What insurance may you need?

Thinking about protecting your financial future, but don’t know where to start?

With so many providers and solutions available, choosing the right insurance and the right amount for your needs can seem like a daunting task. So, here are some pointers to get you started on the right foot.

Do you have people depending on you financially?

If you have children, a partner, or ageing parents who depend on your income, what would happen if you suddenly lost the ability to earn a living, or worse?

Insurance can help you protect your family’s financial future from the ‘what-ifs’ that life may throw at you.

·        Life insurance could take care of your loved ones financially if you’re no longer around.

·        With Income Protection, you could still receive up to 75 per cent of your gross income if you were unable to work for an extended period of time.

·        As for Trauma Insurance (or Critical Illness Cover), it’s designed to provide you with a lump-sum payout if you suffer one of over 40 serious medical conditions stated in the policy – including cancer, heart attack or stroke. And, you can use the lump sum as you wish: many people use it to put work on hold (replace their income) and afford some quality time with the family. 

Of course, scenarios like these are anything but a breeze to think about: we get it. But by taking action now, you can secure peace of mind for the future.

Do you have a mortgage or other significant debt?

Own a home with a mortgage or maybe have other personal debt to pay off? Who would take care of it if something happened to you?

Insurance can help you keep the roof over your family’s head and ensure that they’re not left with a financial burden.

Once again, there are different types of insurance to consider, some of which may meet your needs better than others. By providing a lump-sum payment, Life Insurance and Trauma Insurance can give your family flexibility with how they use the money – be it to pay off the mortgage, cover everyday costs, or anything in between and more.

As for Income Protection or Mortgage Protection, they pay a monthly benefit and can help your family maintain their lifestyle for a determined period (or until you return to work), giving you time to bounce back.

Insurance is all about creating resilience and financially protecting the lifestyle you’ve worked hard to build.

What would happen if you fell ill?

No one likes to think about the prospect of falling ill. But unfortunately, medical events can have an impact on your finances, as well as your quality of life.

Insurance can help you accelerate your recovery in a cost-effective way, access premium treatments and diagnostics, and minimise the financial impact of a serious illness.

Health insurance can provide you faster access to private healthcare services, and depending on your policy, you may have some cover for non-Pharmac funded treatments (like certain life-extending cancer medications). It’s all about having more options when you’re feeling unwell – be that specialist consultations, surgery cover or everyday medical costs.

And as we said before, Trauma Insurance is designed to step in upon diagnosis of certain serious medical conditions (the list varies depending on the policy and insurer). And you can use the payout to assist in your own choice of treatment and recovery.

Need expert advice?

On the surface, most personal insurance seems pretty straightforward. But if you look ‘under the hood’, you’ll see that there are many types of cover to choose from, each with its own benefits and conditions.

Before you feel overwhelmed, or simply opt for the first policy that you come across, know this: you don’t have to go it alone. In fact, there are thousands of experienced insurance advisers in New Zealand whose job is to help people like you protect their future. Knowing the market inside and out, they take the time to understand your needs and recommend solutions to meet them.

Click here to find a financial adviser specialised in Personal Risk, and protect your future today.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.