We reckon that there are some questions you should ask of any insurance company (including us), so that you can be sure you know exactly what you’re buying.
This list isn’t exhaustive, but it is a good starting point! You’ll find below the top questions that we think you might want to ask about, and what they mean. We’ve also included our answers to the questions – because we believe in being as transparent as we can be about what you are buying from us.
- What am I not covered for?
It’s important to know not only what you are covered for, but also what you aren’t covered for.
At Pinnacle Life it’s slightly different for each type of policy. Click here for a summary by product.
- What are my life insurance cover premiums likely to be in 5 years time?
Many insurance companies (including us) offer first year discounts. And as you get older your premiums typically do increase. So it’s important that you ask what your premiums are likely to be in the future, so that you can be sure you’re getting the best overall deal – not just a cheap price in the first year.
Pinnacle Life’s 5 year life cover premium estimate.
- Why can’t my premiums stay the same?
Some companies do offer what is called “level premiums” which means that for a fixed period you pay the same amount. These typically start higher than other premiums, so ensure you understand the total cost over the fixed period.
Pinnacle Life doesn’t offer ‘level premiums’ as a standard offer, but if you have an existing ‘level premium’ policy or quote from another company, we are happy to look to see if we can match it.
- What percentage of claims gets paid out?
Let’s be honest – the most critical experience for you or your family is not when you buy the policy, but when you have to claim. It’s important to know you’re with a company with a good track record of paying claims.
Pinnacle Life has paid out on around 98.7%* of all life insurance claims and 100% of funeral insurance claims received since 1998. (* as at 1 February 2019)
- Do I get anything back if I cancel my policy?
Most life insurance companies in NZ now only offer policies which have no redemption element. That means, that if you cancel or lapse your policy you do not get anything back – the same as for your typical car, contents and health insurance policies.
At Pinnacle Life our policies don’t have a savings or investment component. So you don’t get anything back if you cancel or lapse your policy.