MLC Insurance today announced it will cut premiums for two of its key life insurance products by up to 15 per cent, effective today.

David Hackett, Executive General Manager, Insurance, said "At MLC, we know that every dollar counts for Australian families, so we're making our insurance options more affordable."

Effective from 23 November 2015, stepped premiums for life cover insurance, as well as total and permanent disability (TPD) extension insurance, will fall by 15 per cent for new customers at, or when they reach 45 years of age or over on the MLC Insurance and MLC Insurance (Super) products.

MLC will also be reducing stepped premiums rates for life cover insurance and TPD extension insurance for new customers at or when they reach between 40-44 years for MLC Insurance and MLC Insurance (Super). These customers will receive a 2.5 per cent cumulative rate cut each year up until 45 –which in total will represent a full 15 per cent saving. From age 45 onwards, the 15 per cent rate cut will apply.

“With many insurance premiums increasing as you get older, a 15 per cent rate cut from 45 years of age represents a significant saving.’’

“This will help more Australians to keep life insurance for longer, which is an important component in helping to save for retirement,’’ said Mr Hackett.

Over the past 12-months, MLC has announced a number of new initiatives to improve customer and adviser experience, including:

• removing insurance policy fees in an effort to improve affordability, particularly among younger customers
• increasing our multi-cover discount to a maximum of 30 per cent
• extending our TPD optimiser
• introducing insurance premium payments by partial rollovers.

“Today’s announcement represents the next step towards delivering on our goal of making life insurance more affordable and accessible for more Australians.’’

Mr Hackett said the rate reductions will make MLC significantly more competitive in the marketplace, and put us in a strong position to win new business.

“We are confident these changes, which come off the back of our partnership with Nippon Life and our recent innovation with MLC On Track, will be well received by advisers and customers.’’

Research conducted by KPMG for the Financial Services Council shows that approximately 11.5 million working Australians are underinsured, and 19 per cent of families do not have any life insurance.