Trauma and income replacement price changes.
Effective from 1-June 2023.
What's changing?
From 1-June 2023, we’re increasing the underlying premium rates of our trauma and income replacement covers by 2%.
This applies to:
- New business and existing Platinum Plus, Mortgage Protector, Platinum, Fidelity, and Lumley product covers.
- New business Platinum Plus Level Term covers.
This does not apply to:
- Existing Platinum Plus Level Term covers.
- Ex-Tower covers.
- Waiver of premium covers or Investment type covers.
Future projections.
Until 1-June 2023, projections shown in the Illustration for year-2 and beyond will only reflect the current rates. This means that any selection of trauma or income replacement type covers, will not include the 2% increase. We’ll soon be making a change to the Illustration document, that will come into place in early May, to highlight this more clearly to customers.
Please make your customers aware of this by letting them know that ‘if they’ve selected trauma or any income placement type covers, the price shown from year- 2 and beyond is underrepresented by 2%, due to an incoming price change’.
From 1-June, the Illustration will then reflect the 2% increase with all future year projections, accurately represented.
Existing customers.
- New premiums will be reflected in renewal letters of affected customers for policies renewing from 1-June 2023.
- Customers will start to receive their renewal letters 6-weeks prior to renewal. This will come into effect from 20-Apr 2023.
- A new webpage that helps customers understand their options and what help is available from you and our Customer value team.
- New insurance 101 article. We know the cost of living is impacting many New Zealanders, so we’re helping customers understand their options.
New business and Apollo.
The new premium rates will come into effect in Apollo and will be reflected in your Illustrations from 1-June 2023.
Illustrations completed before 1-June 2023 will continue to be honoured for 30-days from the date on the Illustration in the usual way, for first year premiums, as well as any completed applications submitted before 1-June 2023.
Tools to support customers.
We realise times are hard for many New Zealanders. If customers are facing financial difficulty and concerned about paying premiums, there are options we have available that can help lighten the financial load and keep their policy in place.
Click below or contact our Customer value team on 0800 88 22 88.
FAQs.
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From 1-June 2023, we’re increasing the underlying premium rates of our trauma and income replacement covers by 2%.
This increase applies to:
- New business and existing Platinum Plus, Mortgage Protector, Platinum, Fidelity, and Lumley product covers.
- New business Platinum Plus Level Term covers.
This increase does not apply to:
- Existing Platinum Plus Level Term covers.
- Ex-Tower covers.
- Waiver of premium covers or Investment type covers.
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We don’t like increasing prices but as a responsible and ethical business it’s important that we maintain our promise to be here for customers at claim time. Unfortunately, this means that we need to increase the underlying premium rates of our trauma and income replacement covers.
This decision is based on a review of our claims experience, where we discovered that our income replacement and trauma claims costs are higher than anticipated. In order to ensure the long-term sustainability of these covers, we must make adjustments to their underlying premium rates.
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The last time we updated our rates was in August 2020.
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The new premiums will be reflected in affected customers’ renewal letters for policies renewing from 1-June 2023 – these are being sent 6-weeks in advance, from 20-April 2023.
Premium increases often lead to customer discussions about affordability and needs. To ensure that customers receive meaningful advice that considers their circumstances, these discussions are best had by financial advisers. We’re focusing on helping you, our financial adviser network, to understand these changes so you’re equipped to answer customer questions.
A list of all customers renewing will be available in Adviser Centre. Speak to your Business Manager to show you how to access this information.
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As always, we encourage customers to seek financial advice that considers their circumstances, affordability and needs.
After that, it depends on their individual circumstances and you’re in the best position to advise them on their options. We offer financial hardship options – for more details go here or contact our Customer value team on 0800 88 22 88 or assistance@fidelitylife.co.nz
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Yes, we believe our covers offer customers a good range of features and benefits at a reasonable price to help meet their needs.
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As per our usual practice, Illustrations completed before 1-June 2023 will be honoured for 30-days from the date on the Illustration for first year premiums, as well as any applications which are already in the new business pipeline. All new Illustrations generated in Apollo on and from 1-June 2023 will have the new premium rates for these covers applied.
Please note that until the new pricing goes live on 1-June, premium projections for year-2 and beyond will not reflect the price change.
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We never like raising our prices, but a review of our claims experience has found that our income replacement and trauma claims costs are higher than anticipated. Mindful of the high cost of living impacting many New Zealand households, this 2% increase was intentionally kept as low as possible, but will help ensure we keep our promise to customers at claim time by improving the long term sustainability of these covers. For customers experiencing financial hardship, we have options to help keep their protection in place. Learn more here.