Retail deposit guarantee scheme to be extended
The Finance Minister has announced that the retail deposit guarantee scheme which was due to expire on 12 October 2010 will now be extended through to 31 December 2011.
Some changes to the scheme’s terms and conditions are being made which include:
* Participating institutions fees will be changed to reflect their risk profile.
* Eligible bank deposits will be covered up to a maximum $500,000 per depositor per institution and, eligible non-bank deposits to a maximum $250,000 per depositor per institution. The maximum at the moment is $1 million per depositor per institution.
* Deposit-taking institutions with a credit rating of BB or higher can apply to participate but institutions with a lower credit rating or no credit rating won’t be eligible despite being included in the current scheme.
* Collective investment schemes won’t be eligible for the new scheme.
The Government will introduce legislation to enact the changes prior to the current scheme expiring.
Call Denis if you are considering investing or renewing your existing bank or finance company deposits to get some sound advice. Either contact Denis by email denis@thorner.co.nz or on 0274 575 190.
Click here to view our disclosure statement.
Thorners – servicing clients New Zealand wide
Winner – Best Trade /Service Business
Upper Hutt Business Excellence Awards 2009
Income protection costs more for ladies
Women pay more than twice as much for income protection insurance as men because they make more claims for mental health and stress-related conditions, say insurance companies.
As the insurance industry reports a big rise in the number of New Zealanders taking out income protection policies, premium schedules show women pay significantly more for the products.
For example, a 35-year-old non-smoking man insuring a $65,000 annual income will pay $39 a month for an AIG Life IP policy. A 35-year-old woman with the same profile will pay almost $85.
Premiums go up with age for both sexes, but the disparity remains – at 50 the man will pay $129 a month whereas the woman will pay $270. AIG said it had always been the case that women made more stress-related claims. These claims were expensive, hence the difference in pricing.
In the most recent study to date which was undertaken in 2002, 30 per cent of claims made by New Zealand women on their income protection insurance were for mental/nervous conditions. For men that figure was 16 per cent. There was no reason to believe the trend had changed, and more recent studies in Australia showed a similar breakdown.
For men the major cause of claims was accidents but women did not make many accident claims.
Mental health and stress-related claims tended to run for much longer and were harder to terminate, and so this was built in to the pricing.
“You can see when a leg is well and somebody can go back to work.
“I can’t really tell if you’re not depressed any more.”
Insurance companies simply looked at where they were incurring the most claims and did not necessarily try to explain the trends. “It really all comes down to what an actuary thinks the expected claims are going to be.”
Why women would make more stress or mental health-related claims at work does not appear to have been well researched so far. Investment Savings and Insurance Association chief executive Vance Arkinstall said he was not aware of the disparity.
A spokeswoman for insurer ING said its income protection premiums were higher for women, but this was because women made more claims across the board.
The Attitude NZ survey released this year by research company Perceptive found that women reported higher levels of stress than men in all areas including saving ability, retirement security, job security, quality of life and health and well-being.
Auckland University associate professor of economics, Susan St John, said the private insurance industry differentiated by gender because it was allowed to and it was easy, not because there were necessarily two risk groups.
If there were a unisex pool of insured people the risk would be spread. “In this case the risk discrimination is simply by gender, which is a crude risk discriminator.”
A survey of 1000 New Zealanders released last week by AIG Life showed 23 per cent have income protection insurance, compared with 13 per cent two years ago.
If you are looking for sound life insurance advice, contact Denis Thorner on 0274 575 190 or email denis@thorner.co.nz Denis provides advice to clients New Zealand wide.
Click here to view our disclosure statement.
Denis Thorner recently won the Best Trade/Service Business Award at the 2009 Upper Hutt Business Excellence Awards, he belongs to the PAA and is a life long member of MDRT
Redundancy, mortgage protection and disability insurance are all different
Mortgage protection insurance, which sometimes has a redundancy cover component, will only pay the mortgage for six months if the insured is made redundant. The amount paid under the policy will also be offset against any redundancy benefit. Redundancy insurance payouts are not made if the consumer anticipated being made redundant and there may also be a long wait period before a claim can be initiated following acceptance of the new policy.
During recessions more people take out income and mortgage protection insurance when they feel their jobs are at risk – but “there’s no perfect insurance solution to protect them from that”. It only covers a percentage of lost income if they suffer an accident or illness.
Many consumers don’t know how much they will be paid if they have to make an income protection claim, and don’t realise that if they get an ACC payment, it will be offset against their insurance.
