Tower Australia has become the first life insurance provider to the Praemium investment platforms.

CEO Arthur Naoumidis says the full range of life insurance products will be offered on a fee-for=service basis.

“The driver to introduce insurance on the platforms was the Future of Financial Advice (FOFA) reforms with the banning of commissions,” he told insuranceNEWS.com.au.

“The advisers using Praemium are all fee-based and Tower was happy to design products without commissions.”

The Tower products will be available on the company’s V-Wrap and Smartwrap platforms that look after more than $46 billion of client investments.

Both of these platforms have been designed for fee-for-service advisers since their inception 10 years ago.

“We wanted to have the first platforms that were FOFA compliant,” Mr Naoumidis said. “Once our advisers switch to fee-based service, they want to include everything in their charges, and that included insurance.”

As part of the service to adviser’s clients on the platforms, Praemium will show the level of cover they have in their portfolio summaries.

“The importance of life insurance and income protection within an overall wealth protection solution will be elevated because each investor will see their level of insurance cover,” he said.

Tower CEO Retail Life Brett Clark says putting its products on Praemium’s platforms is part of the insurer’s plan of having life insurance in every financial plan.

“We want to see more Australians seeking financial advice and increase the access to life insurance for all Australians,” he said.

“Tower strongly supports flexibility and choice in product remuneration structures.”