TOWER premiums to rise 7%
TOWER Health & Life says that it is going to increase its life insurance premiums by 7% due to impending tax changes.
Friday, May 21st 2010, 11:11AM 
4 Comments
The increase is to its new and existing Life Cover policies in the TOWER Life 360 and TOWER Business 360 product ranges.
This increase only relates to life cover and there will be no general premium increase for any other individual risk products including trauma cover, permanent disability cover or income protection cover.
TOWER Health & Life chief executive Steve Boomert says there will be no changes to commission payments made to advisers.
He says that the company has made sustainable management expense savings, and kept lapse rates below market average and this has allowed for more flexibility to contain the required level of premium increases at this time.
"We are pleased to be able to maintain pricing for our customers that we consider is competitive in the current market, while offering them a quality product."
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Comments from our readers
http://www.goodreturns.co.nz/article/976496742/sovereign-reducing-adviser-commissions.html
"Mr Flannagan (Tower CEO) also said life insurance prices were likely to go up by close to 30% over the next 5 years because of changes to the way the industry is taxed. The changes are due to come in next year but Mr. Flannagan said a five year "grandfathering" period meant it was likely to be spread over that time". Hmmm...spread over that time eh! 7% seems good now, but just wait...
What will Tower do with all that extra money they're creaming off their existing customers? If it's not going to the IRD where is it going? I thought my policy was 'grandfathered'.
I for one would like to hear a response from Tower about this.
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