Assisted dying poser for insurers

Life insurance companies are wrestling with the question whether they will pay out if assisted dying becomes legal.

AIA, New Zealand’s largest life insurance company, said it could still settle claims if ACT MP David Seymour’s End Of Life Choice Bill became law but others are yet to decide on their stance.

The bill has been ambling its way through the House, with MPs on both sides of the debate arguing the intricacies since its introduction in June 2017. In its current state, the bill would give the terminally ill the option to request assisted dying from their doctors under specific circumstances.

The question of whether euthanasia should be legalised is likely to be the subject of a public referendum during next year’s general election.

There would be implications for life insurers should assisted dying become legal but AIA New Zealand chief product and vitality officer Len Elikhis said it could still pay out life insurance policies.

‘‘We consider and process all life cover claims equally, regardless of cause. Should one of our customers receive a terminal illness diagnosis, advanced payment of life insurance is generally made.

‘‘Terminal illness in this context refers to an illness where a customer is expected to die within 12 months, irrespective of any treatment the customer may receive,’’ Elikhis said.

AA Life said it was unable to comment on any possible policy changes triggered by the euthanasia bill becoming law but it did have provisions in its policies for death by suicide.

‘‘AA Life will, dependent on individual policy wording, pay out claims related to death by suicide for policies which have been in place for a minimum of 13 months,’’ a statement read.

The 13-month provision for payouts for death by suicide was to stop people using insurance companies to leave legacies for their loved ones.

The only proviso in the Criminal Proceeds Act that prevents insurers from making payments is to anyone who helps the policyholder kill themself.

A Cigna spokesperson said the company was unable to comment because of ‘‘the hypothetical nature’’ of the request. Pinnacle Life and Southern Cross also said they were unable to comment.

The Financial Services Council represents 95 per cent of the life insurance market. On its website, the council said that it managed funds of more than $47.5 billion.

Chief executive Richard Klipin said this was a challenging and complex issue.

‘‘The life insurance industry and individual companies will work in a careful, considered way to review policies to ensure that they remain fit for purpose, in line with international best practice, and continue to provide the support and coverage that New Zealanders expect.’’

Seymour said he could not recall any insurance companies raising any objection to paying out policyholders who choose assisted dying – either with him or the select committee.

‘‘A terminally ill person in their last days of life who is eligible to access assisted dying has not made a decision to end their life prematurely, they have simply made a decision about how they will die and should not be penalised for their decision.

‘‘Accessing assisted dying should not affect life insurance policies. If any company wants to be the first to refuse a terminally-ill policyholder their payout because they chose a compassionate death, I’ll be happy to offer them some free PR advice.’’

‘‘Accessing assisted dying should not affect life insurance policies.’’

ACT MP David Seymour