‘It’s criminal’: Havelock North man’s life insurance policy increases after 32 years

An elderly couple from Havelock North feel “ripped off” after their life insurance premiums nearly double, despite signing a lifetime contract more than 30 years ago.

Hilton and Trish Kyle took out a life insurance policy with AMP in November 1988, with a monthly payment of $ 165.90.

But Hilton, 69, said he received a letter stating that if he did not pay a late payment, his policy would be canceled.

The letter also stated that their premiums will increase to $ 296.50 per month.

The Havelock North couple say the letter was “completely unexpected” and that the company has no right to increase its payments.

“They are taking advantage of us. It makes us feel very bad,” he said.

“We have had an automatic payment set up with ANZ for all 32 years.

“We were stunned to be treated like this by AMP. These buggers need to be exposed.”

A spokeswoman for AMP Life apologized for any distress the letter may have caused the Kyles and said an automated mail system caused the problem.

“We have investigated this issue and it appears to be an error stemming from an automated letter,” he said.

“The instructions given in the letter have been revoked and we have also communicated directly with the client.”

AMP Life encourages any policyholder to contact the company if they have questions regarding their policy.

Elliot Cres residents say they have paid more than $ 60,000 in premiums to each other since they first established the policy.

“Now we are elderly. We live on a pension and we depend on it,” Hilton said.
“It feels like they ripped us off as they can’t explain why premiums are increasing.”

Hilton added: “It’s just not right, it’s criminal.”

Smith and Partner, lead attorney Nathan Tetzlaff, said this contractual issue will hinge on the exact wording of your original policy.

“When obtaining insurance, it is important to make sure that the wording of the policy really matches what they tell you about the policy,” he said.

The lawyer said the couple should request full information on the decision and why it is being made.

“Generally, there will be an internal process to request information and dispute the company’s decision. If this does not result in a satisfactory result, a complaint can be made to the Insurance and Financial Services Ombudsman.”

However, Tetzlaff added that there is an implicit “duty of good faith” in most insurance contracts.

The couple, who have until Sept. 5 to pay the outstanding premium charge before the policy cancels, say they would keep AMP if the premiums returned to their original monthly totals.