MLC Life Insurance

MLC has been protecting the lives of Australians since 1886. They now have over 1.4 million customers, making them Australia’s fourth-largest life insurance provider. MLC provides its customers with a wide range of insurance products to choose from, including Life Insurance, Total and Permanent Disability (TPD) Insurance, Income Protection, and Critical Illness insurance.

Published July 3, 2020

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Types of Life Insurance

Is MLC the right life insurance company for you?

MLC is a fairly large, reputable and financially stable company with over 130 years experience in the insurance industry. They are partly owned by Nippon Life, one of Japan’s largest life insurance companies and the National Australia Bank (NAB), both very and reputable companies.

You may want to compare MLC with some of the other reputable insurance providers to see which company offers the best products and prices to best suit your requirements.

Compare MLC Insurance Australia to other major life insurance brands.

MLC Life Insurance is ranked as the fourth largest provider in Australia, with a market share of 11.6%. According to the Roy Morgan Single source from July 2018 to July 2019, MLC had a customer satisfaction rating of 67%, which puts them firmly in the middle of Australian Insurance companies.

About MLC

MLC started as The National Mutual Life Association of Australasia Limited in Melbourne in 1869. In 1907 it merged with The Citizens’ Life Assurance Company Limited to form the Mutual Life and Citizen Assurance Company, also known as MLC.

In 1985, they became a subsidiary of a multinational company called Lend Lease before being taken over by the National Australia Bank in 2000. There was even more growth in 2009 as National Australia Bank acquired Aviva for $825 million and merged it with MLC. In 2016, 80% of MLC’s shares were acquired by Nippon Life, the largest insurance company in Japan by revenue.

MLC have over 130 years experience in the Australian Insurance Industry MLC has grown from strength to strength over the years and offers several insurance packages to suit different budgets and customer needs. They also help their customers by providing them with access to their wellness program, MLC On Track that generally offers clients a discount on their premium if they keep track of their steps and meet their weekly step targets. They also have an exclusive service called MLC Best Doctors that gives customers access to leading health care professionals if they need a second opinion regarding a diagnosis or treatment for no additional cost.

Financial Ratings

Financial ratings and claims statistics are generally a good way to determine if an insurance company is financially stable and can pay out claims.

According to the Standard and Poor’s Financial Strength report (January 2020), MLC was given an A+ rating. This is used as an indicator to measure an insurers creditworthiness and financial security which then, in turn, will determine the ability of the insurer to pay out claims now and in the future.

TAL also have a reinsurance treaty agreement with Pacific Life Re, contributing further to their financial stability.

MLC customers gain access to a network of over 50 000 medical professionals. MLC is a company that is regulated by the Australian Prudential Regulations Authority (APRA) in accordance with section 21 of the Life Insurance Act. APRA regulates and determines how a company is to manage their financial risks to ensure that policyholders can be paid if they needed to make a claim, even in the event that the company were to experience financial difficulty.

MLC Insurance Policy Options

MLC offers its customers several packages to protect themselves against risk, including Life Cover, Income Protection, Critical Illness, TPD Insurance, Business Expenses Insurance and Chid Critical Illness Insurance.

Many of the packages have different tiers to suit people’s budgets, requirements, and lifestyles. They are also customisable with extra benefits available at an additional cost.

MLC packages are designed for many demographics, with most products having an entry age of 16 or 19 and ending between 60 and 65 depending on the product chosen.

Life Insurance

MLC Life cover generally pays a lump sum payment in the event of terminal illness diagnosis or death. Your beneficiaries may use the money for a range of things, such as settling medical bills, paying outstanding debts, or supporting their current lifestyle.

Entry Age: 16 years old to 70 years, depending on the premium structure and premium type- stepped or level premium.
Expiry Age: 74 years old (Inside super), 100 years old (Outside super).
Minimum Cover: $25,000
Maximum Cover: No maximum amount, but special terms may apply to benefits greater than $15 million.

TPD Insurance

TPD (Total and Permanent Disability) Insurance offers you a once-off payment in the event that you were to suffer a total and permanent disability. It generally covers illness or injury that could prevent you from working on your own or any other occupation. The payout can typically be used to support your family, pay medical bills, or adjust to new lifestyle changes that may occur.

Entry Age: 16 years old to 60 years old
Expiry Age: 65 years old to 100 years old depending on the premium structure and if it is linked to other policies.
Minimum Cover: $25,000
Maximum Cover: $3 million, $2 million if linked to Critical Illness and $5 million for professional occupations such as surgeons, solicitors and accountants.

Trauma Insurance

Also known as Critical Illness insurance, this type of insurance typically pays out a lump sum payment if you have a health condition that’s deemed to be critical as listed in the MLC Life Insurance PDS such as heart attack, cancer or stroke for example. The payments can be used for a variety of reasons such as to settle medical bills or assist in mortgage repayments.

Entry Age: 19 years old to 60 years old
Expiry Age: 75 years old
Minimum Cover: $25,000
Maximum Cover: $2 million

Income Protection

MLC Income Protection Insurance typically pays out a part of your income if you are incapable of working due to injury or sickness. Income Protection generally gets paid as a monthly benefit.

Entry Age: 19 years old to 60 years old (Benefits up to $40,000), 19 years old to 55 years old (Benefits from $40,000 to $60,000).
Expiry Age: 65 years old to 70 years old, depending on your premium structure (inside or outside super).
Minimum Cover: $1500.00
Maximum Cover: $30,000 a month to $60,000 a month for certain occupations. Refer to the PDS for a full list of eligible occupations.

