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Category Life Insurance

Life cover gets a makeover

19 July 2013 Nedgroup Life
Nomfundo Mcilongo, head of insurance business development at Nedgroup Life

Nomfundo Mcilongo, head of insurance business development at Nedgroup Life

Nedgroup Life is taking a refreshing, holistic approach to its life insurance cover that puts the policyholder in charge of his or her state of wellbeing and health.

Life insurance is a key aspect of financial planning. Every person with dependants needs life cover to provide for these dependants when he or she no longer can.

“Unfortunately the life insurance industry in general makes it impossible for some people to get life cover, especially those who are deemed high risk,” Nomfundo Mcilongo, head of insurance business development at Nedgroup Life, says. “At Nedgroup Life people are at the centre of our business and we believe that each person, regardless of status, deserves an opportunity to enjoy life cover solutions tailor made for his or her individual needs.”

Exciting 360Life enhancements

“June 2013 will see a new set of enhancements to one of our life insurance solutions, 360Life,” continues Mcilongo. ”Whether a client is HIV-positive or deemed a standard life, his or her application will be treated and processed in the same way, and once it has been accepted, there will be no ongoing medical requirements.”

This differentiates Nedgroup Life from others in the industry where underwriting impairments are concerned. Nedgroup no longer declines HIV-positive clients upfront. All applications are fully underwritten and additional requirements are set where necessary.

The decision to accept or decline the application is based on individual assessment, not on the disease.

The approach at Nedgroup Life is that everyone can live long and normal lives by embracing wellness and living well, even those with medical impairments.

“HIV-positive status is not a death sentence, but a long-term chronic condition, and it should be treated as such,” Mcilongo says.

In fact, recent research indicates that the life expectancy of a person newly diagnosed with HIV but with no symptoms, has increased to 24 years, with a potential for longer with proper disease management.

What does this mean for people living with HIV today?

Any person who knows his or her HIV status can apply for life cover with Nedgroup Life. The application will be considered in the same way as for an HIV‑negative individual and will therefore involve the same documentation.

No longer will these applicants be subjected, as is the norm in the industry, to stigmatisation by the product or the company they have chosen to transact with.

This does not constitute a specified HIV benefit. However, Nedgroup Life offers the same death benefit to all. The only difference is that a person’s health status may necessitate certain limits on available benefits. This applies to all impaired lives, be it by HIV, diabetes or hypertension.

Nedgroup Life has also enhanced its disability benefits to include the comprehensive income protection disability benefit. This new benefit combines occupational disability and impairment, and provides complete income protection for the policyholder.

The scheduled professional-cover increase for income protection policies recognises individuals who are working towards a professional qualification. This cover increase applies to their benefit, both pre- and post-claim. Individuals who become disabled will receive cover increases in line with what they would have received had they completed their professional qualification. They can buy cover of up to 100% of their taxable income.

Clients who buy lump-sum disability cover can now choose a whole-life option. At cease age they can extend the term, and the benefit converts to a physical impairment benefit. The premium payable for this benefit will be based on the client’s age at inception, which will result in an automatic reduction in the total premiums payable.

Catering for medical conditions

For clients who have medical conditions other than HIV infection Nedgroup has included an additional benefit for an opportunity to buy life cover. The benefit on offer is the modified death benefit, which pays out on the death of the client. However, the cover amount payable is restricted during the first four years of the benefit. Full cover is payable after four years or, on an unnatural death, for any duration. The idea behind this benefit is to ensure that more individuals have access to life cover.

Should the client become impaired, Nedgroup Life also offers the carer benefit, which ensures that the policyholder has an additional income should he or she become impaired in such a way that requires care to be provided by a caregiver or a family member.

The benefit provides an income for up to two years and the policyholder has an option to choose the level of cover required. This income may be used to pay a caregiver, or to substitute for the income of a family member who is now giving care to the individual. The carer benefit can be taken as a rider benefit to the critical illness benefits or the lump-sum disability benefits.

Underpinning Nedgroup Life’s different insurance solutions is the company’s underwriting philosophy, which takes a holistic view of a person’s life. This approach enables policyholders to increase their life expectancy, improve the quality of their lives, and minimise ill health.

Nedgroup Life encourages policyholders to live life well. As a company we are confident that these enhancements will encourage this lifestyle.

Nedgroup Life’s belief is that wellness is, first and foremost, a choice to assume responsibility for the quality of one's life. It begins with a conscious decision to shape a healthy lifestyle. It is a mindset, a predisposition to adopt a series of key principles in varied life areas that lead to high levels of wellbeing and life satisfaction.

Life insurance is a key aspect of financial planning. Every person with dependants needs life cover to provide for these dependants when he or she no longer can.

“Unfortunately the life insurance industry in general makes it impossible for some people to get life cover, especially those who are deemed high risk,” Nomfundo Mcilongo, head of insurance business development at Nedgroup Life, says. “At Nedgroup Life people are at the centre of our business and we believe that each person, regardless of status, deserves an opportunity to enjoy life cover solutions tailor made for his or her individual needs.”

