Thorners Newsletter March 2010

Welcome to my newsletter.
I had tremendous feedback from the last newsletter which contained some thought provoking ideas and feel the time is right to update you on a significant change that concerns all of us.

In the current economic environment, the cost of day to day living continues to increase and we all need to regularly review our financial options.

Life Insurance Premiums:

Everybody dislikes paying premiums and the Life Insurance Tax Bill, which was passed by Parliament last year, is going to have an effect on the majority of NZ households who hold life policies.

In short there are proposed tax changes which will affect how life companies are taxed on their insurance products. Effective from 1 July 2010 all new life policies sold will be subject to these tax changes. Some companies have already started to increase premiums to make the change appear more seamless.

Existing “rate for age” or “annually reviewable” policies which are the most common products sold in the market will almost certainly have the increase applied and it is currently unclear on whether this will be applied immediately or grandfathered in over a period of five years so you need to keep abreast of the changes.

Level premium contracts issued before 30 June 2010 are not affected as certain Life Companies guarantee these premiums for the term of the contract so you still have a window of opportunity to secure some or all of your cover.
Despite Level Cover having a higher upfront premium, there are significant long term premium savings to be made and Level cover will allow you to have long term Life Insurance at an affordable rate not just today but into the future.
What I wish to suggest to you is that you reconsider the life cover you currently hold and any future requirements. What portion is required through to age 65 and what is required through to age 80? I can give you some comparative quotes and we can look at your premium options.Why would you not transfer some cover to level premium now as from the first of July it will be too late to make any large cost saving changes to current life policies?  This is the question I am asking everybody.  Let me provide you with some level life premium options to show you the premium savings that can be made over the life of the policy.


Sovereign had a great pre Christmas holiday competition for all their clients and I am delighted to say that a Thorners client took away the prize which consisted of an $8,000 holiday plus $2,000 spending money.  The client plans to take their children on a Surfer’s getaway adventure and to then have an adult only Irish experience.  Thank you to all of you who entered and congratulations to our winner.

I am available to discuss your insurance and investment needs in what is a difficult time for many of us at the moment so feel free to contact me if you have any questions.  My personal email is or phone 04 528 8088. 

I look forward to hearing from you.

Kind regards 


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