AIA Australia has noticed a trend towards flexible working hours, and the need to recognise the work of homemakers. An increasing number of Australians now work part-time or casual hours, and this can make a significant contribution to the financial security of families.
"As part of our continual improvement process, we take a step back and ask ourselves and our adviser partners, what are the issues facing Australians on a day to day basis and how can we support them in their time of need?” said AIA Australia's chief marketing officer, Tim Tez.
“These days there are mounting financial pressure on families of all shapes and sizes and life insurance has a critical role to play in supporting Australians as their circumstances change – be that health or work related.”
This led AIA Australia to enhance its Total Permanent Disability (TPD) and Income Protection (IP) benefits to include eligibility for those clients who work part-time or casual hours, or are engaged solely in home duties.
Under the new enhancements, people working at least 15 hours per week are TPD eligible, and those working 20 hours per week for “white collar and professional occupations” are eligible for IP. AIA Australia has also introduced IP for people working in home duties to provide a monthly income stream for the family if they become totally disabled.
In addition to working more flexible hours, Australians' increasing longevity, is also changing the face of Australia's workforce. The need for many baby boomers to continue working past the traditional retirement age of 65 in order to generate adequate retirement savings, has seen AIA Australia extend its Income Protection benefit to include workers up to the age of 70.
New changes also include true level premiums to age 70 for life cover, TPD and crisis recovery benefits. True level premiums use the client's age at their next birthday at the time the cover commenced to calculate the benefit indexation increase in premiums. This differs from level premiums which use the client's age at next birthday at the date of the increase, meaning a client's premium will rise more steeply, than the more gradual premium rises from a true level premium methodology.