nib offer complementary mental health cover, and more daily news

nib New Zealand has launched the new complementary mental health cover that is available to Ultimate Health and Ultimate Health Max members who purchased their policies from 1 October 2021. Eligible customers will have access a consultation with a psychologist or psychiatrist without the consultation being linked to a hospital claim. The new mental health cover replaces the complementary Ultimate Health and Ultimate Health Max travel insurance cover that was offered in the past.

“nib New Zealand (nib) has launched a new complementary Mental Health cover for eligible Ultimate Health and Ultimate Health Max members to provide greater access to mental health services and help Kiwis continue to keep on top of their health and wellbeing.

The new mental health cover is available to members who are covered under a new nib Ultimate Health or Ultimate Health Max policy purchased from 1 October 2021 and provides up to $2,500 of consultations annually with a registered psychologist or psychiatrist on referral from a GP. The complementary cover will initially be available to members for one year.

nib New Zealand Chief Executive Officer, Rob Hennin said the health insurer was pleased to help improve access to mental health services and support the one in five people1 across the country who experience a mental illness each year.

“More and more Kiwis are seeking vital mental health services and we want to ensure eligible members are provided the opportunity to access such care, when they need it,” Mr Hennin said.

“The new Mental Health cover offers eligible members greater access to treatment as they can access a consultation with a psychologist or psychiatrist without it needing to be linked to a hospital claim such as cancer or cardiac services. Those members only need a referral from their GP to claim and they have the flexibility to choose their own health provider,” he added.

The introduction of nib’s mental health cover replaces the previous complementary Ultimate Health and Ultimate Health Max travel insurance cover. nib travel insurance sales have stopped while nib pursues new underwriting arrangements for its travel insurance business across Australia and New Zealand.

Mr Hennin said he believes the new cover will be well received by members who may need additional support for their mental wellbeing.

“As we move towards our ambition of health partner, we want to ensure our members feel supported and empowered to be proactive when it comes to taking care of their health and wellbeing. And, with varying lockdowns and COVID-19 restrictions likely to have an impact on the mental health of our community we believe the introduction of our Mental Health cover is timelier than ever,” he said.

nib’s new Mental Health cover is also available to existing members with an Ultimate Health and Ultimate Health Max policy that commenced from 21 April 2018, with the complementary mental health cover commencing following the renewal of their Ultimate policy from 1 December 2021.

For more information on nib’s Ultimate Health cover advisers should speak with their Adviser Partner Manager. ”

In other news

Fidelity Life: Fidelity Life has revised customer documents to simplify the language and made changes to policy wordings terminology

Fidelity Life: enhancements to CPI option and Indexation option. This will apply to new business issued on the amended wordings.

Fidelity Life: survivor's income cover options have been simplified

Fidelity Life: class 1-4 definition of ‘total disability’ has been updated for income protection-type covers

FSCL: FSCL sees spike in overall complaints


Partners Life underwriting process updates, and more daily news

Partners Life has announced that there will be several changes made to the underwriting process from 27 September. The updates include the removal of certain requirements for large sums assured cases, changes to Monthly Disability non-medical limits and Trauma Cover non-medical limits, making questionnaires available on MyPartnersLife, and making the latest Adviser Underwriting Guide available on MyPartnersLife.

“The following changes were implemented into our systems over the weekend, and are effective today, Monday 27 September 2021:

Removal of some requirements for large sums assured cases
We have reflected on what value each of our limit requirements give to us, and have identified that a number have rarely affected the outcomes in the past. As such, we have removed the following from our standard limits requirements:

  • Resting ECG’s. This means that the Code C Medical Examination is no longer required to be completed by a Senior Physician, and a GP medical will now be sent in its place
     
  • HIV and Hepatitis C blood tests from Code B blood tests
     
  • HIV, Hepatitis C, Full Blood Count and ESR blood tests for Code C and above, where Life Cover does not exceed $5,000,000 and TPD Cover does not exceed $3,000,000

Changes to Monthly Disability non-medical limits
We have reflected on our non-medical limit sums assured for monthly disability cover, and have heard your comments around clients issuing cover at either $7,999 per month or $14,999 per month.  As such, we have changed the limits by $1 as a quality of life change, so you can now issue up to $8,000 per month on the personal statement only and between $8,001 and $15,000 per month with an additional Code B blood test and PMAR.

