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What happens if you fail to disclose information to an insurer?
Category: Fire and General Insurance, Life Insurance
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Currently the NZ law does not make a distinction between deliberate or innocent non disclosure. Effectively if you just left information out of an insurance application unintentionally or by accident, the insurer can still decline your claim, avoid your policy or make changes to your policy. Contact Thorners if you need insurance advice and we will work with you to ensure that you understand the proposal form and disclose the relevent information. Thorners service clients New zealand wide and are an award winning insurance agency offering personalised service. Click here to email Thorners or Call Us on (04) 528 8088
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Is it fair that insurers exclude pre-existing medical conditions?
Category: Life Insurance
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We are often asked why insurers exclude pre-existing conditions. Unless a policy offers cover for pre-existing conditions, the insurer isn’t obliged to cover any of them. Companies generally exclude associated treatment for pre-existing conditions as they pose a higher risk and greater likelihood of a claim. For sound advice on any new Life insurance policy, contact Thorners. We service clients New Zealand wide and have a sound knowledge of the best options available. Click here to email Thorners or Call Us on (04) 528 8088
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Transfering Australian Super to New Zealand – July 2009 update
Category: KiwiSaver
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Q&A ON RETIREMENT SAVINGS PORTABILITY
Why is retirement savings portability being implemented?
The New Zealand and Australian labour, financial, and goods and services markets are highly integrated by international standards. Retirement savings portability is part of the Single Economic Market (SEM) work programme, which builds on our existing relationship and aims to reduce barriers that may impede the movement of people, trade and capital across the Tasman. The introduction of retirement savings portability will support and add to the degree of integration between the two countries by allowing New Zealanders and Australians to consolidate their financial affairs in their country of residence. When will the portability arrangements take effect? The Minister of Finance and the Australian Treasurer have signed a Memorandum of Understanding that formally records the intention of both countries to allow for retirement savings portability. To implement the arrangements, legislative changes are required in both countries, which we expect to be in place around mid-2010. What kind of transfers will be allowed under the portability arrangements? - Savings that are held in a New Zealand KiwiSaver scheme may be transferred to Australia. This means savings in all other funds (including complying funds) or other retirement funds cannot be transferred. – The portability arrangements will be the only way of making a transfer of KiwiSaver funds to Australia. This means individuals will no longer be able to withdraw their savings as cash one year after permanently migrating to Australia. However, as noted above, you will be able to transfer the amount of member tax credits you have accumulated. The current KiwiSaver rules require you to return your member tax credits to the government if you withdraw your savings as cash. - KiwiSaver funds can only be transferred to Australian complying schemes regulated by the Australian Prudential Regulation Authority (APRA). This means you cannot transfer your savings to an Australian self-managed superannuation fund. For more information on which Australian schemes apply, go to http://www.apra.gov.au/Superannuation/ If I move to Australia, can I leave my savings in KiwiSaver instead of transferring them? Yes. Transferring your savings to Australia when you emigrate is optional. However any contributions you make to your KiwiSaver account while living offshore will not be eligible for member tax credits. If I transfer my savings to Australia, when will I be able to access them? You will be able to access your KiwiSaver funds at the age of entitlement to New Zealand superannuation. Currently this is at 65 years of age. Any earnings on these KiwiSaver funds as well as contributions made while in Australia will be subject to all Australian rules regarding access to funds. Which country’s rules will apply to savings transferred between the two countries? In general the rules of the host country regime will apply. However there are certain differences that will be applied to transferred savings in order to protect the integrity of the respective regimes. These differences apply only to the savings that are transferred, and not to any subsequent earnings on these transfers. The key differences are set out below: New Zealand KiwiSaver funds transferred to Australia: May not be accessed until the New Zealand age of retirement (65 years). May not be transferred into Australian self managed superannuation funds. May not be transferred to a third country. Australian funds transferred to New Zealand: May not be accessed until age 60 and the individual satisfies the Australian definition of retirement at that age. May not be used to assist with the purchase of a first home. May not be transferred to a third country. If I transfer savings from Australia, can I use those funds to put towards buying a first home? As noted above, funds transferred from Australia will not be able to be used to buy a first home. This is consistent with Australia’s policy regarding superannuation funds. In addition, any savings transferred from Australia will not count towards your eligibility for the deposit subsidy. For more information on the housing-related initiatives of KiwiSaver, go to