How would you and your family cope if you were no longer able to work? Even if you’ve saved up a healthy emergency fund, chances are the loss of regular income would have a big impact on your standard of living.
As leading insurance brokers in the Auckland, Tauranga and Hamilton regions, we want to shed some light on the benefits of income protection insurance and how it differs from the financial assistance provided by ACC and the sickness benefit.
Most people are well aware of the importance of home and vehicle insurance, but not many people are aware of the personal risk insurance mistakes we can commit. There’s a certain mental blind spot when it comes to taking out personal risk insurance in Nelson. While there are a few underlying factors behind this, the key reason is that people rarely take the time to consider what would happen to them and their families if they were to fall ill or sustain an injury.
While many people will attempt to get a personal risk insurance policy by going directly through insurance companies, it has to be said this is usually not the wisest approach. It is important to know the benefits of using an insurance broker. Making use of professional insurance brokers in Wellington, Christchurch and Dunedin offer a range of benefits that can save you a lot of money in the long run and help keep your stress levels down.
Any of us could lose our jobs at any moment because job security is not guaranteed in today’s economy. However, if you get yourself covered with redundancy income protection, you can at least be guaranteed of some income after your job finishes.
Redundancy Insurance can also go by the names of Salary Insurance or Loss of Job Insurance, but they all mean the same thing. If your employer makes you redundant (and it wasn’t your choice), then this income protection will pay you money every month, starting one month after your redundancy.
According to a recent report by the Financial Services Council, New Zealand is one of the lowest countries to seek insurance. Out of 31 developed countries included in the study, New Zealand has the third lowest rate of insurance.
But would happen if suddenly you were no longer able to meet your financial commitments? This eventuality of not being able to pay your bills or keep up with the mortgage payments might not even be sudden, but instead,a gradual process, as is the case for most people.
Nobody likes to think about being diagnosed with a critical illness like cancer or being struck down by a sudden medical emergency such as a heart attack. However, even if we’re generally healthy and take care of ourselves, the truth is, any of us can be affected by one of the most difficult curve balls that life can throw at us. Nothing can take the stress and pain out of dealing with a major medical condition, but by making sure you have the right trauma and critical illness cover in place, you can at least take the financial burden away from your loved ones and yourself at what would already be an extremely difficult time. Different people require varying levels of cover and each policy is different, but investing in this addition to your health insurance will give you the peace of mind of guaranteeing a lump sum cash payment that you can use to cover many different essentials should you find yourself in this situation.
If you’re in full time or part time employment in New Zealand and have income protection insurance, you may be under the impression that you are covered in the case that you are made redundant. Unfortunately, this is not how it works. When you take out income protection insurance it is to protect yourself, in case of a period of illness or injury where you are not able to work. In this circumstance, it will provide you for up to 75% of your earnings for a certain period whilst you are not working but it won’t protect you if you find yourself unemployed.
What exactly is mortgage protection and why do you need it? Mortgage Protection Insurance is a form of life assurance cover. In the event of your (or your spouse’s) death, this insurance will clear your mortgage. If you are applying for a mortgage with a bank, the bank will insist that you take out mortgage protection insurance. It’s a necessary evil, but often is an unexpected expense when you’re already stretching funds to meet the cost of a new house and the mortgage associated with it.
Nobody likes to think of the worst-case scenario, but what would you do if your income suddenly stopped? While you might be able to live off your savings, or scrape by on your partner’s income for a while, how would you cope in the long term? Sadly, it’s a dilemma that many New Zealand families have to face when an illness or injury takes them out of the workforce for a long or short period, and that’s why, for peace of mind, you need a back-up plan.
Insurance is a fact of most adult lives, just like death and taxes. If you have a home, it’s likely insured. If you have a car, you need car insurance. If you want to buy insurance, it’s easy to pick up the phone and arrange it right away, anywhere in New Zealand, as long as your phone is connected. But with all the insurance broker companies out there, how do you know what policy is right for you?
Getting the wrong insurance at least costs you money and at worst, it can mean that you’re not covered for exactly the situation you were trying to cover. Therefore, it makes sense to get an insurance broker, who deals with it every day, rather than try to decide yourself when it’s something you’re likely to do, last-minute when a premium comes up for renewal. Here are 6 good reasons on why to use an insurance broker:
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