Southern Cross Life Insurance & Southern Cross Health Insurance Review 2017
Southern Cross Life Insurance Review
Southern Cross Life Insurance, a wholly owned subsidiary of Southern Cross Medical Care Society provides life insurance that is underwritten by Cigna.
Cigna approves and accepts policies; consequently, Cigna will be responsible for all administration and claims relating to the policies.
Interest.co.nz, the online financial and life insurance news website, reported in March 2016 that Southern Cross and Cigna would start the collaboration.
Consequently, Southern Cross Life Insurance started the business.
Southern Cross Health Insurance has more than 800,000 members and more 55% have life insurance with other providers.
Therefore Southern Cross Life Insurance was established and started selling life insurance.
Southern Cross Life Insurance Products on offer
Only one add-on option is available in the policy wording. And this is
- Special Events Increase Benefit
All New Zealand residents aged 18 and over can apply for Southern Cross Life Insurance.
A New Zealand resident is someone living in New Zealand who holds a New Zealand passport, a permanent residency visa or who is an Australian passport holder.
Southern Cross Life Insurance offers up to $1,000,000 cover that includes an Advanced Funeral Benefit.
If the Life Insured is diagnosed with Terminal Illness, the insurer will pay up current Life Cover Amount, to a maximum of $500,000.
You’ll get a 10% discount on your Southern Cross Life Insurance premiums for the duration of the policy while you’re a Southern Cross Health Society member.
If you’re in good health and don’t smoke, you may also be eligible for a further 10% healthy living discount on your Southern Cross Life Insurance premium for the duration of your policy.
Premiums are annually renewable reflecting your current age. This is also known as stepped or increasing premiums.
Premiums that don’t increase with age might be better suitable if you want long-term affordability.
The Small Print
Because Cigna is the underwriter, Cigna also assesses claims.
Only a handful of life insurance companies in New Zealand make publicly available how many claims assessed are paid.
Unfortunately, Cigna and thereby Southern Cross Life Insurance do not make this information available.
Here is a list of exclusions, ie situations where claims won’t be paid:
- If the claim is due to war, invasion, terrorism, hostilities, strike, riot and/or civil commotion, civil war, rebellion, revolution, insurrection, military or usurped power.
- you’ve not been completely truthful when answering questions or if you fail to provide any material information as requested.
- if a claim results from suicide, attempted suicide or intentional self-injury within 13 months of the Cover Start Date or from the date your policy was reinstated after being cancelled.
Probably the most noteworthy detail around Southern Cross Life Insurance is the special Southern Cross discounts.
You will not have a straight conversion pathway if you want life insurance premiums that don’t increase with age, simply because level premiums are not on offer.
Number one reason why people cancel life insurance is due to the increasing costs associated with increasing or stepped premiums. Therefore this cover might not be suitable longterm.
Southern Cross Life Insurance is a basic product and offers only one add-on benefit.
Because of only one add-on option, there is little room for tailoring life insurance solutions around your circumstances and lifestyle.
Southern Cross Medical Care Society (trading as Southern Cross Health Society) and known among New Zealanders as Southern Cross Health Insurance has an A+ (Strong) financial strength rating given by Standard & Poor’s (Australia) Pty Limited
With more than 800,000 health insurance members in New Zealand, Southern Cross Health Insurance the largest provider by far.
Founded in 1961 and started trading as a not-for-profit Friendly Society. For the people, by the people.
New Zealand is a land of co-operatives, joint ventures and communities in collaboration, building on each others strengths to create a better future for us all.
As with so many things, there was a need and a couple entrepreneurs saw this opportunity. And Southern Cross Health Insurance became reality.
Eligible only for New Zealand citizens, New Zealand residents or those otherwise entitled to publicly funded healthcare for all services as determined by the Ministry of Healthfrom time to time
Southern Cross Health Insurance Products on offer
Most noteworthy with Southern Cross Health Insurance is that it is a Not For Profit Friendly Society.
Another one to consider is, 8 out of 10 kiwis with health insurance are with Southern Cross Health Insurance.
For the second year in a row, Southern Cross Healthcare has been rated highest of New Zealand’s health funds, scoring five stars for overall claims according to Canstar.