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Aug 06 - Australia: Does Australia's life insurance need first aid?

Some insurance cover has not kept up with modern medical advances and patients are missing out on financial security, according to a leading insurance specialist.

Aviva's Rob Donaghy, group director - products, marketing & public affairs, said: "Many superannuation funds provide excellent life insurance, but they fall short for people who survive critical illnesses such as heart attacks or cancer."

Rob explained that more people are surviving critical illnesses. "Only 10 or 20 years ago they would be seriously disabled, or even die," he said. "With medical advances the chances of survival are much higher.

"Now, more than ever, cancer is not the end of the road," he said. "But the last thing you need on your mind are financial worries while you are fighting a serious illness. The consequences can remain financially crippling long after a physical recovery."

Many Australians have life insurance through their superannuation fund. These funds generally cover death, total and permanent disability and, sometimes, income protection (also known as salary continuance).

"But what about financial protection for critical illnesses, such as cancer, heart surgery or even Multiple Sclerosis?" said Rob.

"Even when super funds offer income protection, generally the member has to be off work for at least six months before they begin to receive entitlements. This means the vast majority of sufferers might not receive a benefit at all to cover their costs and potential loss of income. Even breast cancer patients now are often not off work for as much as six months."

Aviva has the product to extend your death and disability cover. Protectionfirst covers a range of critical illnesses including skin cancer and breast cancer.

Skin cancers account for around 81% of all new cancers diagnosed each year in Australia[1] while one in 11 Australian women is likely to have breast cancer.[2]

"Skin cancer is a major health challenge for Australians and should not be overlooked. The next most common cancer for women is breast cancer. In terms of numbers, these conditions are worrying omissions from the insurance provisions that most Australians have in place," said Rob.

"You take out insurance for your home and contents and you insure your car. Arguably insuring yourself comprehensively is more important than any of these."

He added: "The Protectionfirst policy from Aviva also offers a unique feature that underlines our care for our critical illness clients; a whole-person treatment plan involving the very best international medical experts to help in your treatment."

Upon diagnosis and a critical illness claim being paid, Protectionfirst customers can be referred to an international panel of doctors and medical institutions for personalised advice.

This Critical Illness Care Benefit is standard with all new Aviva critical illness contracts and available at no extra cost.

Rob said: "It is the best customised service we can offer our customers. It highlights Aviva's focus on personalised care."

Aviva's Protectionfirst insurance product is available through financial advisers.

-ends-

[1] http://www.cancer.org.au/content.cfm?randid=960742
[2] http://www.nbcc.org.au/bestpractice/statistics/

For further information please contact:
Simon Morgan
Group General Manager, Public Affairs
Phone: (03) 9829 8892
Mobile: 0407 966 632

Notes to editors:

• Aviva Australia is a group of two specialist financial services companies: Navigator and Norwich Union Life Australia Ltd. Portfolio Partners is the Australian funds management arm of Aviva plc. Through these companies we provide products and services in the areas of wealth creation and wealth protection for more than 300,000 customers throughout Australia.
• Globally, Aviva Australia is part of Aviva plc, the world’s sixth largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
• Aviva is a leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$78.6 billion, and more than A$645 billion of assets under management (as at 7 July 2005). The group has more than 60,000 employees and 30 million customers worldwide.
• The information in this document reflects Navigator Australia Limited's ('Navigator’) ABN 45 006 302 987 understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person and it is not a substitute for professional advice. A PDS is available from NULIS or your financial adviser. Applications to invest in investment product(s) through the investor directed portfolio service ("IDPS"), operated by Navigator, must be made by completing the application form attached to the applicable IDPS Guide Offer Document and Investment Allocation Authority. Before making an investment decision on the basis of the information above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the information is appropriate in the light of their particular investment needs, objectives and financial circumstances. Aviva does not receive any remuneration in relation to the provision of information available from this press release which is of a general nature only.