Older Australians can now financially protect themselves against critical illness and disability, with a product from Aviva aimed at providing cover for people aged up to 90 years.
Older Australians can now financially protect themselves against critical illness and disability, with a product from Aviva aimed at providing cover for people aged up to 90 years.
According to Rob Donaghy, Aviva’s group director products, marketing and public affairs, this product will appeal to more and more people as the Australian population continue to age.
In Australia, 54% of people aged over 65 have a disability, and an estimated 1.2 million of the over 65s had, or previously had, a disability which had lasted, or was likely to last for at least six months, and which restricted everyday activities[1].
Unlike other insurance providers which only offer cover to age 65, Aviva believes the ageing population in Australia necessitates the provision of cover for older adults.
With Aviva, any Total and Permanent Disability (TPD) or Critical Illness Cover will automatically convert to an Activities of Daily Living based "loss of independent existence" style policy after age 65.
This means, from ages 65 to 90, the definition becomes based on the customer being unable to perform two of the following five activities of daily living, such as bathing and showering, dressing or undressing, eating and drinking, moving from place to pace by walking, wheelchair or with assistance of a walking aid and using a toilet to maintain personal hygiene.
For example
A client purchased a policy when he was age 55 for A$100,000 sum insured for loss of life and disability, (under an own occupation definition and stepped premium which increases at each anniversary).
Now age 64, he pays an annual premium of A$4,259. When he turns 65, because of the new definition, his premium reduces to A$2,745.
“Aviva is really challenging the ageist attitudes of the Australian life insurance industry by offering critical illness and total and permanent disability cover to older people,” said Rob.
Figures from the Australian Bureau of Statistics show over 2.5 million Australians are aged over 65 and are increasingly living to an older age. The average life expectancy for someone over age 65 is now 82.7 years for males and 86.1 years for females[2].
With the aging population and the number of people over 65 still in the workforce (mostly in a part time capacity) steadily increasing[3] there is an obvious need to protect the income of these people.
“Insurance should be made available to as many people as possible, and for as long as possible. There are a lot of people who really need this type of insurance cover and it will certainly provide peace of mind for people concerned that suddenly they are uninsurable because they are over 65,” said Rob.
“At last, there are products available for clients which can actually last into their ‘older age’ – and this is certainly something life insurance should do,” Rob said.
For further information on protection products for the over 65s please contact a financial adviser.
-ends-
[1] Australian Government Actuary 1999, World Health Organisation 2002.
[2] Australian Life Tables 2000 - 2002, Australian Government Actuary.
[3] Australian Bureau of Statistics, Labour Market Statistics, Australia, Canberra, 2003
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 7July 2005). The group has more than 60,000 employees and 30 million customers worldwide.
- The information in this document reflects Aviva Australia Holdings Limited’s 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. Applications to invest in a financial product issued by Aviva, or any of its related entities, must be made by completing the application form attached to the applicable Product Disclosure Statement ("PDS"). A PDS is available from Aviva or your financial adviser. 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.