http://www.hnzc.co.nz/hnzc/web/rent-buy-or-own/home-loans/kiwi-saver-homeownership-features.htm How will these different rules be applied to transferred savings? Any savings transferred between the countries must be separately identified within an individual’s retirement savings account. Can I transfer my savings to Australia even if I don’t emigrate there? You can only transfer funds to Australia if you permanently emigrate. Before transferring your funds, your KiwiSaver scheme provider will require proof that you are residing in Australia. Can I transfer some savings to Australia and leave some in New Zealand? No. If you choose to transfer your savings to Australia when you emigrate, you must transfer them all. This avoids the proliferation of small and inactive accounts which are costly to administer. If I transfer savings from Australia, can I withdraw these for reasons of significant financial hardship or serious illness? Yes, so long as you meet the relevant conditions of release contained in the Australian Superannuation Industry (Supervision) Regulations 1994. Do I have to transfer my savings if I move to Australia or vice versa? No, the arrangements are voluntary. Will New Zealand tax any transfers from New Zealand to Australia or vice versa? No. Will Australia tax any transfers? Australia will not specifically tax the transfer of retirement savings to or from New Zealand. However at the initial point of entry into the Australian superannuation system, transfers of New Zealand savings will be subject to Australia’s rules regarding the taxation of retirement savings contributions greater than $150,000 per annum. This is known as the non-concessional contributions cap. Australian-sourced retirement savings, and any New Zealand-sourced retirement savings re-entering Australia, will be exempted from these rules upon re-entering the Australian superannuation system. For more information on this cap go to http://www.ato.gov.au/superfunds/content.asp?doc=/content/00106372.htm&page=6&H6 Is there a difference in the rate of tax on earnings between Australia and New Zealand? Yes, Australia has a flat rate of 15% on earnings. From 1 April 2010 the New Zealand tax rate on superannuation earnings will range from 12.5% to 30%. It is also not traightforward to make a comparison between the two tax regimes because of other factors. For example Australia also taxes capital gains on equities whereas New Zealand does not tax capital gains on Australasian equities. There are also other advantages to transferring your retirement savings to your country of residence such as being able to consolidate you financial affairs and not pay multiple sets of fees. Any changes to your Australian Super schemes require specialist advice so talk to us first. We service clients NZ wide so contact us for information today. Click here to view our disclosure statement. Click here to email Thorners or Call Us on (04) 528 8088
Sun Super Industry Superannuation Fund Australia
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Sentinel Lifetime Loan Interest Rate Change from 1 July 2009
Category: Home Loans
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Sentinel have advised that the floating rate for their Lifetime Loans will drop to 6.85% p.a. effective from 1 July 2009. This is a dramatic drop reflecting current market changes and takes affordability of the lifetime loan to a new level and the lowest it has ever been. If you are retired, own a home and are suffering financial distress or just need some additional cashflow, there has never been a better time to consider a Sentinel Lifetime Loan. Thorners offer a NZ wide service so call or email us for more information on Sentinel Lifetime Loans today. All discussions are confidential. New Zealand wide service – let us know your situation today to allow us the opportunity to provide you with some options Click here to email Thorners or Call Us on (04) 528 8088 Click here to view our disclosure statement
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Supergold Card Holder Discount Offer Coupon
Category: Fire and General Insurance
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Thorner General Insurances Ltd offer 10% discount to all Super Gold Card holders New Zealand wide on any Ansvar Insurance Fire and General Policies for personal home, contents and car cover. This discount is over and above the already competative over age 55 age discounts already offered. Please quote this blog when requesting your insurance quote. Click here to email Thorners or Call Us on (04) 528 8088
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Could you financially survive a medical trauma?
Category: Life Insurance
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Could you financially survive a medical trauma? · Could you require funds to replace or supplement income if you were seriously ill? · Could you require funds to cover replacement staff? · Could you require funds to meet HP’s and the ongoing mortgage payments? · Could you require funds to make alterations to the house or to change vehicles? · Could you require funds to retrain for new employment? · Could you require funds to assist with household chores that may no longer be possible? · Could you require funds to pay for a dialysis machine at home? These are a few of the reasons to have funds available to help give you ongoing quality of life and some financial resilience to the pressures you may incur in your time of need. Every year about 7,000 people in NZ have strokes and whilst many survive, they often have an impaired level of conciousness and mobility. Thats nearly 20 people per day so the odds are not great and thats only one medical condition.
We need to talk if you don’t have a large nest egg available to meet unexpected expenses if you were to suffer a medical trauma.
Click here to email Thorners or Call Us on (04) 528 8088
Thorners service clients NZ wide.
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