Welcome to our October 2011 newsletter
In this issue we wish to discuss changes to Financial Regulations, some Life insurance options including premium payback, KiwiSaver and of course the rugby.
Financial Regulation
From 1 October 2011, all financial advisers in Canterbury became regulated under the new rules administered by the Financial Markets Authority (FMA) already in place throughout the rest of New Zealand. These new rules have been introduced to help promote confidence and protect consumers who seek financial advice.
All advisers must be registered on the Financial Service Providers Register (www.fspr.govt.nz) and if they advise retail clients they must belong to a dispute resolution scheme. Those who advise on investments must also be licensed by the FMA and meet minimum qualifications and professional standards.
As a reminder, the new rules provide for three types of advisers:
Authorised Financial Advisers (AFA). AFAs can advise on more complex investment products and can also offer investment management and planning services. We are pleased to advise that Ian Greig and Kevin O’Gorman are AFA status and Lance and Steve are almost finished meeting the legislative requirements to become AFA’s.
Registered Financial Advisers - (RFAs). RFAs can provide advice on products including insurances and loans. Brennen Lewis will continue to be an RFA and will continue to provide specialist advice on all personal insurance needs such as life, medical, income protection and mortgage requirements for our clients.
Qualifying Financial Entity (QFE). The likes of Banks and life insurance companies are operating under this structure and they take responsibility for their staff and any advice they provide. We have chosen not to join a QFE as it would remove some of our ability to place your business without restrictions or obligations to any particular insurer.
The Christchurch Insurance Centre has a mix of both AFA and RFA registered advisers. All of our advisers continue to offer the same service excellence you have received in the past and you can be assured that going forward our robust processes will help you to identify your insurance and investment needs in a clear concise way.
Life Insurance
As a nation we are recognised as being underinsured and many people put this down to either cost, the perceived complexity of the application process or poor health which may mean that any application will be declined or deferred. Recent product innovations may provide the solution for yourself or close family who have deferred applying or topping up their cover to ensure loved ones have financial security.
Let’s look at two of the options.
Dorchester Life recently introduced EasyLife. This product could be of particular value where you don’t require high levels of cover, and/or your health or lifestyle may prevent you from obtaining mainstream Life Insurance protection. Some highlights include:
Ø Accidental Death cover in the first 3 years – pay sum insured
Ø Death by natural causes in the first 3 years – refund all premiums paid
Ø Death by any cause after 3 years (except Policy Exclusions) – pay sum insured
Ø Sum insured options of; $15,000, $20,000, $25,000 or $30,000
Ø Accelerated Funeral Advancement benefit of $5,000
Ø Automatic acceptance for cover
Ø Anyone aged 16 to 49 will be automatically accepted which means no fitness or medical tests
Ø Only one simple application form and lots of payment options to suit your needs
Ø Cost effective Premiums.
AIA on the other hand have a cash back Life cover which is unique in that it has a premium return option and a twenty year term. It provides a partial refund of your premiums after six years through to a 100% refund of your premiums after 20 years if a claim hasn’t been made.
If you think the AIA policy through, this could be seen as a savings facility where it gives you financial protection when you need it but as your circumstances change, you have a nest egg building up. Somebody in their mid forties could see this as a chance to reduce debt or to pay for an overseas trip at retirement. A savings plan or a life policy built into one is unique in today’s market!
These life insurance options are both worthy of further investigation to see the relevance with your personal financial circumstances and our experienced advisors can talk you through the options. Ph 03 3796847 or email admin@supernz.co.nz to contact us.
Kiwisaver
In recent weeks several KiwiSaver providers have been distributing their annual reports. These reports provide overall company information and not personalised balance reporting. There have been fund movements in recent months due to the continuing global financial issues and we must remember that KiwiSaver is a long term financial savings plan. Please give us a call if you wish to obtain your up to date balance figures or to discuss fund performance.
As we near the end of the year and see many young people entering the workforce, it is timely to reiterate the benefits of regular saving and KiwiSaver membership. In particular New Zealanders like to own their own homes and KiwiSaver membership is a great way to speed this up.
After being in KiwiSaver for three years, members can apply to withdraw any contributions they have made plus any employer contributions to use towards the purchase of their first home.
KiwiSaver members may also be entitled to a first home purchase subsidy of $1,000 for each year they have been contributing to KiwiSaver, up to a maximum of $5,000. Eligibility criteria apply and this is detailed at www.hnzc.govt.nz.
Thinking about Christmas gifts for the children? Why not consider making a one off or a regular contribution to their KiwiSaver account to help them achieve home ownership sooner.
Please contact us if you have any questions regarding your KiwiSaver account. Ph 03 3796847 or email admin@supernz.co.nz to contact us.
Rugby
In recent weeks New Zealand has been the focus of the Rugby World Cup and many of you may have been to see games at various locations around New Zealand. What a difference in the semi finals. The AB’s had a fantastic game and the French were dreary.
We wish the AB’s well for Sunday.
We are available to discuss your insurance, home loan and investment needs in what is a difficult time for many of us at the moment so please feel free to contact us if you have any questions.
Give us a call on 03 377 3693, 0800 572 387 or email us at admin@supernz.co.nz
We look forward to hearing from you soon.
Kind regards
Kevin, Ian and the team.
We can provide and specialise in:-
Life Insurance Health Insurance Income Protection Savings & Investments
Home, Contents and Vehicle Insurance Home Mortgages KiwiSaver
Home Equity Release (Sentinel) UK Pension Transfers
98 Carlyle Street Sydenham Christchurch
03 379 6847 0800 4KSAVER 0800 572 837 www.supernz.co.nz
This newsletter is issued as a Class Service in terms of the Financial Advisers Act 2008 and is not a Personalised Service.
A copy of our disclosure statements can be downloaded from www.supernz.co.nz
Web design New Zealand by Acclipse / Site Map / Disclaimer / Copyright © Christchurch Insurance Centre