Choosing the right personal insurance can feel overwhelming with so many options available. So let’s break it down.
Life Insurance
What it does: If something happens to you, life insurance provides money to your family. This could be a lump sum or monthly payments. It could be used to clear the mortgage to ensure less financial worry on your family.
Why it matters: Life insurance is a way to help the burden on your loved ones. Affordability is a key element to consider and, once again, keep in mind that premiums are lower when you’re young and healthy. You can even lock in costs by choosing level premiums over age-related ‘stepped’ premiums.
Trauma Cover
What it does: It covers specific illnesses or injuries. Gives you a lump-sum benefit that helps you afford the unexpected costs if you get seriously sick or injured. Some of the most common claims being cancer, heart problems and stroke. Indeed, around 60% of claims for females are for breast cancer.
Why it matters: Helps with medical bills and other unexpected costs not covered by public health services. It could also help keep up with your financial commitments whilst you are sick, or enable your partner to take some time off. Knowing the bills are covered means you can focus on your recovery without added stresses, which can make a big difference.
Income Protection
What it does: If you can’t work due to illness, it provides regular money to replace a significant portion of lost income so you can cover bills and other expenses.
Why it matters: The ability to earn an income is something worth protecting. Most income loss comes from illness, not accidents. If you were to have an accident, ACC would most likely support you while you were unable to work, but it doesn’t cover you if you are unwell.
Medical or Health Insurance
What it does: Offers peace of mind by giving you quicker access to treatments, and covering extra medical costs including doctor visits, hospital stays, prescription medications, preventive care, and major medical procedures when you’re sick or injured.
Why it matters: Protects you from devastating medical bills that could bankrupt you overnight. Especially useful when public services face challenges, which is happening in New Zealand right now. Some providers can fund up to $600,000 per year of non-PHARMAC funded treatment (not funded by public services), which could slow the progression of certain conditions. Health insurance ensures you can get the care you need without choosing between your health and your financial future.
Getting health insurance while you’re young and healthy is smart because you’re less likely to have pre-existing conditions. It also encourages you to get regular health checkups that help with early detection and prevention.
Mortgage Protection
What it does: Ensures your mortgage payments are covered for a specific time if you can’t pay due to illness, job loss, or death.
Why it matters: Keeps your home secure during tough times.
When should you get personal insurance?
There is no right time to get insurance, but getting it earlier in life has a lot of positives. One especially stands out, and that is premiums are still at a low rate.
In your 30s and 40s there is usually a lot going on. Your career is probably taking off or you are taking it in a new direction, you may have tied the knot and started a young family, got on or climbed the property ladder. With growing debt and dependants to provide for, this can be a good time to seek insurance advice.
Could you use an expert Insurance Adviser on your side?
In the world of personal insurance, the choices you make matter. Life is unpredictable, and these policies act as your safety net. It can be helpful to have someone else do all the leg work, read the fine print for you, and point out areas where you might be exposed to too much risk. Our dedicated Financial Advisers are here and ready to guide you. Give us a call.
Our insurance advice is independent and we have access to all the major insurers, so talk to us today for a free no-obligation chat.