Changes to Trauma Cover non-medical limits
Previously our guidelines considered industrywide standalone Trauma Cover, while the rest of our non-medical limits only considered the risk held by Partners Life. We have updated this to now reflect all Trauma risk held by Partners Life, and have increased the non-medical limit from $1,500,000 to $2,000,000.

Questionnaires available on MyPartnersLife
Historically when clients have had to provide additional disclosure after you have submitted an application, our underwriting team has requested relevant questionnaires be completed from the application form.

With the continued growth in MUM, we recognise the use of our paper application form is fast becoming a thing of the past. As such, we have digitised all of the manual application form questionnaires, which are now available on MyPartnersLife’s forms section.

Adviser Underwriting Guide
We are also pleased to advise that the latest version of our Adviser Underwriting Guideline is available on MyPartnersLife. This updated guide incorporates all changes to our product offerings made since March 2020, including the addition of our new Moderate Trauma Cover and Income and Expense Cover. It also reflects the updated non-medical limit requirements indicated above.”

In other news

Asteron Life: Feedback improves Asteron's trauma cover

From. Good returns: [The Wrap] It's time to check in on advisers' wellbeing

AIA:

GRTV Adam and Sam.mp4 from Good Returns TV on Vimeo.


Quality Product Research: How do we model the package weightings and why?

A package should reflect the relative value of different types of insurance protection to the person buying that cover. We put weightings on packages because, for example, a package of just life and trauma is less comprehensive than a package of life, trauma, mortgage protection, and medical.

A summary of the weightings is shown below:

Prdouct new

Zoom in on the income and mortgage elements for a moment. That was raised by several advisers recently who feel that mortgage cover is the first element of temporary disability protection put in force. Market practice backs this up - quoting by advisers in Quotemonster shows that more mortgage protection is now quoted than income protection. So how were we to revise the package breakdown? We took the view that of the 45% of the package value assigned to MP and IP combined, the scores should reflect the relative weights when MP and IP are typically included in a plan together. MP often covers the first 40% of income insured and IP tops that up to about 75%. Clearly it can vary according to rules specific to each company and products used, but broadly this gives a new weighting as follows:

MP         25%

IP           20%

Total      45% of package value

We value and appreciate all the feedback coming through! If you have any questions or comments please email them through to info@quotemonster.co.nz


FYI: How to quote Partners Life Income and Expenses or Moderate Trauma Cover

We have recently added Partners Life Income & Expenses and Moderate Trauma to our product selection on Quotemonster.

To learn more about these please click on the product - Income and Expenses or Moderate Trauma

To quote these products on our platform, select them in your “Settings” as per our screenshots below:

Moderat

IE

Please free to email us on info@quotemonster.co.nz if you have any questions or comments.

Happy Crunching!


Quality Product Research: QPR database update V145

Quality Product Research works continually to update our product ratings. We have just distributed the QPR Database V145 to subscribers which includes the following changes:

 

* Medical Exclusions Major Review - all insurers

* Partners Life - new policy document effective 12/07/2021

> Income & Expenses Cover and Moderate Trauma rated

> Enhancements effective 12/07/2021

 

* AIA enhancements to Trauma & IP/MP effective 23/07/2021

* Pinnacle Life - new policy document loaded

> Life: no rating changes

> IP: no rating changes

> TPD Any Occ Accelerated rated

> Trauma: minor rating changes

* Reviews:

