…just ask Ferrit…

We’re big supporters of online innovation – in our view online services and shopping has a big future in our changing world. So we’re truly sorry to see the demise of Ferrit, the online shopping portal that was established a few years ago by Telecom, one of NZ’s largest companies.

Ferrit’s demise however is typical of large corporations with squillions of dollars and expertise to burn, failing to get their online shopping portals into full flight. Telecom spent a fortune on advertising the Ferrit nerd, to no avail. Why? 

In our humble opinion successful ventures on the internet need to break from the traditional. It’s not about trying to find niche’s. Even Ferrit’s advertising campaign tried to focus on a market segment it “presumed” bought on-line. The strategy of “focusing on medium sized retailers looking to go on-line” is MBA-speak for “I think we found a gap in our competitive analysis grid that we can sell to our Board” Reality check, any retailer, no matter what size can retail on the internet, barriers to entry are low. Shopping basket applications can be found on freeware.

Why are we on about this?

Because the same principles apply to online life insurance companies… those insurers that have simply tried to push their old, complicated, legalistic insurance products online or through online insurance brokers will always struggle. Old products and new distribution channel don’t necessarily mix.

The ‘little guy’ can take heart… deep pockets and top staff alone don’t make for a successful online venture. Profitable web offerings capture the imagination of the consumer in the purchasing process. (Think TradeMe).

It’s a shame about Ferrit though….BTW, Pinnacle Life did try to get onto the Ferrit shopping list again and again, with no success. Seems they were more interested in selling bricks and mortar.

Pinnacle life now partners with Diners Club – see Diners Club website for more details.

So what does this mean for Kiwi’s that buy life insurance from Pinnacle Life with their Diners Club Card?

• Firstly, you’ll get a discount off the Pinnacle Life retail online prices, reducing your payments by up to 20% lower than the market average.
• Secondly, you’ll receive an additional $10,000 accidental death cover free of charge for any Life Cover or Mortgage Cover policy purchased as a Diners Card member.

Check out their website to see the range of benefits and services offered to cardholders… including online life insurance… of course!

What is Serious Illness Cover?

Serious Illness Cover is a straightforward insurance policy that pays a cash lump sum if the insured person suffers one of the illnesses covered by the policy… and lives!

Some insurance companies call this product ‘Trauma Cover’, but medically speaking this name doesn’t describe the product very well… the product doesn’t actually cover ‘trauma’.

This product is also known as ‘Critical Illness Cover’ or ‘Major Illness Cover’ both of which describe the product well.    

What illnesses are typically covered?

Different policies cover different illness conditions, but the ‘big four’ illness conditions common to all serious illness policies in New Zealand are;

·         Heart attack

·         Cancer

·         Stroke

·         Heart bypass surgery.

These ‘big four’ illness conditions typically account for 90% of payouts to serious illness claimants.

Who buys Serious Illness Cover?

People who are struck down by a serious illness such as cancer, a heart attack or a stroke often take a financial blow at the same time. They often have to take time off work or reduce their work hours and ease up their lives. Or they may face medical bills or need extra cash to make fundamental changes to their lifestyles. Maybe they even want to down tools and take a holiday!

So if you’re concerned about facing financial stress in the event you suffer a serious illness, this may be just the product for you… a product that pays you a cash lump sum on diagnosis.

Cash to do whatever you like with.   

How can you get a Serious Illness Cover policy?

Serious Illness Cover is now available from Pinnacle Life, online.

If you’re between the ages of 20 and 59, you can buy Serious Illness Cover up to $250,000 online in less than 10 minutes.

Consumer.org.nz has just updated their price comparisons for life insurance and we’re pleased to say that Pinnacle Life looks very sharp… as if we doubted it! 

In brief;

• Out of 21 quotes for an individual life insurance policy, Pinnacle Life was far and away the lowest price.  
• The closest bank was 18.4% more expensive than Pinnacle Life for the same cover.
• The most expensive quote was from one of the largest life insurance companies at 59.1% more expensive than Pinnacle Life, also for the same cover!

We recommend that you take a look at the consumer coverage and if you’re not a member, we suggest you take up membership so you can access all the relevant information on their excellent website www.consumer.org.nz.

They suggest you should ‘shop around’ for life insurance because of the variation in prices. We agree!!

Saw this question on a New Zealand financial chat forum called NZ MoneyTalk.

Question

“When applying for life insurance, what kind of activities are considered risky behaviour, such that they will either increase the premiums that you have to pay, or else you get completely refused for life insurance?”

Answer

These are typically the pastimes that life insurance companies consider to be ‘risky…

·         Abseiling

·         Competitive car, bike or powerboat racing exceeding 150kph

·         Hang gliding or other self launch flying

·         Micro-light or ultra-light flying

·         Mountaineering or outdoor rock climbing

·         Private (fixed wing or helicopter) flying exceeding 80hrs per year

·         Scuba diving deeper than 30 meters

·         Skydiving or parachuting

·         Trans-ocean racing

Insurers don’t have exactly the same lists but they are pretty similar.

The life insurer will cover you if you die as a result of one of these activities… but you will pay extra for the cover. If you choose not to pay for the extra cover, then you will not be covered if you die as a result of the risky activity.