Pinnacle Life on insuring rainbow families, and more daily news

Pinnacle Life has published a piece on their website on the importance of insuring rainbow families. Pinnacle Life noted that families today no longer resemble the typical nuclear family unit. The piece focuses on rainbow families, which are families with parents who are part of the LGBTQI community. Pinnacle Life highlighted that the 2013 census recorded that there were 1,479 children of same-sex families in New Zealand. Pinnacle Life also noted that insurers base premium rates on assigned gender. While Pinnacle Life asks about a person’s gender, they have stated that they offer flexibility around policy ownership. Nonbinary individuals are still about the take out life insurance for themselves and their families, without worrying about gender-based pricing.

“The stereotypical family of 2021 is remarkably different from the family of 50 years ago. Mum, dad and two kids are becoming less the norm and more the unlikely. Today we are more likely to have blended families, split families, 1-child families, many kid families, single-parent families, multi-race families, rainbow families and more. With the pride festival winding down this week, we wanted to take a moment to acknowledge rainbow families particularly. 

 

A rainbow family is a same-sex or LGBTQI-parented family. Statistics are hard to come by, but in 2013 the census recorded 1479 children of same-sex families in New Zealand. It's safe to imagine that if we broadened the definition, considered the number of people who didn't complete the census and increased public acceptance during this period, that this figure has probably doubled and is growing. Teachers and schools will be factoring this into activities involving families, clubs and community centres too. It's not difficult; it just takes a bit of thoughtfulness to remember that not all kids have a 'mum and dad'. Some have two mums, two dads, or a combination that extends beyond one of each or something in between.

 

If you're part of a rainbow family, you might be frustrated that life insurance companies seem to be behind the times. While there is total flexibility around who owns your policy, we still ask questions about gender, with the only options to be male and female. Some life insurance companies underwrite transgender applicants based on assigned gender, while others use their stated gender.

 

Life insurance rates are calculated based on assigned gender and this is understandably a sensitive subject for a lot of people. This is unfortunately the norm in the industry because of the statistics around mortality. We can ensure that, once you purchase your policy online, your true gender is recorded in your policy document.

 

The important thing is you can still get life insurance if you are nonbinary, and it doesn't mean that you'll pay higher premiums because of your gender.

 

Your rainbow family may not have a nonbinary member. Rainbow families come in all shapes and sizes. But one thing they all have in common is that a lot of thought went into creating the family in the first place. Finding the 'missing ingredient' takes consideration and planning that most heterosexual couples haven't had to give a second thought. And that's just the starting point.” Click here to read more

 

In other news

 

nib: EMA HR Summit to be held 25 March 2021

FSC: Adviser research reveals optimistic outlook for the sector

Southern Cross: Southern Cross’s membership at 13-year high


Insurers set to pay assisted dying claims, and more daily news

Various insurers have confirmed that terminally ill customers who choose to undergo assisted dying will be eligible for claim payouts. Before the referendum AIA was the only insurer to state that it would pay if the referendum passed. Recently, Cigna has said that it would pay out if assisted dying became legal and customers decided to end their life. Jane Barron, Pinnacle Life spokeswoman, noted that customers with a terminal illness are entitled to claim if it has been stated by a doctor that they have 12 months or less to live; so those that would have an assisted death are already entitled to claim.

“AIA, New Zealand’s largest life insurance company, said it could still settle claims if ACT MP David Seymour’s End of Life Choice Act became law, but others were yet to settle on their stance at that time.

 

With preliminary figures from the Electoral Commission on Friday showing 65 per cent of New Zealanders voting in favour of the End of Life Choice Act, terminally ill adults with fewer than six months to live will be able to request assisted dying.

 

One of the life insurance companies contacted by Stuff this week, Cigna, said it would pay out if assisted dying became legal and policy holders took up the option of dying with assistance. Cigna chief executive Gail Costa said the End of Life Choice Act stated that a person who died as a result of assisted dying would be taken to have died as if assisted dying had not been provided, or have died from the terminal illness from which they suffered.

 

“Provided a policy holder who takes up the option of dying with assistance meets all terms and conditions, they will be entitled to claim.”

 

And Pinnacle Life spokeswoman Jane Barron said people with a terminal illness were entitled to claim on their Pinnacle life insurance policy if their doctor said they had 12 months or less to live.

 

“Therefore, anyone who is in the situation where they are considering an assisted death is already in a position to be able to make a claim.”” Click here to read more

Chatswood thinks it likely that all the providers of the best life cover will include payment on this basis, as they already make advance payments for terminal illness, which is decided on terms that probably include more cases that those envisaged by the End of Life Choice Act, based on modelling shared in our recent Quarterly Life and Health Sector review. 

