Gisborne man Teira Pokai has had Life Insurance for 15 years – over that period he has had a 670% increase in premiums going from $22.70 a month to $175.06.
Of course he has. He has also had an increase in sum insured, which has grown by about 40%. So his rate increase has been a lot less. But still, this is a simple fact of a rate-for-age product compared to a situation where most consumer goods get cheaper or better value over time. This is the bitter consumer harvest of resentment that is being reaped now as a result of two or three decades of selling rate-for-age product. The consumerist argument was ‘buy term and invest the rest’ the result of the actual behavioural experiment has been… they only managed the first part.
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