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A New Year’s resolution for a self-confessed NZ life insurance junkie
2007-12-31 00:33:00
With 2008 fast approaching, I thought I would contemplate a New Year ’s resolution. Not that I’m one to make a challenging resolution, but a resolution of sorts is always a good way to start the New Year. So what did I learn this year that could make for a simple, easy-to-keep resolution for 2008? Well to start, I learned from my actuarial friends at Pinnacle Life that no-one’s ever been killed doing the dishes – so perhaps the simple task of doing more dishes this year would help my longevity. And with increased longevity maybe I could argue for a reduction in life insurance premiums? Then again most household accidents occur in the kitchen, so why would I resolve to increase the risk of a serious injury? Perhaps a little more spirituality would help my preparation for the inevitable. But alas, more church in itself won’t make me more religious any more than sitting at my desk makes me a more productive employee. Uhmm – Ok, I’ll sponsor a child in Africa - that ...
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Eat less, live longer…
2007-12-30 05:43:00
Ok, you won’t like this one… especially over the festive season. It seems if you eat less you’ll live longer. No… this is not about avoiding obesity. It’s about extending your body’s life at a cellular level! Whilst this has been known by scientists for some time, a recent study has started to shed light on why this is so.  The study suggests the anti-aging mechanism is linked to two enzymes—SIRT3 and SIRT4.  A low calorie intake kicks off a cascade of reactions, raising the levels of these enzymes and ultimately extending the life of cells. But wait, isn’t this a triple win? You pay less for food, you get to live longer and you get to pay less for you life insurance. Problem is, this outcome requires you to reduce your calorie intake by 30%~40%.  That’s huge!  Beg’s the question; “how much longer would you live if you did this?”  And what if you lived (say) an extra 5 years - wouldn’t it just seem like 50 years… 50 years of ...
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What’s ‘life insurance underwriting’?
2007-12-28 04:40:00
I’ve had several emails in the past 6 months asking for clarification about ‘underwriting’. So here goes; Before a life insurance company can offer you a life insurance policy, you usually need to be ‘underwritten’.  Simply put, this means that the insurance company must assess your risk of dying earlier than the average person of your age and gender. If, in their opinion, you are no more likely to die earlier than average, they’ll offer you a life insurance policy at the standard price. This is usually the price they quote you at the beginning of the process.  If on the other hand there is data suggesting you may die earlier than average, expect to be offered a policy on terms modified to suit your circumstances.  Generally this means an increased price or specific causes of death excluded from your policy. The job of assessing how likely you are to die earlier than average is carried out by an ‘underwriter’.  The underwriting process involves asking you a s...
More About: Life , Insurance , Life Insurance

Have a great festive season…
2007-12-23 05:46:00
From the authors of The Life Insurance Blog to everyone who is about to really, really, really enjoy the festive season… be happy, have fun and don’t be stupid. Without wanting to be a party pooper look at what can happen if you’re not careful. So have a great festive season, be responsible, look after yoursef and your family and above all… live a prosperous, happy, l—o—n—g life. Finally, as you go on your merry way these holidays, remember this; If you sleep with your married partner that’s Legal and General If you sleep with a friend that’s Mutual Trust If you pay to sleep with someone that’s Commercial Union If you sleep with several partners at the same time that’s Group Life If your partner lets you sleep around that’s Liberty Life If you’re still sleeping with the same partner after 20 years that’s Pinnacle Life!! Ed and Steve
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Where can you buy life insurance online?
2007-12-19 10:43:00
I’m constantly bemused as new websites keep popping up in NZ offering ‘life insurance online’. There is nothing much wrong with these websites – other than some of the claims they make. The big claim is that you can actually buy life insurance online.  True, you can… but not from any of these sites.  These sites all offer only the ability to apply for a policy online.  There is no policy at the end of the online process; only lists of things that will happen next, including being posted the application form for your signature. One of these sites recently announced via the media that “Now New Zealanders have the ‘real option’ of purchasing Personal Risk Insurance online”. Sadly, not true. Pinnacle Life remains the only website in NZ where you can actually buy a policy online… the only real option.
More About: Online , Life Insurance

