Income Protection Insurance companies NZ

In New Zealand there are many insurance companies. Some of them offer income protection policies. In this article I am going to discuss with you what you have to take into consideration when you choose which one is going to be the right fit for your income protection insurance.

I am going to take you through the same process of evaluation of Income protection insurance companies I had to go through one day a few years back when I was choosing the companies to work with.

Income Protection Insurance companies – best fit?

The first thing to consider is financial rating of the company. This is important due to a few reasons: the better financial ratings are the stronger the insurer is. The downside of the highly rated insurer is that you pay higher premiums for your Income Protection Insurance . The good thing to be insured with highly rated insurer is that you know that you have more certainty in outcome and you know if something goes wrong with a few years later you are most certainly going to receive the benefit.

For my work I prefer to use big four Income Protection Insurance Companies: AMP, Asteron, Fidelity Life and Sovereign. The reason for it is simple – I want my clients to have the best suitable income protection for their needs and by using one of Income Protection Insurance companies I have mentioned above I know that the “perfect fit” is easy to find.

It is important to understand that insurance companies specialise on certain type of clients. It can be compared to risk exposure and if Income Protection Insurance company does not have the “knowledge” of the particular risk (read occupation of the insured or age or even ethnicity) the insurer is not comfortable to offer the solution or simply provides increase premiums.

Income Protection premiums for builders is higher than for accountant

Income Protection premiums for builders and accountants are different

Many people due to very limited knowledge about income protection industry make one obvious mistake judging all income protection policies on the base of premiums. Often people compare income protection policies on the base of premiums rather than on the base of occupations. Think about a builder and an accountant – would you agree that their risks are different and therefore premiums income protection insurance companies charge should also be different.

The best way to insure that you are going to get the best deal on your Income Protection should be structured and possibly even have stages.

Income Protection Insurance – step by step instruction

  • You email to me your full date of birth, your occupation and current level of income. Next working day you are going to get a set of comparable quotes from different insurers. This step would allow you (and me) to know which insurer is better fit for your income protection in accordance with all the factors above.
  • The second step is to apply to the most suitable insurer for your income protection insurance policy. Once the underwriting is complete you decide – you want to proceed with the cover or note.
If due to your personal circumstances underwriting was not as favourable as you wanted and hoped it to be and your policy offer came back with “loading” (“loading” means that you are going to pay higher premiums to consider to standard rates).It is better to apply to a second best insurer and complete the underwriting again. All Income protection insurance companies have different appetite to a particular risk or how they often call it “risk exposure”. For instance one company would provide you with “loaded” offer due to your Hepatitis “B” you had as a child while other would see your application as standard. Or the second example can be your weight to height ratio.
  • Third factor to consider is the policy wording. Some of the Income protection insurance companies have more attractive income protection benefits definitions to compare to others. Some, for instance pay “Specified injury” benefits while others allow you to have better structure income protection insurance combined with ACC benefits.

If you want to know which company is going to be the best insurance provider for your circumstances – email to me when you would want to discuss your income protection needs.

Income protection from Fidelity Life, Asteron Life & AMP

Personal Income protection quote

Name

Email

Phone

DOB

Occupation

Smoker status
 smoker non-smoker

Benefit period

Waitnig period

Monthly Income

Below you can compare Income Protection Insurance companies financial ratings:

Company Rating Description
AMP AA-
(Very strong)
Financial strength rating given by Standard & Poor’s Australia Pty Ltd.
Asteron A+
(Strong)
Financial strength rating by Standard & Poor’s. The Ratings Outlook is Stable.
Sovereign A+
(Superior)
Financial strength rating from A.M. Best* – an approved insurance rating agency for over 100 years. The financial strength rating is an assessment of an insurer’s ability to meet obligations to policyholders.
Fidelity Life A-
(Excellent)
Credit rating from A.M. Best.  The rating has remained unchanged since December 1996.
strong.

 

Ratings description from Standard & Poor’s Australia Pty Ltd.

Plus (+) or (-) signs following ratings from ‘AA’ to ‘CCC’ show relative standing within the major ratings categories. 

“AA” – An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The obligor’s capacity to meet its financial commitment on the obligation is very strong.
“A” – An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor’s capacity to meet its financial commitment on the obligation is still strong.

Ratings description from A.M.Best.

“A+” Assigned to insurance companies that have, in our opinion, a superior ability to meet their insurance obligations.

“A-“ – Assigned to insurance companies that have, in our opinion, an excellent ability to meet their insurance obligations.

I want to discuss my Income Protection

My name*

My phone number*