Aargh! What insurances do I need to have?
And what is the difference??
Personal insurance is essential for protecting individuals and their families from financial difficulties in the event of unforeseen circumstances.
In New Zealand, there are several types of personal insurance that people should consider having.
Life Insurance: Life insurance provides a lump-sum payment to the beneficiaries in the event of the policyholder's death. This payment can help cover living expenses, pay off debts, and provide financial support to loved ones. Life insurance can be levelled for very reasonable costs especially if put in place early (and then they don’t go up in cost)! And a small amount can be levelled up to age 100 which can become the cheapest version of Funeral Insurance!
Trauma Insurance: Trauma insurance provides a lump-sum payment if an individual is diagnosed with a serious illness or injury, such as cancer or a heart attack. This payment can help cover medical expenses and provide financial support during recovery. This insurance can also be levelled to save thousands and thousands of dollars and safeguard families in case of serious illnesses. Sadly this happens to many people and families - those that have Trauma insurance are very grateful that they do!
Mortgage Protection Insurance: This insurance provides a regular monthly income if an individual is unable to work due to illness or injury. It is designed to pay the mortgage or essential living costs. It can be configured so that it does not have any ACC off-sets. This cover requires ‘wait’ periods from 14 days to 180 days or more and benefit periods ranging from just 2 years, through to ‘up to age 65’. Different configurations have different premium implications.
Income Protection Insurance: Income protection insurance provides a regular monthly income if an individual is unable to work due to illness or injury. This insurance can cover living expenses and help maintain a person's standard of living. Income Protection Insurance has ACC offsets so if you are on ACC claim with 80% payments being made then Income protection will only ‘top up’ the 20% shortfall. ‘Wait’ periods and ‘benefit’ times apply the same as mortgage cover.
Disability Insurance: Disability insurance provides a lump-sum payment or a regular income if an individual becomes permanently disabled and unable to work. This insurance can help cover living expenses and provide financial support for ongoing medical treatment.
Health Insurance: Health insurance provides coverage for medical expenses, including hospitalization, surgery, and specialist consultations. In New Zealand, there is a public healthcare system, but private health insurance can provide additional benefits and faster access to medical treatment.
You may feel a bit overwhelmed with this list… but most people don’t take all of these; and there are clever ways to structure covers to meet your own personal budget!
Please get in touch if you would like to have an obligation-free chat about how you can best protect you and your family; while looking at how clever structures can maximum savings now and over time!
Call Mark: 0275310611