More information but not more empowered
2007-12-15 23:29:00
I read this story in the Herald a few weeks ago which referred to a study suggesting that women, not men, “make almost all consumer purchase decisions and are typically household managers and accountants, yet they are financially clueless when it comes to investments and planning for retirement.”  Whilst I have no comment to make on this, what caught my eye in the story was a financial adviser and author quoted as saying “…there was more information about financial education and investments available now than ever before. But our financial health is getting worse. We make it harder than it has to be.”  I agree with this statement, particularly as it relates to life insurance. Today there is more choice.  In NZ there are at least 10 mainstream insurers offering life insurance products and today there is more and more information about these products. Not only is there more choice, but the choices are more complicated with more features and subtle differences. The pro...
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Laugh out loud… live longer
2007-12-10 09:22:00
LOL. A study in Norway suggests adults with a sense of humor outlive those who don’t find life funny. 54,000 Norwegians were asked about their sense of humour and then tracked for 7 years. The quartile with the funniest outlook on life were 35% more likely to survive the study period than those that were, ahem, grumpy. And for those people who had cancer at the beginning of the study, the gain was a massive 70%. Apparently there are plenty of studies that show laughter reduces stress, lowers blood pressure, relieves pain, oxygenates the blood and strengthens the immune system, all of which add up to increased longevity (LOL makes sense to me). Ten minutes of belly-laughter is believed to give the same benefit as a half-hour on a rowing machine (LOL I know which I’d pick). Just think of the implications for life insurance.  Imagine this question on a life insurance application form; “Have you ever been diagnosed with a sense of humour?… yes or no” Come to think of it, ...
More About: Live , Loud , Laugh Out Loud , Laugh

Blogs about blogs
2007-12-07 11:40:00
Love them or hate them… blogging’s all the rage these days. Anyone with an opinion is writing a blog. And since almost everyone has an opinion, there’s a lot of blogging happening.    So big has blogging become, that people are now blogging blogs about blogging and bloggers!!!   This story appeared on ReZoom about boomers that blog… offering a list of “40 bloggers over 40’.  Nice to see ‘The Life Insurance Blog’ right there on the list alongside David Gilmour (of Pink Floyd fame).  That left us boomers (Steve and I) humbled to say the least.  Also see this story in NZ Management Magazine about corporate blogging.  Blog blog bloggedy blog.  Love them or hate them. 
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Pinnacle Life welcomes Fletcher Building staff to its Partner Program
2007-12-05 23:47:00
Fletcher Building has joined our Pinnacle Life Corporate Partner Program . This follows several significant companies, including Diners Club Card, joining us in the past few months. Fletcher Building has an excellent staff discount program. It’s managed by way of a “Fletcher Building Staff Discount Card” – offering staff a wide range of exceptional deals that have been negotiated by the company on their behalf.  With around 9,000 NZ-based staff across 5 operating divisions (including the well known PlaceMakers) and more than 10,000 internationally-based staff, that’s a lot of deals just waiting to be taken advantage of!  We think a lot more companies should be doing this. We’re proud to announce Pinnacle Life is now a member of the Fletcher Building Discount Card program. How it works Fletcher Building staff can now buy a Pinnacle Life insurance policy directly on-line and automatically get 5% off Pinnacle’s normal rates - plus $10,000 free accidental death cover. ...

