The Warehouse mailer serves up life policies
The Warehouse is now aggressively selling term life insurance policies to its customers.
Thursday, September 9th 2004, 6:47AM
Well, to be accurate, from a kiosk inside 85 of the retailer’s “red sheds”.
The Warehouse’s latest mailer to hit letterboxes is not only selling pots and plants for spring, but “Kiwilife” – a life insurance packagethat is underwritten by Sovereign Assurance.
Simon Swanson, managing director of Sovereign, says the product has been available for at least three years and Sovereign provides the same sort of product to a number of other players.
Direct marketing like The Warehouse mailer is considered a normal channel for selling term life insurance. Once an application is received it goes through the same processes as if a broker had lodged it, Swanson says.
The Warehouse life policy deals start at $9.99 a month and rise through $14.99, $24.99 or $34.99, based on what the applicant wants, gender and age and whether he or she smokes.
“There are some simple questions to answer about your health and pastimes and most people can be covered,” the advertisements say.
Kiwilife is being offered as part of The Warehouse’s Financial Services division which is a joint venture between The Warehouse Group and Westpac.
Kiwilife is aimed at anyone aged between 18 and 64, though the cover continues to 75.The initial premium is fixed for five years and at that point the premium can be raised or lowered.
If the policy owner dies, The Warehouse says it will immediately pay out $5,000 and the rest usually within a month.
The pitch is that a policy can cover debts like a mortgage, hire purchase or credit card, pay for funeral and legal expenses and future proof for children’s education or the family left behind.
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