The Financial Services Council has issued advice on both KiwiSaver/Investments and Life Insurance as Coronavirus (COVID-19) continues to escalate.
Top 5 simple tips for Kiwis concerned about their insurance, KiwiSaver, and other investments at this time
FSC Connect is the Financial Services Council's programme to guide, support and educate the sector and consumers as we navigate through Covid-19. As we are all getting used to life in Alert Level 3, these updates are designed to let you know what has been happening across the sector over the week, and plans for the coming weeks.
KiwiSaver and InvestmentsCoronavirus is now a serious global health issue. It’s too early to say exactly how the impact of the virus will shake out but it will be significant and wide-reaching.
Already we are seeing it hit financial markets both globally and here at home and the experts are warning us to prepare for this volatility to continue for some time.
At a personal level many of us have seen this market volatility firsthand through the dramatic impact on our KiwiSaver balance and other investments.
The current volatility then provides a good lesson for us all and an opportunity to take a valuable temperature check of our KiwiSaver investment. Are the settings right? Is the investment strategy of our fund the right one considering our risk profile and stage in life? For example, a more active fund may be more appropriate for younger KiwiSavers who are taking a longer-term view than someone nearing retirement age.
Talk to your fund or your financial adviser and ask them their views on how your KiwiSaver should be responding to the current market volatility, if you’re in the right fund for the long-term or not, and if you should consider adjusting your investment profile.
Read the full article, which first appeared in the New Zealand Herald on 10 March 2020.
Life InsuranceAs the coronavirus situation continues to escalate the Financial Services Council says there are some important issues for New Zealanders with life and health insurance to be aware of.
“In this time of uncertainty, if you are concerned, the first and most important thing to do is to take a good look at your insurance policies, and if you have any questions speak with your insurer or trusted financial advisor”, Richard Klipin, CEO of the FSC says.
“Our members have appropriate plans in place to support customers at this time.
“If you are thinking about taking out a new life insurance policy or updating current cover, you will be asked a number of key questions about your health. Be upfront with your provider and answer all the questions as diligently as possible, including where you have recently travelled.
“We know that many people are unsure if the virus will impact on their insurance, or if they will be covered for any health-related events. It’s much better to seek clarity on your cover.
“Life and health insurance policies provide cover against a wide range of risks, and every policy is different so speak to your insurer or your adviser if you are thinking about making any changes.
“It is also important to emphasise that the response to coronavirus in New Zealand is a public health one that is led and managed by the Ministry of Health.
“This is a fast evolving but very serious situation and all our members are working to ensure that they can give both new customers and current policy holders the certainty and information they need.
“The FSC is working closely with government, regulators and our own members to ensure the right information is also being proactively communicated to customers. Many providers have already issued advice to their policy holders and will continue to do so over the coming weeks as we find out more.
“We’ll continue to closely monitor Coronavirus and its impacts on the insurance market”, concluded Klipin.
Read the full media release.