 

In other news

FMA: FMA appointments reflect serious move into fintech space

Southern Cross: ProCare and Southern Cross join forces to enter virtual healthcare market

FSC: FSC Enjoys A Solid Year Of Growth Despite Challenges

Advisers Raise $12.5k For Fiordland Conservation Trust’s Kids Restore The Kepler


Pinnacle Life unpack life insurance discussions, and more daily news

Pinnacle Life has published tips on how to discuss life insurance with a significant other. Pinnacle Life begins by encouraging those that have never discussed money or life insurance with their partners to do so as it is an important part of planning for the future.

“Talking about life insurance means talking about death. No-one finds that easy. Pinnacle Life has some tips to get you started with talking about money and life insurance with your partner.

Not many of us have been taught how to have conversations about financial decisions. In fact, financial literacy hasn’t been on the school curriculum for very long at all – at best, it’s still optional for most schools today. There seems to be an underlying assumption that financial literacy is something you can learn yourself or pick up from your parents. But evidence suggests it’s not that easy; New Zealanders are notoriously underinsured and ‘under-saved’.

In a time when the news is filled with death rates, recessions and industry failures and many of us are facing reduced incomes, it’s a reminder that it’s never too soon or too late to start having conversations about our finances and insurance. We know that it's not easy to talk about money openly and honestly; talking about life insurance can be even harder because it means talking about what will happen if you die.”

Tips include:

  1. Conducting independent research
  2. Choosing the right time to have the discussion
  3. Taking your time to plan and execute
  4. Start by looking at the big picture before honing down to the details
  5. Embrace the emotions that arise
  6. Discuss your money objectively
  7. Seek advice from a professional

Click here to see all the details

In other news

nib: new customers that sign up for Ultimate Health Max, Ultimate Health and Easy Health policies using nibAPPLY will have 2 months free until 31 January 2021

Southern Cross: 72% of all claims were paid out in 2020

82% of customer channels are now fully digitised and over 96% of claims now submitted digitally

The power of social media- Russell Hutchinson writes on goodreturns


Product database updated

The QPR database has been updated and version 136 has been issued to subscribers and all changes are now live on Quotemonster. This version of the database includes the following changes:

Pinnacle Life policy wordings updated:

IP version 16/10/2018

Life version 01/12/2019

Funeral version 23/01/2019

Trauma version 01/12/2019

- no rating changes

 

Cigna business wording 11/05/2020 updated and rating changes applied. Revisions to ratings:

- IP/MP:

Future Insurability + Redundancy max entry/exit ages for Cigna

Pregnancy Premium Waiver Gender for Cigna

Insurable Income - SE rating for Partners Life

Insurable Income Salaried + SE amount score review

- Trauma:

> Diabetes Mellitus Adult definition, min age and amount score for Cigna

> Multiple Sclerosis definition review


Pinnacle Life on who needs life insurance, who doesn’t

Pinnacle Life Marketing Manager Kerry Vaughan spoke with Newshub to clarify life insurance. Kerry stated that it would be a good idea if people with financial obligations took out life insurance. In the interview Kerry provides three different examples of when life insurance is necessary.

  1. You have dependents
  2. You have a mortgage or other debt
  3. You’re worried about what getting ill would mean for you financially

Similarly, Vaughan gave three examples of when life insurance isn’t necessary:

  1. You have no dependents or debts
  2. You’re very young 
  3. You have out-lived your need for it

To the top list I would add the ideas that life insurance gives rapid payment compared to the sale of real property, and also if you expect that you might soon have one of those three reasons in the future. To the bottom list I would add that your assets have grown to the point where you have sufficient funds to meet your commitments and desires for your estate. 


Congratulations to Pinnacle Life on being granted a digital advice exemption

The FMA has granted Pinnacle Life a digital advice exemption. Congratulations to Gillian Vaughan and her team, in particular Amy Cavanaugh who has been driving this project forward. From the media release:

General Manager Operations Amy Cavanaugh says the provision of digital advice will extend Pinnacle Life’s existing online service to customers, offering a flexible approach to personalised advice.

“We know our customers are busy people, so we thought about how we could provide advice in a flexible, personalised, easy-to-access way. The new digital advice platform we are developing will enable customers to make informed decisions about insurance through tailored, real-time digital advice, whenever and wherever they want it.

The Chatswood team has been privileged to be a part of this project. Our prior contributions to online processes have tended to be data services. This project is a further step forward as it has been for a personalised digital advice process. I would like to recognise Shaun Dowler, who provides data science consulting as part of our team has been particularly valuable in pushing ahead this work for Chatswood. 

The announcement says that the service will be launched later this year. 


Pinnacle Life new advertising

The new Pinnacle Life ad has been crafted in a manner that illustrates the consequences of being unprepared for unforeseen life events. The devastating effects of being unprotected is intended to appeal to the emotions of viewers. The turn in events of the main character's life works to highlight the ups and downs in life and places emphasis on the importance of preparing for unfortunate events while in a good place.