> Trauma

- Osteoporosis re-rate for all companies

- Asteron - Trauma Reinstatement replaces continuous Trauma in TBB

> IP/MP

- Total Disability Class 1&2 5yr for PL

> Life

- Financial Planning & Legal - re-rate for all companies

- Grief and Funeral Support - re-rate for all companies

- Business Future Insurability (optional) added to PL


Detailed schedule of Partners Life Product Changes and Benefit Improvements

Partners Life Product Changes and Benefit improvements 

Special Events Increase benefit limits increased from 75% to 100% for aggregated sum insured and new special event added

Counselling Benefit increased “use by” time to 12 months after claim

Financial and Legal Advice Benefit increased “use by” time to 12 months after claim and the maximum benefit increased to $3,000

Special Events Increase deal on offer to customers who missed policy anniversaries. Customers will have a have an additional 12 months added to their 60-day time limit that applies to their immediate past anniversary

Dependent Child Funeral Support Benefit updated to include unborn child age moving to 20 weeks or weighing more than 400 grams

Bed Confinement Benefit added under the daily care of a registered nurse as an alternative requirement

Alzheimer’s Disease, Dementia, Aplastic Anaemia, HIV (medical acquired), Multiple Sclerosis, Major Organ Transplant, Diabetes definitions changed in Trauma Cover

Non-surgical Benefit (Private Hospital and Serious Illness Benefits) annual limit increased from $300,000 to $500,000

New Public Treatment Top-Up Benefit means Partners Life will pay for some treatments after customer has covered treatment in public system.  

$5,000 maximum limit removed for Second Opinion Benefit (Private Medical Cover)

New cover for mental health consultations has a maximum of $2,500 under Surgical and Non-surgical Benefits (Private Hospital and Serious Illness Benefits)

Optional Specialists and Test now includes Podiatrist as a specialist for consultations

Cancer definition simplified in Excess Waiver Benefit.

 

Income and Expenses Cover

Income and Expenses Cover is designed to include sustainability features, remove over-insurance and moral hazard opportunity, and provide customer support

Benefit is the greater of pre-disability income less offset x 75% of life assured’s share of pre-disability monthly domestic expenses

The cover term for Income Cover and Expenses Cover is to age 65 with payments term options of 2 years, 5 years and to age 65

Pre-disability income is the same as Income Cover

Disabled for occupation classes 1-4 includes 10 hours or 75% of activities but it moves from own to reasonable occupation after 12 months

Customers will be considered to be in occupation class 5 if they have been unemployed, on unpaid leave, working less than 25 a week, incarcerated in a penal institution, or legally barred 12 months before disability

Income Cover offsets apply to Income Cover and Expenses Cover

Income and Expenses Cover has a payment term restriction that applies for medically unevidenced claims. These are not a fixed restriction for mental health claims

Unevidenced claims in the Income and Expenses Cover are paid for up to 12 months

Fixed payment terms reset for new disability for the Income and Expenses Cover, although customers must be back to full time work for more than 12 months to reset.

Disability within 12 months of claim for any reason is a recurrent disability

Income and Expenses Cover ancillary benefits include Bed Confinement Benefit, Return to Work Benefit, Increasing Income Benefit, Recovery Support Benefit (reduced to 6x SI), and Vocational Retraining and Rehabilitation Benefit (reduced to 3x SI or max $10,000)

Income and Expenses Cover ancillary benefits don’t include Lump sum TPD, Critical Illness Benefit, Specific Injury Benefit, Child Care Assistance Benefit, Death Benefit, and Return to Home Benefit

YRT option only applies.

Moderate Trauma Cover

Partners Life desires to get back to the principle of indemnification meaning that customers don’t need claims paid unless they have financial losses, and they don’t need to pay premiums that doesn’t indemnify against loss

Moderate Trauma Cover allows price efficiency, cutting out claims with immaterial financial consequences. This enables customers to afford higher sums insured.

