tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Monday, May 25th, 3:08PM

News

rss
Latest Headlines

What to worry about

While it seems that the only thing to talk about in the financial services industry is regulation if a client has consented to a discussion about risk then we had better remember to talk about their concerns. What kills you can often be different to what makes you disabled, but it is scarier, and in fact overlaps a great deal. Here are the numbers to tell us what a connected Kiwi will most likely have witnessed take the life of a friend or acquaintance.

Friday, March 13th 2015, 6:00AM

by Russell Hutchinson

Although 30,000 New Zealanders die each year, that is to be expected.

"Early death" is more important - usually death within a working life ā€“ in 2011 that was just over 8000 deaths a year.

But for the peak years of insurance buying the range is 30 to 50. That group of early deaths was just 2416 in 2011

The breakdown of causes is as follows: 37% were cancers, 15% accidents, 10% heart attacks, 8% intentional self-harm and 5% stroke.

You may have already guessed that cancer is the largest, and probably the scariest of the causes of death.

I was still surprised to see the extent of its scale compared to heart disease.

Cancer causes nearly four times as many deaths in this age group.

This change is mainly due to the reduction in deaths from heart disease, as opposed to a big increase in cancer. Of course, these are the unlucky folk, more people survive cancer these days than ever before. More than ever, living benefits should play a part in planning, and cancer definitions should be considered carefully.

But heart disease (of all types) is not even the second largest cause ā€“ in this age group it is the third.

It remains significant enough for us to still pay close attention to the definitions in trauma and add income protection where the client can afford the cover.

But accidents are such a significant cause that it would seem worthwhile pondering what this means for product selection, and perhaps other forms of risk management as well.

Since almost every new policy is for less life insurance than a person would like, then adding very cheap accidental death benefits might be a useful way to increase cover levels on a budget for some clients.

Another thought is to offer some non-insurance risk management advice.

Take care of yourself. You might think it bold to advise your clients on their lifestyles, and therefore choose not to cover the main contributory risk factors to cancer and heart disease, but many advisers disagree and are prepared to mention these at the appropriate time.

Are they overstepping the mark? Or just being good risk managers? The principles of good risk management state that you should consider ways to avoid or mitigate risk. Also, the fact is there are many things a client can do to reduce their accident risk, and some steps can be taken in each of the other risk areas as well.

You will have to decide which course to take, whether you focus only on advising on transferring financial risk, or choose a wider risk management role. But there is another very practical reason why you might consider the broader role ā€“ clients are interested in their health and wellbeing and your interest in it may be a great basis for a more lasting relationship.

 

« Getting to know...Fred DoddsIFA working on pro-bono offering »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.55 3.89 3.99
AIA Special - 3.05 3.39 3.69
ANZ 4.44 ▼3.29 ▼3.45 ▼3.85
ANZ Special - ▼2.79 ▼2.95 ▼3.35
ASB Bank 4.45 ▼3.35 ▼3.19 ▼3.85
ASB Bank Special - ▼2.85 ▼2.69 ▼3.35
Bluestone 4.44 4.44 4.29 4.34
BNZ - Classic - ▼2.79 2.99 ▼2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.75 3.99 4.39
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 2.80 3.15 3.19
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union North 6.45 - - -
Credit Union South 5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 ▼2.80 ▼2.89 3.50
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC ▼4.40 ▼2.95 ▼2.95 ▲3.69
Kainga Ora 4.43 3.55 3.85 4.14
Kiwibank 4.40 3.74 4.14 4.40
Kiwibank - Capped - - - -
Kiwibank - Offset 4.40 - - -
Kiwibank Special - ▼2.65 ▼2.79 ▼3.25
Liberty 5.69 - - -
Lender Flt 1yr 2yr 3yr
Napier Building Society - - - -
Nelson Building Society 4.95 3.75 3.99 -
Pepper Essential 5.18 - 4.98 4.98
Resimac 3.49 3.45 3.39 3.69
RESIMAC Special - - - -
SBS Bank 4.54 4.85 5.05 5.49
SBS Bank Special - ▼2.99 ▼3.05 3.69
The Co-operative Bank - Owner Occ 4.40 3.09 3.35 3.69
The Co-operative Bank - Standard 4.40 3.59 3.85 4.19
TSB Bank 5.34 ▼3.59 ▼3.79 ▼4.19
TSB Special 4.54 ▼2.79 ▼2.99 ▼3.39
Lender Flt 1yr 2yr 3yr
Wairarapa Building Society 4.99 3.95 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.79 ▼2.79 3.39
Median 4.55 3.50 3.79 3.69

Last updated: 25 May 2020 5:00am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com