Life insurance specialist AIA Australia launched a new product feature that will help clients curb costly stepped premium increases for up to 15 years.
Advisers will have greater flexibility in matching premium terms to their clients' needs, with the option to choose a more appropriate period to fix premiums at either five, 10 or 15 years.
Depending on the client's situation and cover chosen, term level premiums can provide significant savings during the initial term and could save them 50% or more when compared to level premiums, according to AIA Australia and New Zealand chief executive Damien Mu.
Mu commented the feature will also assist advisers with client retention.
"When we looked more closely at retention as part of the life insurance framework (LIF), we found that there was a misnomer around the adviser's role. The real reasons customers were cancelling policies were due to changing needs and economic concerns," Mu said.
"With this in mind, we designed term level to help advisers to better match the premium structure to their clients' individual life stages, whether they're buying a house, starting a family, sending their kids to school or satisfying a particular business need."
AIA worked closely with advice partners, in particular with Synchron director Don Trapnell, to test and develop the new feature.
The premium structure is available on life cover as well as linked TPD and/or crisis recovery benefits, including where benefits are taken out through AIA's Superannuation PLUS or Maximiser.