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.

 


Recent product and price changes

Recent product changes include:

  • New Product release Asteron for Trauma, Life and TPD
  • New Policy document for Cigna for Life and Trauma
  • Southern Cross product changes effective 1 December

Recent pricing changes include:

  • Pinnacle Trauma rates effective 20/9/18
  • BNZ Trauma rates went up August
  • Fidelity Life rates effective 1/7/18
  • Southern Cross announced pricing changes from 1 Novmber

Co-op Money NZ Insurance Transaction with Pinnacle Life

Gareth Vaughan has an excellent article, rich with detail, on the Co-op Money transaction with Pinnacle Life. First, let me be clear - Co-op Money NZ is not the same as Co-operative Life, often abbreviated to Co-op Life, a subsidiary of The Co-operative Bank.

Co-op Money NZ has sold a book of life business to Pinnacle Life, and non-life business to Provident. My understanding is that this is a move that has been contemplated for some years. The sale conclusion, however, was timely, as pressures from systems changes at Co-op Money NZ have been affecting the balance sheet. Lots of detail in Vaughan's article. Link.