Business Expenses

Business Expenses Insurance typically helps business owners and partnerships to meet their business expenses like rent and electricity if they are unable to work due to an accident or health-related problems. The money can be used to keep your business running while you can’t work.
Entry Age: 19 years old to 60 years old.
Expiry Age: 65 years old
Minimum Cover: $1500.00
Maximum Cover: $60,000 a month

Child Critical Illness Insurance

Child Critical Illness Insurance provides you with assistance in the event that your child was to become critically ill or die as a result of an illness as specified in the PDS. It can only be applied for if the parent holds one of the insurance policies listed above.

Entry Age: 3 years old to 18 years old
Expiry Age: 21 years old
Minimum Cover: $10 000
Maximum Cover: $200 000

We make it easy for you to compare policies online with our powerful comparison engine.

Buy with confidence today for peace of mind tomorrow.

Does the company provide value for money insurance?

Whether MLC provides value for money depends on several factors, such as your budget, requirements, and lifestyle choices. They are a very reputable company with a variety of competitively priced products to suit a wide range of demographics. You may want to compare them with other leading brands to see which one best suits your requirements and budget.

Pros and Cons

Pros

  • Worldwide cover: The policy is valid anywhere in the world
  • 24/7 Protection: The policy is valid anytime night and day, seven days a week.
  • Discounts: You can generally get discounts of up 5% through the MLC On Track program.
  • Cooling off Period: There is a cooling-off period of 14 days in which you can cancel your policy and get a refund. The cooling-off period is typically valid if you haven’t made any claims during the timeframe.
  • Guarantee of Upgrade: Future benefits that may improve your policy will be passed on to you as long as the premiums stay the same.
  • Access to MLC Best Doctors: This award-winning service gives customers access to over 50 000 medical health professionals from Australia and all over the world if you required a second opinion concerning diagnosis or treatment. This service comes at no additional cost to customers and can be used as many times as they like.

Cons

You may want to check if there are any exclusions that may prevent you from claiming certain circumstances. An example is how you cannot make an accidental injury claim for an injury or sickness claim if you’ve already claimed under your TPD policy or a suicide exclusion for the first 13 months from the policy commencement date.

What are some of the features offered by MLC insurance policies?

How to apply for an MLC life insurance policy

You can apply for a policy with MLC through our comparison site.

To apply, you have to meet certain criteria, including health, age, and occupational parameters. You will also have to decide on which cover is best suited to your budget and requirements.

In keeping with your duty of disclosure, you must ensure that you disclose any current or past medical issues during your application. MLC may require you to complete additional medical examinations.

When coming to a final decision, the insurer may decide to adjust the terms of your policy. They may choose to issue revised terms such as an exclusion or loading if they see you as a higher risk.

Your policy will then be approved, and you will be issued with a policy schedule, containing all the details of your policy including special conditions, exclusions, benefit amounts, your policy commencement date and other important information.

How to lodge an MLC Insurance Claim

  • Yourself or your beneficiary must notify either your financial adviser or contact MLC directly on 1300 125 246 between 8:30 am to 6 pm Monday to Friday.
  • The consultant on the phone will then guide you through the process of lodging a claim and will supply you with a claims form.
  • You must then send them your completed form along with any additional documents they may have requested.
  • After receiving the documents, they will then refer you to your dedicated claims assessor who will then notify you of the outcome.

The overall customer experience

Customer reviews and customer satisfaction are a great way to judge a company’s performance. According to the Roy Morgan Single Source from July 2018 to July 2019, MLC received a 67% customer satisfaction rating. This puts it in the right in the middle of Australian insurance providers.

MLC paid over $1 billion in claims to over 5000 clients in 2018. According to the Australian Prudential Regulation Authority (APRA), MLC had a claims acceptance rate of 97.6% for life cover when purchased through a financial adviser. With the average time to come to a decision regarding a Life cover claim being approximately 2.5 months.

You may want to look into reading reviews from customers on independent websites to give you an understanding of the overall customer experience.

Frequently asked questions and answers

  • What does MLC Life Insurance stand for?

    MLC stands for Mutual Life & Citizens Assurance Company Limited. It was initially known as the Citizens’ Assurance Company Limited.
  • How can I cancel MLC life insurance?

    You can cancel your MLC life insurance policy at any time as long as you advise MLC in writing. You also have a 14-day cooling-off period in which you can cancel your policy and receive a full refund.
  • Who owns MLC life insurance?

    In 2016, Nippon Life purchased an 80% stake in MLC. The other 20% is still owned by the National Australia Bank (NAB). The Nippon Life Insurance Company is one of the world’s largest mutual life insurance companies and has been around since 1889.
  • What is MLC Life Cover Plus?

    MLC Life Cover Plus adds additional benefits to their standard life cover policy. With Life Cover Plus, you can typically get your full Life Cover benefits if you suffer as a result of an accident, such as losing both arms or both feet. Some of the additional features of Life Cover Plus are Accidental Injury Cover and Business Safeguard.
  • What is MLC On Track?

    MLC On Track is a wellness program that gives customers a 5% discount on their premiums for the first year, which can only be maintained by meeting weekly step targets. Customers must use wearable devices like a Fitbit or Garmin to hit step targets. It is only eligible for new customers who took out a policy after 2 October 2017.
  • How can I access MLC Best Doctors

    All you have to do is call Best Doctors on 1800 186 088 between 9 am, and 5 pm from Monday to Friday (Melbourne/Sydney time) and they will do the rest.

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