Coles Launches Life Insurance

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Coles Supermarkets has announced its entry into the Australian life insurance market.

In a potentially huge development in the changing face of life insurance in this country, the supermarket giant has joined forces with global insurer, MetLife, to release a product range that includes a ‘price beat’ guarantee against other direct insurance products.

In a release launching this initiative, Coles headlined the following elements, revealing that price and affordability will be significant components within the life insurance conversation it will have with its customers:

  • Coles Life Insurance cover will be available for as little as $1.00 per week
  • Research shows consumers overestimate the cost of life insurance by almost double
  • Over 50% of Australians don’t have life insurance because they believe it is too expensive
  • Less than half of Australians own or are aware of owning life insurance

Rob Scott, Coles Finance Director, says offering life insurance was a natural progression for the company. “Coles realises how important your life, your health and your family are and we want to help everyday Australians protect what is dear to them,” he said, adding:

Coles now offers protection, with a price beat guarantee

“We know that changes to life circumstances are a big driver in consumers making the decision to take out life insurance. It’s important for them to know Coles now offers protection, with a price beat guarantee, that is simple,easy to understand and easy to apply for.”

Mr Scott referred to Coles’ existing home and motor vehicle insurance offerings, which he says has helped thousands of families save hundreds of dollars each year, and that Coles life insurance should be no different: “This now means that when flybuys members combine Coles Credit Card and Insurance products – with the addition of Coles Life Insurance – they have the opportunity to save over $900 a year.”

MetLife Australia's Chief Distribution Officer, Mike Goodall
MetLife Australia’s Chief Distribution Officer, Mike Goodall

Coles notes that ABS statistics estimate the level of underinsurance of the lives of employed Australian families to be $800 billion.  Commenting on this number, Mike Goodall, Chief Distribution Officer, MetLife Australia, says while this figure is staggering, there is a clear disconnect between consumers recognising potential financial stress, and then acting to protect against it with life insurance.

“As an industry, something we are working hard to convey to Australians is the fact that life insurance is something that doesn’t have to be complicated and time consuming, however you also don’t want to get it wrong. As the new Coles Life Insurance cover shows, individuals can be covered for as little as $1.00 per week and the application process is so simple, it can take just minutes.”

With a clear emphasis on price, convenience and ancillary/loyalty incentives, Coles advises its life insurance offer includes:

  • Price Beat Guarantee – Coles guarantees to beat any Direct Life Insurer’s price on comparable premiums (the direct insurer’s price must be based on a fully underwritten existing policy/quotation covering the client for comparable insured events and the same cover level)
  • Choice of cover for up to $1 million
  • Funeral advance payment of $10,000
  • Earn Coles flybuys extra points
  • Easy to apply – get a quick quote in 60 seconds
  • Easy application process with no medical or blood tests
  • 20% discount for flybuys members
  • Minimum sum insured ($50k) – this is lower than industry standard
  • Terminal Illness cover
  • Optional children’s cover
  • Choice of stepped and level premium options

Click here to visit the Coles Life Insurance website.



11 COMMENTS

  1. I was in England in 2004 and the Supermarket checkout chick saw I had kids, so along with my weetbix, she asked if I would like some Insurance.
    When I told everyone in Australia, they all laughed. The next stage in the cycle of life Insurance, may be drive through McDonalds, with “”would you like Insurance with that””

    The world is changing and people are now demanding simplicity with their dealings.

    It will be interesting to see how the retail Life Insurers can simplify their processes, as their competitors are already way ahead and taking Billions of premiums because they are making it simple.
    We all know that god help clients at claim time, though that is not the point.

    If you are losing vast amounts of premiums to these competitors, you had better come up with a solution before the damage is severe and cost cutting / staff redundancies becomes the new Business model.

    There is always a solution, though if the old ways don’t seem to be working, it may be a good time to start rethinking the strategy.

  2. Don’t for a minute believe the tripe Coles and other direct insurers put out there that they realise how important your life, your health and your family are and they want to help everyday Australians protect what is dear to them.

    They are after your money!!!!! And when it comes time to claim, that’s when they go through the process of trying not to pay.

    To get insurance that is right for you, a lot of research needs to be done and for that to happen you need to speak to an adviser – they do the underwriting and research up front, not at claim time when you are in a pickle and need the hassle least.

