The new product is part of Medibank Private's strategy to diversify its product line-up to a broader portfolio.
The fund will leverage its strong brand and large membership base to challenge its competitors with a convenient and attractive life insurance cover.
Medibank Private will offer a life insurance product with a maximum benefit of up to $1.5 million, and an optional "Permanently Unable to Work" add-on with a maximum benefit of up to $1.25 million.
The national launch follows a successful 12-month pilot program that Medibank Private Managing Director, George Savvides, says demonstrated an appetite for life insurance products that are simple to purchase yet comprehensive in their coverage.
"When we first looked at offering life insurance we recognised a significant gap in the market. Existing life insurance offers tend to be either complex products sold through financial advisors, requiring inconvenient medical examinations, or extremely lightweight products with limited coverage.
"Medibank Private life insurance will fill this gap, offering excellent benefits but without the requirement to visit a doctor for a medical check or all the complicated paperwork.
"Indeed the entire application and join process can be carried out very simply online or over the telephone. This easy process will greatly lower the barriers that can deter people from purchasing life insurance, and we think will be very appealing to our members and the wider public.
"We are particularly pleased with our innovative partners who helped us develop this product. After a rigorous process we chose to work with Swiss Re, known around the world for their financial expertise, and The Hollard Insurance Company, which has an equally strong reputation as a provider of customer focused service," Mr Savvides said. I
nitially Medibank Private will focus on cross-selling life insurance to its own membership base of over three million people, however the product will also be available to non-Medibank members.
Life insurance is not the first non-private health cover product Medibank Private has offered, with the fund selling travel insurance since 2005, a move which has been very successful, with sales up by 56 per cent in FY08.
"Medibank Private's core focus will continue to be private health insurance, but we will always explore opportunities to improve value for members," Mr Savvides said.
Key product features:
� Up to $1.5 million lump sum death benefit (depending on age)
� Terminal illness benefit
� Accidental injury benefit
� Funeral expense benefit
� Annual indexing of benefits
� Optional $1.25 million permanently unable to work cover (depending on age)
� 24 hour world wide cover
� Simple joining process - no medical required
� 10% Member discount for existing Medibank
Private members
ENDS For further information please contact: James Connors Tel: 03 8622 5163 | Mob: 0433 992 677 | email: james_connors@medibank.com.au