A consumer with income protection insurance who opts to take lower levels of ACC cover may be caught out if their policy provides that it will offset either what the insured receives – or what they were entitled to receive – under ACC. This means even if the consumer deliberately reduces their ACC entitlement, the insurer can offset the full benefit they could have claimed.
Most income protection insurance problems stem from its disclosure provisions. Karen Stevens, Insurance Ombudsman, says non-disclosure complaints form a quarter of her work. People don’t tell their insurance provider information they needed to properly underwrite the policy.
Insurers can then choose to void the policy – so not only will the person not have a claim paid, they will not have a policy in the future.
If you are looking for sound insurance advice, contact Denis Thorner today on 0274 575 190 or by email denis@thorner.co.nz Denis services clients New Zealand wide.
Click here to view our disclosure statement.
Denis Thorner, winner Best Trade / Service Business at the 2009 Upper Hutt Business Excellence Awards.
Mayoral congratulations to Thorners for recent business award
Mayor of Upper Hutt Wayne Guppy has written to Denis Thorner to express his congratulations on winning the recent Upper Hutt Business Excellence Award for Best Trade/Service Business 2009.
Wayne commented this is indeed a magnificent achievment and I am sure that you are all very proud of your achievment. He also wished to thank Thorners for their support and commitment to the citizens of Upper Hutt.
To experience service excellence, contact Thorners for all of your insurance, home loan and KiwiSaver requirements today. Thorners service clients New Zealand wide and offer home appointments from Wellington through to Napier by arrangement.
Click here to email Thorners or Call Us on (04) 528 8088
Fixed interest mortgage rates rise again in August 2009
Long term fixed mortgage interest rates are on the upward rise again following adjustments overnight by several lenders.
If you are contemplating refinancing, increasing or taking out a new home loan then talk to Denis at Thorners first.
Denis Thorner provides advice to people New Zealand wide and offers home appointments anywhere from Wellington to Napier. Call him soon on 0274 575 190 for more information.
Thorners – winner of the Best Trade / Service Business Award at the 2009 Upper Hutt Business Excellence Awards.
Monitored alarm call out fee reimbursements
Monitored burglar alarms can save you money.
Some insurers will have no excess on your claim if you have a monitored alarm that was triggered by an intruder.
In addition, some insurers will also reimburse the security firms call out fee where it is not recoverable under any other policy.
These are more the exception than the rule and it is important that you understand the conditions of your insurance policy to maximise the benefits available.
Thorners service clients New Zealand wide and can quote home and contents insurance cover no matter where you are located. Special package discounts are also available for Super Gold card holders.
Call us soon to get a comparison on your premiums – remember a broker knows each insurers good points and will place you with the most beneficial company for your needs and budget.
http://www.thorner.co.nz/services/domestic-insurance/
Click here to email Thorners or Call Us on (04) 528 8088
32% of Kiwis have Health Insurance – June 2009
The number of people with health insurance policies rose slightly in the June 2009 quarter, the Health Funds Association of New Zealand says.
The health insurance market grew by 700, or less than 0.1 percent, in the latest quarter, after dipping 0.2 percent in the March quarter.
For the year to June the number of people with health insurance rose 4500, or 0.3 percent. The total was 1.39 million or 32.3 percent of New Zealanders.
A trend away from comprehensive health insurance towards elective surgical and specialist cover continued, the association said.
Elective surgical and specialist cover now accounted for 910,700, or 65.3 percent, of those covered by health insurance.
Health insurance earned premiums rose 5 percent in the June year, from the previous year, to $846m.
The $725m in health insurance claims paid in the year was up $69m, or 10.5 percent, on the year before. In the June quarter $194m in claims were paid.
The rise in claims paid was due to increases in the number of claims and in the costs of treatment.
You can quote and apply online for health insurance from our website or contact us for more information now. We service clients NZ wide and offer personal appointments from Wellington through to Napier.
Click here to email Thorners or Call Us on (04) 528 8088
Click here to view our disclosure statement.
Get another 20% of life cover for free…
Apply for Life Insurance through Thorners and your annually reviewable Sovereign Life policy will have 20% extra free life cover added for the first two years. The application must be accepted and the policy issued before 30 November 2009.
Quotes and applications can be made online from the Thorner website or you are welcome to contact us for personal attention.
Thorners service clients New Zealand wide andf are an award winning insurance agency. We look forward to hearing from you.
