Tax changes to drive insurance premium rises

Bl----dy great- don't forget tax has already been paid on income used to pay the premiums.

I can understand (if not agree) with taxation on the savings component of a Life policy, but what is the justification for a tax on a term life policy?
Assuming of course that the Insurer pays appropriate tax on its overall profit.

It is time the government gave back the right to deduct insurance costs from your tax, those people who choose to protect themselves should get a rebate. It is unfair that there are other rebates such as working for families, child care etc, but not for insurance - it should be for all Life, Health & Disabilty insurance products.

Come on John & Bill, give us a fair go.

This is the dumbest thing John key and Bill English have done so far. For all the good they are trying to do,by supporting another Cullen Tax grab is just crazy and for what.
The insurance industry per annum pays out in excess of $700 million per annum to New Zealanders in claims.If these claims are not paid guess where these people will go for money. You guessed it Social welfare. The Government now taxes the consumer before they can pay their premium, and they currently tax the life offices on profits and now they want more tax from the life offices. As John Key knows all life offices have shareholders so will the companies reduce their margins (and thus dividends) to shareholders or will they pass this cost (being a tax) on to the policy holder who will in turn have to pay a higher premium or reduce the level of cover to keep the same dollar spend ? Gee Let me think about that!
The impact I am picking will be dramatic. For the over 50 year olds their increase will be significant as on a yearly stepped basis their premiums by mortality tables are stepping up by 5-6% per annum anyhow and yes, you guessed it they are the major claims group but a lot will not be able to afford to keep their insurance in place and so the good old taxpayer (via social welfare) will get to foot the bill for the sick, disabled or deceased policy holder and his/her family.
I gave this government credit (and my vote)for smarter management than this.
I have been in the Insurance Industry for 38 years and have seen a lot of dopey things happen over the years within the insurance and savings arena from the National/Muldoon removal of the Labour/Rowling superfund to the Labour/Douglas removal of tax deductability on life insurance premiums to the Labour / Douglas tax change from EET to TTE on the cash accummalation of our investments in managed funds and private superannuation funds, to the introduction of the Labour/Cullen Fund and now this irresponsible labour promoted National supported and introduced tax grab.
Wake up lads if you were looking to do something positive you should be reintroducing deductibility and reducing benefit levels so you get people off welfare dependancy not encouraging it.
Kevin Seque
21 year Life and Qualifying member of the Million Dollar Round Table (representing the top 3% of the worlds Insurance Sales elite) and a Fellow of the Life Brokers Association

National give a tax break here so they take a bit more from there its just moving where the money comes from.And as for taxing people who are planing for there dependants future so they have to go on benifits for suport if the worst happens that just stupid, we should be getting tax breaks if anything.And National Just shoot them-selfs in the foot agian ,well it looks like it will be another long wait before they get into government again after the next election.National in there short time in office they have managed to anger nearly every part of the population.