BT launches new SMSF insurance service
BT Financial Group has introduced a new policy replacement process that allows clients to move from insurance held in a public offer fund to an SMSF, while retaining the same premium rates.
The level premium policy replacement process, implemented for BT Protection Plans, enables clients to maintain their level premiums for their life insurance, even when the funding method or ownership structure of their policy changes, BT explained.
“For example, a client moving their cover from a super fund on a platform, such as BT Panorama, to an SMSF will retain their original entry age premium rates under the new replacement policy,” said BT.
“This means the customer will pay a lower rate than if their policy were adjusted to reflect their current age.”
The new process, it estimates, will result in a faster turnaround time of less than one week to replace a policy and reduced administration for advisers.
“It also enables clients to continue to benefit from the lower premium rates associated with their original entry age,” it said.
BT Life Insurance head of product Kim Cohen said the new service “makes it simple for advisers to implement recommended ownership changes that meet their clients’ changing needs”.
Since 2015, insurance in superannuation has been tough to navigate in the advice market, particularly since changes affecting TPD and death policies were enacted. Prohibitions on cross-insurance were also confirmed in 2014, which has had knock-on impacts in the years since.
