Nature and Scope of our Advice

Essential Insurances Ltd advisers provide advice about:

  • Personal insurance (risk), including health insurance.
  • Business Risk Insurance (Key Person, Shareholder Protection benefits, Business Overheads/Expenses)
  • ACC advice

 

We provide advice in relation to the following insurance products:

  • Life insurance
  • Trauma insurance
  • Total and permanent disability insurance
  • Income protection insurance
  • Mortgage and household expenses cover
  • Health/medical insurance

 

Our financial advisers provide financial advice in relation to these financial advice products. We only provide financial advice about products from certain providers:

  • For life insurance, we work with Five companies – Partners Life, Fidelity, Cigna, Asteron, and AIA.
  • For health insurance, we work with four providers – Partners Life, nib, AIA and Accuro.
  • For Kiwi Saver, we work with three providers – Generate, NZ Funds and Booster

 

In providing you with financial advice, we will only consider existing term life, trauma, income protection and health insurance policies (if any). We will not provide advice on existing whole of life or endowment products, so you will need to consult a specialist if you would like advice on those products.

 

Fees and Expenses

Essential Insurances Ltd may charge a fee for the financial advice provided to a client where a client cancels either a partial or full Risk, Health, or Business insurance policy within two years of inception. Whether a fee will be charged and the way it will be charged will be advised when the advice is provided to the client.

This fee will be payable by the client by the 20th of the month after the policy is cancelled.

 

Our Duties

Essential insurances Ltd, and anyone who gives financial advice on our behalf, have duties under the Financial Markets Conduct Act 2013 relating to the way that we give advice.

 

We are required to:

  • Give priority to your interests by taking all reasonable steps to make sure our advice isn’t materially influenced by our own interests
  • Exercise care, diligence, and skill in providing you with advice.
  • Meet standards of competence, knowledge and skill set by the Code of Professional Conduct for Financial Advice Services (these are designed to make sure that we have the expertise needed to provide you with advice).
  • Meet standards of ethical behaviour, conduct and client care set by the Code of Professional Conduct for Financial Advice Services (these are designed to make sure we treat you as we should and give you suitable advice).

 

This is only a summary of the duties that we have. More information is available by contacting us, or by visiting the Financial Markets Authority website at https://www.fma.govt.nz.

 

Conflicts of Interests and Incentives

Essential Insurances Ltd and our financial advisers receive commissions from the providers on whose products we give financial advice (Insurers and Kiwi Saver providers). If you decide to take out insurance or to take our Kiwi Saver advice, the provider will pay a commission to Essential Insurances Ltd.

Your financial adviser is paid by salary and a possible bonus by Essential Insurances Ltd. The amount of commission is based on the amount of the insurance premium, or the Kiwi Saver balance.

The amount of the commission is based on the amount of premium associated with your cover; specific commissions will be advised to you when advice is provided.

From time to time, product providers may also reward us for the overall business we provide to them. They may give us tickets to sports events, hampers, or other incentives.

To ensure that our financial advisers prioritise our clients’ interests above their own, we follow an advice process that ensures our recommendations are made based on each client’s goals and circumstances.

All our financial advisers undergo annual training about how to manage conflicts of interest. We maintain registers of conflicts of interests, and the gifts and incentives we receive.

Essential Insurances Ltd monitors these registers and provides additional training where necessary. Essential Insurances Ltd performs an annual review of our compliance programme.

 

Reliability History

Essential Insurances Ltd have not been subject to a reliability event. A reliability event is something that might materially influence you in deciding whether to seek advice from Essential Insurances Ltd.

As an example, it would include legal proceedings against Essential Insurances or if Essential Insurances Ltd had been discharged from bankruptcy in the last four years.

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