Seven tips for buying life insurance
2007-11-30 10:08:00
If you’re thinking about life insurance, here are some helpful tips:  1. Shop around – know your prices  Be aware that life insurance premiums can differ by up to 50% between insurance companies. Some of the Brands that you think should cost less, often cost more.  Pays to check out pricing yourself.  You can get quotes on-line form several on-line brokers.  If you get an online quote from Pinnacle Life , you automatically get 4 comparisons. Remember, life insurance is essentially a simple commodity with little to distinguish between products – you should not have to pay the earth for it.     2. Don’t buy ‘gobbledygook’  The language used in most life insurance contracts is a combination of legal mumbo jumbo and insurance-speak.  If it’s too difficult to understand, don’t buy it.  There are policies you can buy that are written in simple, plain English. That way you know what you are buying. See earlier blog post.  3. If you can’t afford the cover you ne...
More About: Buying , Insurance , Tips , Life Insurance

Gobbledygook
2007-11-26 05:16:00
We saw this clause in a life insurance policy the other day and we simply had to share it.   “If You don’t pay the premium when due, or the premium deduction from your account can’t be made, then if the unpaid premium was the first premium, the Policy will not operate at all, or if the unpaid premium was a premium other than the first premium, We will allow 30 days from the due date to make this payment. If We have not received payment by this time, We will send You a notice telling You that We will cancel Your Policy if the premium then due is not paid by the date shown in the notice. This date will be at least 28 days from the date of the giving of this notice. If You do not pay the premium by that date We will cancel the Policy and the insurance cover stops.”  Anyone who can make sense of it, we’d appreciate a translation…

Joint life insurance policy… who gets the money??
2007-11-20 20:38:00
Received this question from a reader and felt it was worth posting as a Q & A for other readers…  Q  My question is, if both die at the same time, what happens? I’ve been shopping around for a life policy for me and hubby and we could not decide if we should get one each, or a joint one. I don’t know if there is a payout if both die. If the answer is yes, does the payout go to the estate? And what if if both die and no ones knows this policy exists? Thanks A  If you have a joint policy and both of you die, then the policy pays on BOTH lives. This is the case if one person dies before the other (as is normally the case) or if both die at the same time (as sometimes happens in an accident).  Who does the payout go to?   The simple answer is “…whoever are named as beneficiaries in the policy”. (Note that under some policies the beneficiary is defined as the owner(s) of the policy so you may not necessarily see the term ‘beneficiary’.) Example… lets suppose ...
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Next Generation Of Electronic Underwriting - Scoop
2007-11-18 10:37:00
The launch of our electronic underwriting was announced in Scoop earlier this week. Scoop: Wednesday, 14 November 2007 Pinnacle Life today launched a next generation version of its electronic underwriting that should see a higher number of first-time applicants issued with immediate life cover.  See the full story in Scoop…
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Pinnacle Life launches next generation of electronic underwriting
2007-11-13 09:51:00
Pinnacle Life today launched a more advanced version of its electronic underwriting that should see a higher number of first-time applicants issued with immediate life cover.  Pinnacle Life first launched its direct-to-consumer life insurance with electronic underwriting in May 2007.  The buying process from application to issuing the policy is fully automated via its website, with consumers receiving their policies online. Visitors to the website are led through a series of typical insurance underwriting questions covering their health, lifestyle, occupation and pastimes. Those with no indicated health issues are covered instantly and receive their policy document electronically.  “To date, applications have exceeded expectations” according to Steve de Jong, a partner at Pinnacle Life.   The upgraded website boasts an increased range second-tier questions that get asked if certain primary health conditions are indicated during the application process.  The n...
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Is ‘underinsurance’ increasing?
2007-11-09 22:57:00
Growth in insurance premiums in NZ is reported by the ISI as 8% for the year ended September 2007.    See this article reporting life insurance growth in the NZ Herald yesterday.    But what does this really mean?  Is it a good result for the industry?  Can we all relax now?Let’s think about this logically for a minute.    We know that most life insurance policies are such that premiums increase automatically each year to take account of advancing age.  My estimations are that this would account for an increase of between 4% and 5%.  We also know that many policies have a clause that automatically increases the cover each year to take into account inflation.  In all probability, this would add a further 1%.    This means that if the industry did absolutely nothing… other than replace policies that lapse, we would in any event see a 5% to 6% increase in premiums collected.  So in real terms, the industry has only grown by around 2% or 3%… not good!  Now take...
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A life insurer’s most valuable asset…
2007-11-08 08:03:00
As people who work in the life insurance industry well know, one of the biggest assets a life insurer has is the relationship it has with its ‘reinsurer’.    Pinnacle Life ’s relationship with its reinsurer, Hannover Re, stretches back 10 years.    The Hannover Life Re underwriting team based in Sydney were instrumental in the development of the Intelligent Life online underwriting system that is at the heart of Pinnacle Life’s breakthrough offering.  In assisting us with our design, we asked Hannover Re to think outside the square, to think ‘innovation’ and to think ‘world first’.   They did.    We’re proud to be working with this team, without whom we would never have launched.  We’re also pleased the feeling’s mutual.    This from Hannover Life Re:        Hannover Life Re of Australasia (HLRA), Australia’s largest Life Reinsurer, are very proud to be affiliated with Pinnacle Life and Intelligent Life – Pinnacle’s internet base...
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“They’ll insure your life on the internet” - Business to
2007-11-07 12:35:00
Pinnacle Life was profiled by Barbara Weil in Business to Business online magazine this week.  The story reads…    “Two Newmarket based partners have developed a world first, making it possible to buy life insurance online. Ed Saul and Steve de Jong of Pinnacle Life are specifically targeting the internet savvy 1.3 million New Zealanders who buy online.  To check it, visit www.pinnaclelife.co.nz. “Life Insurance now joins travel, books, music and more as the latest online commodity and premiums can be up to a third cheaper than that offered by traditional insurers,” Steve explains.  “Even better, buying a policy online takes minutes instead of days and everything is in plain English – there’s no legal jargon that can confuse people.” ….”   See the complete article on the Business to Business website…
More About: Internet , The Internet , Sine

