August 2019.
On point

August 2019.

Read on for the highlights of this month’s pricing update, a reminder about why our level term pricing really does mean level, and a new video explaining the ins and outs of the Level 5 Certificate. 

Also a quick heads up - we’ll shortly start sending you a monthly list of customers who are coming up to their annual renewal dates. The idea is to help make it easier for you to ensure customers’ cover continues to meet their needs.   

Don’t forget, if you have any feedback on On Point or the way we communicate with you we’d love to hear it - get in touch. 

Lifestyle P Familyoutdoor WEB FLIP

Act now - there’s just over two weeks to go!

Building on the success of last year’s Life Upgraded campaign and our 40+ product upgrades, earlier this month we updated our pricing. 

The good news is overall we’re more competitive than before, giving you more reasons to recommend Fidelity Life to customers1.

Four key highlights

  • 1. Lump sum insured discounts
  • 2. Trauma Cover and Trauma Multi Cover
  • 3. Monthly Mortgage Repayment Cover which includes the Claims Escalation Option
  • 4. Level premium covers

1. Lump sum insured discounts

Discounts have been increased for lump sums insured of $500,000 or more. Life Assurance, TPD and Trauma all benefit from changes to our large sum insured discount.

What’s more, the sum insured discount applied to the Life Assurance is also applied to the accelerated TPD and accelerated Trauma cover regardless of its sum insured. A great reason to consider including one of these accelerated covers where it fits the needs of your customer. 

2. Trauma Cover and Trauma Multi Cover

Underlying rates have been reduced by up to 7.5% for ages 28-54.

3. Monthly Mortgage Repayment Cover which includes the Claims Escalation Option

Underlying rates for this combination have been reduced by an average of 7%2.

4. Level premium covers

For new business these updates flow through to our level premiums. 

When we say level term we mean level term!

Last week we emailed you about why our level term cover is worth a look. In case you missed it, here it is again! 

One of the key benefits of level term premiums is that they can provide customers with certainty about the future cost of their cover. 

While most life insurers in the market provide level term premiums for life cover, did you know Fidelity Life is one of the few offering level premiums for other covers such as trauma and income protection? 

And unlike other companies, we’ll only change our level term premiums for existing level term policies if there are tax or regulatory changes outside of our control which impact on the premiums. This means our level premiums provide customers with even more certainty. 

Changes to underlying rates and inflation? Still level.
If we need to increase our underlying level rates - because of the claims experience, for example - this won’t flow through to existing level term policies during the term selected.

And premiums will remain level for the term selected even if cover is increased with inflation each year through the CPI option. Where the CPI option is included cover will increase each year by a fixed 2% for the term selected - but, subject to tax and regulatory changes impacting premiums, the premiums won’t. 

Have you considered a mix of level premiums (fixed component) and age-related premiums (flexible component) to help increase certainty for your customers’ future cost of cover? 

How does our level term compare to others?

Level 5 Certificate video

Over the coming months you’ll be hearing more from us about getting ready for the new financial advice regime. To kick things off we’ve put together a great little video on the New Zealand Certificate in Financial Services Level 5.  

Holding the Level 5 Certificate demonstrates your general competence, knowledge and skill. Trecia Brown, Head of Professional Development at Fidelity Life, explains the Certificate and what you need to do to complete it.
View video

Making ACC part of your insurance conversation

Our ACC training sessions will help you make more informed recommendations to your customers. 

Session dates are below. Join us for tea and coffee from 9am, sessions start at 9.30am and finish at 12.00pm.

Session details
Date Location
2 October
3 October
4 October