Tapping into community concerns about the economy, Aviva is offering to waive premiums for up to 12 months cumulatively on lump sum life policies held by clients who lose their jobs.

National Distribution Development Manager – Protection Russell Hannah says the option, which applies to life, total permanent disability and trauma cover, must be selected by existing and new policyholders, with the cost depending on risk factors.

He told insuranceNEWS.com.au that adviser sentiment has been overwhelmingly positive, although the scheme is in its early days for client acceptance.

“The speed with which we’ve responded to client needs in the current climate is getting us a lot of praise,” he said.

New policyholders must select the option and hold the policy for six months before qualifying for the waiver. Their unemployment must be involuntary, and they are required to register with Centrelink or a recognised employment agency.

Aviva says claims can be lodged during the waiver period if all requirements are satisfied.