Genetic screening and life insurance
2007-11-02 11:57:00
This article on predictive testing for Alzheimer’s got me thinking. Genetic testing and screening techniques for a whole range of potentially deadly diseases are just around the corner.  We’ll soon know just how disposed we each are to dying of any number of diseases, simply through testing.   So what does this mean for the world of life insurance? The point of life insurance is to protect ourselves against the unknown.  We don’t know when we’ll die and we don’t know what will cause us to die… so we take out life insurance.  And what we pay for life insurance is based on statistics.  This is the domain of those mysterious people called ‘actuaries’.  Life insurers gamble on the fact that if our parents lived to a ripe old age and we have no symptoms of ill health today and we lead a good clean lifestyle, then we are likely to live at least as long as the average in our population.  In effect, the life insurer takes a calculated risk.  But what if tests co...
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Pinnacle Life offers an attractive employee benefit to companies
2007-10-30 11:34:00
If you’re an employer, you really should consider Pinnacle Life ’s online life insurance offer for your staff.  WHY OUR OFFER IS ATTRACTIVE     As a Corporate Partner, we’ll offer your staff a discount on our premiums as well as an added accidental death benefit, absolutely free.  And since our insurance premiums are already lower than the market average by around 13%, the added staff discount makes our offer extremely attractive.  HOW IT WORKS   Each employee can buy up to $500,000 of individual life cover from us online. It can be offered to staff as a ‘top-up’ to traditional ‘Group Life’ or as a substitute.  If a link is provided from the participating company’s intranet, we’re only one click away.  Staff can choose the amount of cover they need and take out the policy with us directly.  Other than offering staff access to our product and enabling the discount, the company is not involved.   WELCOME    Pinnacle Life welcomes the following compa...
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Lower life insurance premiums for midday nappers??
2007-10-15 13:38:00
According to this study, people who take short naps during the day cut their risk of dying of heart problems by at least a third.  The study was carried out by University of Athens researchers on 23,000 men and women aged between 20 and 86 and recruited in the period 1994 to 1999.  Researchers found that people who had a short sleep at midday had a 34% lower chance of dying from heart disease than those who stayed awake all day. The reasons given were pretty obvious - sleeping reduces stress which in turn reduces the risk of coronary heart disease. But what was startling about the research was the effect of a midday nap on ‘working’ men.  Regular midday sleepers in this group had a 64% lower risk of death from heart disease!!  So which life insurer will be the first to reward midday nappers with lower life insurance premiums?  Dream on…  
More About: Life , Insurance , Life Insurance , Lower , Remi

