Fidelity Life has updated its level term product. Level term is widely seen as a key component of more sustainable cover packages for insurance clients – insulating them against the built-in price hikes inherent with a rate-for-age product. The changes Fidelity has made include:
Revised Pricing and Commission
Essentially, a bit lower. How much lower depends on the options you choose. Commission has had to play a part in achieving the reduction, with the base rate for level term now reduced by 20%.
Flexibility
The cover is for life but you can choose any term for the level premium provided it is longer than five years. Although Fidelity suggests to 100, to 70, and to 65 as examples.
Level Premiums
While many level insurance plans allow you to take up CPI increases these will be at the rate applicable when they are taken up. Fidelity now takes a different approach, offering an option to have cover increase 2% each year priced into the initial level premium – the premium doesn’t go up at all, not even by the 2% additional cover. Hence the claim to offer “true level.” It is not exactly the same as linking cover to the CPI, relying somewhat on the long-term price stability we have enjoyed for much of the last 20 years continuing. The Reserve Bank should consider this a vote of confidence.
Built-in Benefits
The product includes terminal illness benefit, financial planning benefit, bereavement support, and future insurability.
Level Premiums for Optional Additional Benefits
A wide range of optional additional benefits are available in level premium format including TPD, Trauma, and Income Protection.
The product is now being quoted on Quotemonster.
You can find out more at this link.