Moderate Trauma Cover will mean future prices will be sustainable and will allow advisers to fine tune severity based on trauma solutions

Moderate Trauma Cover will have more defined conditions for Alzheimer’s Disease, Dementia, Aplastic Anaemia, Angioplasty, Blindness, Cardiomyopathy, Chromic Kidney Failure, Cancer, Diabetes, Heart Attack, Intensive Care, Loss of Cognitive Function, Motor Neurone Disease and Muscular Dystrophy, Multiple Sclerosis, Severe Rheumatoid Arthritis, Stroke.

Designed to be 20% cheaper than Trauma Cover (TC), price differential expected to grow

Designed to be a mid-range trauma cover (between TC and Serious Trauma Cover)

No built-in TPD, customers that need TDP will need to take TPD Cover.

Moderate Trauma Cover can be combined with TC and STC to create a severity-based trauma option.


Quality Product Research: Proposed rating for Agreed Value Income Protection: Occupational Retraining

Introduction

We continually review the ratings of all our benefits and have renamed “Occupational Retraining” to “Vocational & Rehabilitation Support”. Our intention with this review is to make clearer the difference between the features in readiness for more detailed research reports that are in development. Better describing the current variations and recognising that early intervention has the ability to prevent a client’s disability from escalating further and reduces more severe complications that may lead to a long-term claim – a positive outcome for the client, insurer, and employee.

Please find our proposed sub-items below.

Proposed sub-items 

Irsme

Notes

The monthly payment limit differs between insurers, however the necessity to offset is a similar feature. The major insurers (aside from Fidelity) offer coverage for Childcare Assistance, which is likely to be claimed more often than some of the other expenses. Partners Life receives a deduction for “benefit not available for all payment periods” as they do not offer their “Vocational and Retraining benefit” for payment periods which are less than 2 years. Similarly, AIA reduces their monthly payment to 6 months with 1, 2 or 5 year benefit periods. Fidelity is the only insurer that will not pay out the full benefit until the insured has returned to paid work (minimum of 20 hours). AIA, ASB and Partners Life are the only insurers that clearly offer assistance either during or after the waiting period - an important feature, as early intervention can significantly affect the length of a claim. 

Your feedback

We value getting your feedback on how these wordings are being applied to claims you may be aware of. Please email us with details of any recent claims to help us update our understanding.

Doreen Dutt, Research Analyst, Quality Product Research Limited, researcher@qpresearch.co.nz


Quality Product Research: Proposed rating for Agreed Value Income Protection: Rehab and Home Modifications

Introduction

Following on from our previous post on “Vocational and Rehabilitation Support”, we have also reviewed “Rehab and Home Modifications” and renamed the item to “Home Modifications and Equipment”.

Please find our proposed sub-items below.

Proposed sub-items

Equip

Notes

The biggest variation can be seen in the monthly benefit limits. AIA and ASB have limited their payment to 6 months while Partners Life uses a tiered approach (the monthly payment reduces in line with the payment term).

Your feedback

We value getting your feedback on how these wordings are being applied to claims you may be aware of. Please email us with details of any recent claims to help us update our understanding.

Doreen Dutt, Research Analyst, Quality Product Research Limited, researcher@qpresearch.co.nz


Life price comparison database update

We have updated the life price comparison database, version 113, to reflect the changes to Cigna's pricing, which were extensive. Corporate subscribers should examine the update notes that have been sent with the database and the change report function. Advisers should check out comparisons on Quotemonster to see the effect of the changes which involved some increases - but also some notable decreases - which tended to favour larger cover amounts and the 90 day wait period for IP / MP. 


Westpac Withdraws Gold Term and Gold Disability Income Cover

As of 15 March 2021, Westpac no longer offers Gold Term Cover (death, critical trauma, TPD) and Gold Disability Income Cover (Indemnity Income Protection). Existing policy holders, however, can continue to make amendments (i.e. increase and decrease cover amounts). Westpac Life continues to offer term life, TPD, critical illness and Agreed Value income protection in other products. For further information please click here