Pro’s and con’s of a joint life insurance policy
2007-10-03 00:37:00
A joint life insurance policy is where two people’s lives are covered under the same policy. Who does this?  Typically a husband and wife will collaborate to buy a joint policy.  If either one dies, the policy will pay out.  Why is a joint policy a good idea?  Simply… it’s efficient.  Both partners can be covered under a single policy.  This is usually reflected in the price – one policy costs less than two policies – basically the life insurer will charge less because there is one policy, only one payment to collect and so on.   What’s the problem?  There is no problem… UNLESS there is a separation or a divorce and the situation becomes acrimonious.  In order to split the policy into two policies or make changes to the beneficiaries of the policy or to change the level of cover, or make any change to the policy whatsoever, you have to have the written AGREEMENT of all the owners of the policy - elusive in the circumstances wouldn’t you say?  And...
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Eating chocolate may halve risk of dying
2007-10-01 12:09:00
According to this Dutch study reported in New Scientist, regular consumption of cocoa may lower blood pressure and halve the risk of dying. The study was carried out over a 15 year period and focused on men aged over 65. Those men that consumed the most cocoa were half as likely to die from a heart attack. It seems cocoa-containing antioxidant chemicals, called flavanols, may be the cause. “Flavan-3-ols have a positive effect on endothelial function [the function of cells lining the blood vessels] improving the elasticity of the blood vessels so that they respond better to changes in the blood stream. Good news indeed for chocoholics – but don’t get your hopes up.  Low cost life insurance for choc-lovers is still a long way off.  
More About: Chocolate , Risk , Dying , Eating , Choco

Sex and Longevity?
2007-09-30 08:11:00
Recently I mentioned to a friend that I was blogging life insurance. His retort “if it ain’t sex, nobody’s reading it”. So I thought I would google “Sex and Longevity ” and found this from Mark Stibich, Ph.D., Your Guide to Longevity. Having read it, I challenge you to come up with the question that we could use in assessing your life insurance rates? While Taoism and other philosophies teach that preserving sexual energies extends life, the opposite just might be true. Sex releases several hormones in the body, increases intimacy and bonding, and works against loneliness and depression. Staying sexually active has physical, stress relieving, social and mental benefits. According to the RealAge books, frequent orgasms (about 100 per year) can increase life expectancy by 3-8 years, however, keep in mind that the science on this is somewhat spotty. Studies show that men with a high frequency of orgasms have a 50 percent reduction in mortality risk. T...

A matter of life or death?
2007-09-23 00:11:00
“Souldn’t life insurance be called ‘death insurance?”, a consumer asked me recently.  You could call it that.  But that would be like calling car insurance ‘accident insurance’… which we don’t.  Just as ‘car insurance’ insures your car against the possibility of an accident… ‘life insurance’ insures your life against an untimely death.  So I’d say ‘life insurance’ is the appropriate product name.    Actually, if you think about it, what you are buying with life insurance is ‘time’.  Most people intend providing for their old age in one way or another through retirement funds and investments.  But the problem you have preparing for your death (as opposed to retirement) is that you simply don’t know when it will occur - it could happen today… or maybe in 70 years or anywhere in between.    Life insurance buys you the assurance that if you die today, money you...
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The caffine death calculator!!
2007-09-20 21:39:00
Yep, now you can calculate how much coffee or how much of your favourate energy drink it will take to kill you.  Pretty accurate too - rounding to two decimal places.  See this ‘death by caffine‘ website. I checked to see how much ‘Diet Vanilla Coke’ it would take to knock me off and the answer is… 250.78 cans.  And thankfully I can enjoy 146.55 espresso coffees and live to tell the tale.  At 146.56 cups, I’m gone.  I wonder why it is that life insurers dont ask “how much caffine do you ingest?” as one of the health and lifestyle questions on the application form for life insurance? 
More About: Calculator , Death , Caff

