Income Protection NZ News

Premium rates for life cover sold by advisers in decline

Source: Money Management: 26 Oct 2012

Premium rates for life cover products sold by financial advisers fell by an average of 10 per cent across 11 leading insurance providers between December 2004 and June 2012, according to a joint study by Clearview and Plan For Life.



With the premium averaged across four ages (35, 40, 45 and 50 next birthday) and three sum-insured amounts ($250,000, $500,000 and $1 million), one insurer recorded as much as a 23 per cent decline in average rates for a male non smoker, while only one showed an increase in average rates (by 2 per cent).



The report also found for the same cover there was a 16 per cent fall in the highest average premium charged in 2012 compared to 2004.



Since 2004, the difference between the cheapest and most experienced product, for equivalent cover, could be as much as 30 per cent in some years. Since 2011, this gap has decreased to about 14 per cent, the report found.



"The falls can be partly attributed to improving mortality rates over time," Clearview head of product and underwriting Clive Levinthal said.



"However, I believe the main driver is margin squeeze caused by competition from good broking activity by independent advisers."

Money Management

Insurance Articles

Business Interruption Insurance - Some things you need to know. In this article, we will discuss the importance of business interruption insurance and why every business should be prepared for... read more Types of Insurance Policies Every Business Owner Should Consider Protecting business investment with insurance is a critical part of every sensible business owner's business plan. Insurance protects... read more Compare Health Insurance Policies for Pre-Existing Condition Coverage Understanding your health insurance options can be confusing to begin with. If you or someone you love suffers from a pre-existing... read more Understanding the Need for Public Liability Insurance for Businesses Public liability insurance covers the claims made against the business by the public or any third party, who suffers a loss or injury... read more Disability Insurance vs. Health Insurance When faced with the option of whether to purchase disability insurance, many consumers say no without fully understanding the... read more Health Insurance Secrets There are a number of very important things that most people either don't know or just simply don't consider when buying or reviewing... read more

Start Here !

Apply now for your free Income Protection Insurance assessment and price comparisons!

Monthly Income Benefit:

Postcode:

All quotes are provided free and without obligation. We respect your privacy.

Knowledgebase

Subrogation: An insurance carrier may reserve the "right of subrogation" in the event of a loss. This means that the company may choose to take action to recover the amount of a claim paid to a covered insured if the loss was caused by a third party.