Aviva Australia, a provider of life insurance, investments and superannuation, has announced an improved benefit for wealthy individuals who have a high level of personal debt.
The range of personal debt commitments borne by many high income earners include a home mortgage, personal equity or overdraft facilities, residential and commercial property investment linked loans, car leases or loans, private school tuition fees and loans in their name, family trust or company for which they are personally liable.
With debt replacement option the payment in the first 12 months may be increased significantly with a small reduction in the ongoing monthly benefit thereafter.
Natalie Eckersall, general manager wealth protection products, said that Aviva’s debt replacement option, which is available with its income protection gold product, will provide payment of a higher monthly income to claimants during the first 12 months of injury or illness.
Mr Natalie also added: Usually in the first 12 months of injury or illness, lifestyle adjustments have to be made to meet personal debt commitments.