Financial services giant MLC is offering five-year fixed rate insurance cover on life and total disability premiums in a bid to win over new customers. 

The initiative by the National Australia Bank’s wealth management division rewards customers who switch from paying premiums by step cover – where premiums increase each year with age – to level cover, where clients pay more in the first year with payments stabilising as they get older.   

GM Insurance Greg Einfeld told insuranceNEWS.com.au most MLC customers buy step premiums because level premium rates are not guaranteed.  

“The five-year rate certainty will certainly dispel the common myth that life insurance is expensive,” he said. Mr Einfield says the company upgrades its product portfolio annually and until recently benefits were offered only to existing clients.
 
He says MLC wants to extend its client base beyond the current 280,000.