Do you have a mortgage? Have you considered what would happen if you lost your job due to ill health, an accident, or if you or your partner passed away? In a worst-case scenario, the last thing you want to worry about is keeping a roof over your head. So, it’s worth considering how you can protect your home against life’s twists and turns. Ease Insurance’s mortgage protection insurance services can help.
Many of our customers often ask us what the difference is between income protection and redundancy insurance, and although they go hand in hand, they are not the same thing.
A question we are often asked by our customers is “Do I really need redundancy cover?” To this question, we ask the customer to consider what would happen if you were to be made redundant in your current position. Regardless of your salary, debts and assets or lifestyle, every person would be affected by a loss of a job. However, this might be in a different way than you think. While many people consider being made redundant meaning a month or two off work while you find another job, this is not the case most of the time. The job market is tough to break and while you may find your dream replacement job pretty quickly, there may be dozens of others who are after that same job. Therefore it is important to apply for redundancy cover today.
Before you run a mortgage protection insurance comparison it’s important you understand what home mortgage protection insurance is all about.
WHAT’S MORTGAGE PROTECTION INSURANCE?
In brief, mortgage protection insurance is a life insurance policy that covers your mortgage. With the right amount of cover in place, it ensures that you and your family will always have a home regardless of what the future brings. If you or your partner become too ill or injured to work, or if you pass away, your family will still have a roof over their head.
The world of Redundancy Protection Insurance can be confusing to navigate. But it’s essential that you do it right – your survival and wellbeing could well depend on it.
That’s what happened to Jeremy Walton. The company he’d been with for nearly a decade restructured three years ago. While they were appreciative of his contribution, they saw no way to bring his role into the new business structure. This was completely out of the blue and hit hard. Thankfully Jeremy had had the foresight to take out a Redundancy Protection Insurance policy a few years before this. He and wife Nicole discussed where to from there and made some minor adjustments to their lifestyle. Their relief was huge knowing their redundancy insurance cover maintained their mortgage repayments. Their bills were also covered for the 6 months that it took Jeremy to find another role that he felt was right for him.
January is one of the happiest times of the year in New Zealand, people are relaxed and letting their hair down, enjoying the summer break. The sun’s out, the water’s great and the barbeques are scrumptious. What could go wrong? After all, you plan, make lists, book holiday homes, and thoroughly look at every detail to create the perfect summer – however, the one thing no one really prioritises while enjoying this period is a thorough review of the life insurance protection and/or income protection insurance policies.
Unfortunately, it’s a fact that over the school holiday period nasty and unpredictable accidents can take place. While you can control how you drive, you can’t control how other people drive, therefore in order to be fully protected it is wise to contact your local insurance broker.
It’s time to realise that the world is changing very rapidly. This means less job security than ever as traditional industries downsize while computers replace jobs, and more tech-savvy younger people enter the workforce. Alongside the changing world, redundancy insurance protection has been gaining traction, because, despite unemployment levels dropping, job seekers aged over 50 are finding it harder and harder to find work after being made redundant. The truth is it now takes longer than a couple of weeks to find another job. With online job listings making each job application accessible to thousands of people, the hiring process can get dragged out to months. This is a scary fact seeing as nearly half of New Zealanders have stated they would be unable to pay their bills one month after losing their job.
The results of a recent survey of 1000 New Zealanders gauge their attitudes toward income insurance are far from stellar.
Intended to check whether any progress had been made on a $650 billion underinsurance problem identified in 2013 by the Financial Services Council, the Trade Me study showed very little change four years on: While 88% had vehicle insurance and 74% had home insurance, only 51% had life insurance and just 41% health insurance.
Living life is a risky business, especially in New Zealand. As any of the life insurance brokers at Ease will tell you, it’s important to prepare as much as possible for whatever life throws at you.
Despite being a developed, Western society with enviable civil defence and dependable infrastructure, Lloyd’s of London found New Zealand to be the second riskiest country in terms of their non-life underinsurance and insurance take-up rates.
It begs the question: how we can be “at risk” of disaster as a country known for overcrowding, vulnerable infrastructure and tropical cyclones? Put simply, geographical placement. Our islands straddle the tectonic plate boundary known as the “Ring of Fire”, complete with volcanic eruptions and earthquakes. Furthermore, our latitude is firmly within the “Roaring Forties”, which only intensifies rain, snow, drought and wind. Together, these natural factors pose a potent risk to long-term planning.
More than 1 in 10 of private sector employees under a collective employment agreement do not have any redundancy pay. This number of private sector employees on collective employment agreements (CEAs) walking away with nothing has doubled since 2009 when this was only 5%. According to Victoria University’s Centre for Labour Employment and Work, many people aren’t even covered by CEAs. For those employees under an individual employment agreement, entitlements to redundancy money are rarely present.