Kiwi insurer Fidelity Life has introduced a series of product enhancements, surpassing initial promises made at the Engage 2023 conference in September. It marks the launch of six major enhancements, with an additional feature aimed at children’s coverage.
The newly added feature enhances the sum insured limits for children under life cover or trauma cover – standalone policies. This development is a direct response to feedback from advisers.
Firstly, the cover benefit percentages for monthly mortgage repayments have been raised from 110% to 115% of mortgage repayments, and from 40% to 45% of income. This adjustment reflects growing cost-of-living concerns.
Additionally, modifications to the Special events and Future insurability benefits include the elimination of certain exclusion criteria and the addition of new triggers. These triggers include scenarios like purchasing investment property or supporting a child in full-time tertiary education.
For the Key person new to business and Key person for farmers cover types, monthly coverage limits have been increased significantly. The limit for Key person new to business has risen from $4,000 to $6,500, while for Key person for farmers, it has gone up from $5,000 to $9,000, recognising rising labour costs.
There is also an additional repatriation benefit has been included in applicable life covers. This new feature provides financial assistance for repatriating a body to or from New Zealand, over and above the life cover sum insured.
Adjustments have also been made to the stand-down period for specified trauma conditions. For new covers, this period now commences from the date of a completed application submission, rather than the date of underwriting. This change aims to mitigate the impact of potential healthcare system delays on underwriting.
Finally, the sum insured limits for children have been significantly increased. The new limits stand at $250,000 for both life cover and trauma cover - standalone, a substantial increase from the previous $200,000 for life cover and $60,000 for trauma cover - standalone.
These enhancements are applicable to both new and existing customers holding Platinum Plus, Platinum Plus Level Term, or Mortgage Protector products.
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