    And before any of you knockers come out of the wood work – let me make this perfectly clear – I HAVE EXPERIENCED THIS FIRST HAND!

    Additionally, how can a checkout person give advice on something so intricate? Coles will be going into the law and accountancy practice soon. And it’s practically a given that the checkout person will be able to diagnose, your Tonsillitis, your diabetes, your Cancer.

    REALLY – are we that stupid???

  3. Buyer beware, talk and advertising can be misleading as geting financial advice from a Financial Planner can save you money instead of buying life insurance with your food shopping or online!!!

    I did a quote on my own life as 47 year old non smoker with Coles for $1 million life insurance only against one the biggest non direct retail life insurance companies in Australia.

    Coles premium with my 20% flybuys membersip discount = $141.28 per month stepped premium
    Other life insurance company with no discounts = $112.83 per month stepped premium

    The level premium to age 60, the other life insurance company = $33.94 per month cheaper than Coles / Metlife product

  4. Call me old school, but a consumer would not know what is going to happen in the next three years and this policy can be cancelled by the provider within the first three years, quite a difference between the old and the “new”. And if simplicity for the consumer is the goal, the value of the solution, is of more importance at claim time, not at inception. That is where the true value lies – not just a cheap (and it’s not that cheap) premium.

  5. That’s not a surprise that it is cheaper and as the other person says wait till the claims occur. Then it is too late. Just look at the duty of disclosure the non-direct companies have companies have. You can bet your life on it at claim time they will be asking for all Medicare records back as far as they can go to see if there is non-disclosure. They will be using every trick in the book to get out of claims. There will be no one that will help them except expensive lawyers. We provide a claim service as part of our overall service.

    We had a recent case where an IP policy was cancelled for non-disclosure. The client went to a Dr (some years before the application) for one issue and at the time said he was stressed with work colleague (forgot to mention it on application). There were no drugs or any counselling as he left the job. He of course totally forgot about the incident when he completed the application (not disclosed). Then had an Income Protection claim for an injured ankle which is obviously not related to a mental health issue. They are now suing him for the claim proceeds. Ironically once we found this out we rang up the underwriters will the same information and they world have accepted him with exclusion. This is how tough they are getting. I know it is a different policy but they will do the same investigations for life cover. Just look at the recent 60 Minutes episode.
    Will they also disclose the commission they receive?
    Good luck I say.

  6. Where is the “In Clients Best Interest” checklist, Statement of Advice, comparisons of other quotes and companies considered, details of commissions and kick-backs with all parties connected.
    We may as well be sex workers in Kings Cross as we are treated in the same way by regulators.

  7. Hey, there has to be somewhere for those that know the price of everything and the cost of nothing to purchase their insurance and better still a place for those that understand the total meaning of life and all knowledge obtained for Wikipedia.

  8. Hmmmmmmmmmm

    12.50 pm – Link to PDS on Coles site not working since 9am

    I’ll bet the enquires are not customers. Every adviser in Australia wants a PDS

    I am in the dark, but I note the guarantee applies to fully underwritten DIRECT policies(only) not retail.

  9. I can’t even imagine the checkout chick going through a fact find and asking the gritty personal questions to get the right type of cover, properly underwritten for the right amount and being paid to the right people. So out of interest I obtained a quote for myself, guess what? – 70% more expensive than what I can get from the 12 companies I compare with, guess who was the most expensive – Metlife!.
    I simply don’t understand all this hype about direct insurance, if someone goes in with their eyes closed or buys online because its “more convenient”, doesn’t ask the right person (an advisor) and believes all the advertising blerb of no medicals, blood tests or underwriting, they are kidding themselves. I’m so glad my clients came to me as I know they are being looked after well. I don’t think this is any real competition, if Coles & Metlife are ripping 70% extra out of a clients premium you could really start the commission driver debate all over again.

  10. What happens at claim time?
    Sorry madam claims forms are in aisle 7 next to the toothpaste, when you complete the form and take it to check-out 5 with your shopper dockets and because you are making a claim we are going to take back your Fly Buy points.
    Clients buy you then your advice.
    Welcome to the new world!

Comments are closed.