Specialist life insurer NobleOak’s Premium Life Direct product will give SMSFs access to high-quality cover that is flexible and compliant at a more competitive price to similar offerings.
While the new insurance aimed to target direct retail customers, it was also designed to address SMSF requirements, NobleOak chief executive Anthony Brown said.
The life and total and permanent disability (TPD) benefits were Superannuation Industry (Supervision) (SIS) Act compliant for SMSFs, allowing customers to hold that coverage within their SMSF, Brown said.
“The product also enabled customers to move their insurance out of the SMSF if their needs and circumstances changed, without cancelling their policy and reapplying for cover,” he said.
“We believe this product is transformational, offering clients far better value than what is currently available.
“It provides the same level and quality of cover you can access through a financial adviser, but at a significantly lower cost as adviser commissions and mass advertising costs are not built into the premium – this saves our clients an average of 20 per cent every year compared to similar products available from other leading insurers.”
SMSF trustees can choose up to $15 million in life insurance and $3 million for TPD insurance.
In addition, “any occupation” covered for TPD was matched to SIS requirements and life cover to the age of 99 was guaranteed renewable.
Further, Premium Life Direct provided accidental death cover at no additional cost during the application assessment period, as well as a 5 per cent discount for annual premium payments.
The policy is backed by the third largest global reinsurer, Hannover Life Re.