both stepped and level premiums policies of between 0-10 per cent for sums insured, greater than $500,000.

Although our clients on occasion are frustrated by the stringent process applied by MLC during underwriting, it is important to understand that:

  • Application time is the only time for the Insurer to set terms.
  • Life risk Insurance policies are non-cancellable. Therefore, on the basis of one personal statement and one series of tests and other medical evidence, the Underwriter is committing the Insurer to the contract for possibly up to 30 years (and more), based on the original acceptance terms.
  • Without stringent and effective underwriting, insurance would be prohibitively costly.

The recent price reductions (as noted above) are the upside of this approach.

MLC Insurance clients impacted as above should receive notification of these premium changes (if applicable) on the anniversary date of their policy.


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