Watching the Rugby World Cup can kill you
2007-09-05 04:58:00
The upcoming Rugby World Cup isn’t all fun and games. For some people it will be a matter of life and death, literally. Did your heart “flutter” as Conrad Smith and Luke Mc Alistair were announced as the centre pairing for the opening All Blacks game?  Cardiac arrests, drunk-driving, binge boozing, smoking, gorging on fatty snack foods with no exercise… are some of the things that’ll greatly increase during the RWC. According to a study in the British Medical Journal, the number of heart attacks in Britain rose by 25 per cent when England lost to Argentina in a penalty shootout in 1998. Call it a case of Beckhamitis. The British needn’t worry this time around though… even their most ardent fan is not expecting much from the English team. A Swiss study found a 60% increase in cardiac arrests among the general adult Swiss population during the broadcast of the 2002 FIFA World Cup.  Psychological stress and anger are documented triggers for heart attacks. It gets wor...
More About: Watching , Rugby World Cup

Life expectancy
2007-09-03 10:52:00
Wonderful. Now you can estimate how long you’re likely to live using this “life expectancy calculator” More user-friendly than a crystal ball… but probably less accurate!!!   Our considered recommendation:  Do not use this calculator to plan your future or to work out if you need life insurance.
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Life insurers demand sensitive files from doctors
2007-09-02 11:39:00
The Sunday Star Times ran an article today entitled “Insurers demand sensitive files from doctors”.  So did Yahoo/Xtra News. Interesting question highlighted by these articles… is it appropriate for an insurer to seek all your medical records from your doctor? Well…no.  When you apply for life insurance you’ll answer several questions on the application form about your health, your lifestyle, occupation and pastimes.  The reason for this is that insurers have to assess what risk they face if they cover your life.  The stakes are usually high – life cover for hundreds of thousands of dollars, sometimes millions.  If you indicate you have health issues, then the insurer may need more information – and the most reliable source of this information is the medical file held by your doctor.  It is therefore entirely appropriate for the insurer to ask for the medical records relating to the medical condition you highlighted. Based on these records, t...
More About: Life , Doctors , Files , Demand , Sensitive

Life Insurance Awareness Month
2007-09-01 08:04:00
August was Life Insurance Awareness month in the US.  This from YouTube… It’s true, they dedicate an entire month to making people aware of the importance of life insurance.  Apparantly there are more than 60 million Americans that need life insurance, but don’t have any.  That’s around 1 in 5 Americans.  Unfortunately the ratio is no better in NZ.  How about a Life insurance awareness month in NZ?? �
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Failing Finance Companies - does it impact life insurers?
2007-08-30 23:24:00
PWC are about to announce their fifth finance company to go into liquidation over the past 15 months. Politicians are scrambling to “find solutions” to this “investor crises”. It has been suggested that the new Fina ncial Products and Providers bill be brought forward from its scheduled parliamentary hearing date in December, so that the new conditions and regulation for financial products and their providers comes into effect sooner rather than later. [Ref: Dalziel considers advancing new disclosure rules - NBR] Unfortunately the proposed bill tangles up Insurance companies with Finance Companies under a broad category of “Financial Services”. This leaves life insurers potentially attracting some of the adverse publicity currently surrounding investment companies. A life insurer collects a monthly premium to cover an insured event – its financial security relates to its claims-paying capability which is a far cry from the risks associated with i...
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