Exciting 360Life enhancements

“June 2013 will see a new set of enhancements to one of our life insurance solutions, 360Life,” continues Mcilongo. ”Whether a client is HIV-positive or deemed a standard life, his or her application will be treated and processed in the same way, and once it has been accepted, there will be no ongoing medical requirements.”

This differentiates Nedgroup Life from others in the industry where underwriting impairments are concerned. Nedgroup no longer declines HIV-positive clients upfront. All applications are fully underwritten and additional requirements are set where necessary.

The decision to accept or decline the application is based on individual assessment, not on the disease.

The approach at Nedgroup Life is that everyone can live long and normal lives by embracing wellness and living well, even those with medical impairments.

“HIV-positive status is not a death sentence, but a long-term chronic condition, and it should be treated as such,” Mcilongo says.

In fact, recent research indicates that the life expectancy of a person newly diagnosed with HIV but with no symptoms, has increased to 24 years, with a potential for longer with proper disease management.

What does this mean for people living with HIV today?

Any person who knows his or her HIV status can apply for life cover with Nedgroup Life. The application will be considered in the same way as for an HIV‑negative individual and will therefore involve the same documentation.

No longer will these applicants be subjected, as is the norm in the industry, to stigmatisation by the product or the company they have chosen to transact with.

This does not constitute a specified HIV benefit. However, Nedgroup Life offers the same death benefit to all. The only difference is that a person’s health status may necessitate certain limits on available benefits. This applies to all impaired lives, be it by HIV, diabetes or hypertension.

Nedgroup Life has also enhanced its disability benefits to include the comprehensive income protection disability benefit. This new benefit combines occupational disability and impairment, and provides complete income protection for the policyholder.

The scheduled professional-cover increase for income protection policies recognises individuals who are working towards a professional qualification. This cover increase applies to their benefit, both pre- and post-claim. Individuals who become disabled will receive cover increases in line with what they would have received had they completed their professional qualification. They can buy cover of up to 100% of their taxable income.

Clients who buy lump-sum disability cover can now choose a whole-life option. At cease age they can extend the term, and the benefit converts to a physical impairment benefit. The premium payable for this benefit will be based on the client’s age at inception, which will result in an automatic reduction in the total premiums payable.

Catering for medical conditions

For clients who have medical conditions other than HIV infection Nedgroup has included an additional benefit for an opportunity to buy life cover. The benefit on offer is the modified death benefit, which pays out on the death of the client. However, the cover amount payable is restricted during the first four years of the benefit. Full cover is payable after four years or, on an unnatural death, for any duration. The idea behind this benefit is to ensure that more individuals have access to life cover.

Should the client become impaired, Nedgroup Life also offers the carer benefit, which ensures that the policyholder has an additional income should he or she become impaired in such a way that requires care to be provided by a caregiver or a family member.

The benefit provides an income for up to two years and the policyholder has an option to choose the level of cover required. This income may be used to pay a caregiver, or to substitute for the income of a family member who is now giving care to the individual. The carer benefit can be taken as a rider benefit to the critical illness benefits or the lump-sum disability benefits.

Underpinning Nedgroup Life’s different insurance solutions is the company’s underwriting philosophy, which takes a holistic view of a person’s life. This approach enables policyholders to increase their life expectancy, improve the quality of their lives, and minimise ill health.

Nedgroup Life encourages policyholders to live life well. As a company we are confident that these enhancements will encourage this lifestyle.

Nedgroup Life’s belief is that wellness is, first and foremost, a choice to assume responsibility for the quality of one's life. It begins with a conscious decision to shape a healthy lifestyle. It is a mindset, a predisposition to adopt a series of key principles in varied life areas that lead to high levels of wellbeing and life satisfaction.

Commission structure improvements

As Nedgroup Life reconsidered its offer, the company did not forget the people who take its solutions to the consumer: the intermediaries.

Previously, Nedgroup Life’s handling of commissions catered only for the payment of upfront commission, but now the company provides two additional options: 'as and when' commission; and a combination of 'as and when' commission and upfront commission.

Various combinations of 'as and when' commission and upfront commission may be selected, subject to the regulatory limits imposed. This feature adds great flexibility to the financial planner's remuneration. This may result in a reduction in premiums and improve persistence with policyholders.

Most importantly, this gives the benefit of creating a hugely sustainable book of business for the long haul for those who are in the business of giving advice.

Commission structure improvements

As Nedgroup Life reconsidered its offer, the company did not forget the people who take its solutions to the consumer: the intermediaries.

Previously, Nedgroup Life’s handling of commissions catered only for the payment of upfront commission, but now the company provides two additional options: 'as and when' commission; and a combination of 'as and when' commission and upfront commission.

Various combinations of 'as and when' commission and upfront commission may be selected, subject to the regulatory limits imposed. This feature adds great flexibility to the financial planner's remuneration. This may result in a reduction in premiums and improve persistence with policyholders.

Most importantly, this gives the benefit of creating a hugely sustainable book of business for the long haul for those who are in the business of giving advice.

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