Fidelity Life Powers up Income Protection

Fidelity Life Powers up Income Protection

New Zealand’s largest locally-owned life insurer, Fidelity Life, has today launched three new enhancements to its income protection products which aim to power up its competitiveness and benefit customers.

The new enhancements, which are the focus of a campaign for financial advisers called 3-2-1-Go!, are:

3. Improvements to waiting period conditions

2. Payment of the Total Disability Benefit fully in advance

1. Agreed Value replacement ratio is now calculated on a tiered basis

Fidelity Life Chief Distribution Officer Adrian Riminton says the enhancements are a direct response to feedback from financial advisers.

“We’ve listened to the feedback we received from the market and made some important improvements to our income protection products which aim to boost our competitiveness and provide even better outcomes for customers. With these enhancements, advisers can be confident that Fidelity Life Income Protection products are now better than ever.”

In addition to the enhancements, Mr Riminton points to three unique features of Fidelity Life Income Protection:

1. Fidelity Life Personal Income Protection (Agreed Value and Indemnity Value) is the only product in the market which allows customers to keep working up to 10 hours per week, if they need to, without affecting their monthly benefit payment;

2. Fidelity Life is the only provider to offer a Claims Escalation Option[1] which increases claim payments on a quarterly, as opposed to annual, basis to protect customers against rising inflation; and

3. Fidelity Life is the only provider to offer an Extended Benefit Option1 which continues to pay a claim beyond retirement if customers have a severe disability which lasts beyond retirement age.

The 3-2-1-Go! campaign is supported with a range of new tools and resources to help advisers understand how Fidelity Life Income Protection products stand out in the market, and how they benefit customers.

These include a Product Guide, a Sales Guide and an Enhancements Summary, and can be downloaded from a new adviser webpage at fidelitylife.co.nz/advisers/march2018

The enhancements apply to some existing Fidelity Life Income Protection policies, and to new policies written from 14 March 2018[2].

“At Fidelity Life our purpose is to protect New Zealanders’ way of life,” says Mr Riminton. “Working closely together with financial advisers, the motivation behind these enhancements is to help Kiwis protect what is probably their most important asset – their income.”

Enhancement Details

Details of the three enhancements are:

3. Improvements to waiting period conditions - the requirement that the customer must be totally disabled for the first two weeks of their waiting period has been removed. This helps encourage customers to continue working, if they can.

2. Payment of the Total Disability Benefit fully in advance - the monthly benefit will now be paid fully in advance, instead of paying only 50 per cent in advance[3]. This makes it easier for customers to understand how much they’re getting paid, and when, so they can better plan their recovery.

1. Agreed Value replacement ratio has been updated - the Agreed Value replacement ratio for new policies has been updated to a tiered calculation. This means customers will be insured for a higher benefit in line with their income.

Notes

[1] In return for an additional premium

[2] These enhancements apply to Platinum Plus, Platinum Plus Level Term and Mortgage Protector, and will come into effect for existing and new policies from 14 March 2018. Existing policies are Platinum Plus, Platinum Plus Level Term, Mortgage Protector, Lumley and Protection plan policies sold on or after 1 April 2001.

[3] Does not apply to Business Expenses Cover.

Disclaimer – the information contained in this document is a convenient summary of the key points and is general in nature. Definitions, benefits, standard exclusions/limitations, terms and conditions are contained in the full policy documentation. Please refer to current policy wordings for specific details.

ENDS

About Fidelity Life

Fidelity Life is a New Zealand-owned insurance company with the purpose of protecting the New Zealand way of life. The company believes independent financial advice matters in ensuring Kiwis get access to the insurance protection they need. Fidelity Life distributes its products through a network of 2,700 independent financial advisers, as well as through strategic alliance partners, and employs around 300 staff across six offices. In early 2018, Fidelity Life received a significant $100 million investment from the New Zealand Super Fund to drive further innovation and growth. It was named the New Zealand Life Insurance Company of the Year in 2017.

For more information please visit

www.fidelitylife.co.nz

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