Don’t forget we’re here – for queries, concerns, plans or just a plain old natter. Working with an adviser isn’t like going to Briscoes and buying a toaster. Odd statement? Perhaps, but the point is that advice isn’t a transaction, it’s a relationship.

The pace of life is astoundingly busy these days, and often it’s only when a big change in life occurs that people think to access the expertise and knowledge of their adviser. And of course, we’re here for those moments. But we also like our clients to remember that we’re here on an ongoing basis, for any kind of query.

Here are a couple of ways you can make the most of your adviser:

Use us as a soundboard

Have a plan or two brewing; considering a change; or just have a query that you need some expert help with? Use us as a soundboard. It’s our job to talk through what you want to achieve, to understand what matters to you and then apply our knowledge of various options and approaches to your personal circumstances. A good conversation with an expert is often the best way to get some clarity and confidence in what to do next.

Use our knowledge

One of the things we enjoy most about working with clients is being able to share our knowledge – even small bits of information can create ‘aha’ moments and help clients better understand their own financial well-being. We’re fans of Kiwis proactively taking an interest in their financial life, researching online (using well-regarded resources of course) and expanding their understanding of how money works. But always remember, you have a specialist on hand who can help you make sense of the plethora of information out there, and most importantly, how it applies to your personal situation.

Check-in regularly

Even small changes can have an impact on your insurance needs. As we said, life’s busy and we certainly don’t want your insurances to feel like a chore; but we definitely recommend you check-in at least once a year. We’ll send you a reminder of course, and we hope you’ll book a meeting so that we can check that your cover is still in line with your life and needs.

In a nutshell, we’re here for any queries you have – big and small. We look forward to the next time we can help you, whether that’s a quick soundboard session on the phone, or a comprehensive conversation over coffee.

If you want to learn more about how we can help you, contact one of our advisers today.

An Adviser Disclosure Statement is available free and upon request.

Life insurance – it’s an important choice. It’s the kind of financial decision that requires a fair bit of thinking about what you need today, and what you might need in the future. And one of the key components in the life insurance decision is short and long-term affordability. Which brings us to our topic: Stepped and Level premiums – what’s right for you?

Stepped vs Level – what’s the difference?

The main difference is pretty straight-forward. Stepped premiums (“rate-for-age”) are age-related and increase as you get older, but are usually cheaper than Level premium insurance in the short-term.

With Level premium insurance, on the other hand, you don’t have to worry about increasing premiums as they remain steady throughout the duration of the contract. Level premiums are usually higher than Stepped premiums at the start of the policy, but lower in comparison in the longer term.

So, in a nutshell, with Stepped premium insurance you tend to save in the short term. With Level premium insurance, you tend to save in the long term.

The handy graph below may help you better visualise the benefits.

The above graph is based on the following details: Female; 36 years old; Non Smoker; Life Cover Sum Insured: $500,000; Terminal Illness: $100,000; Insurance Provider: Booster

The short and long of it

The choice between Stepped and Level premium insurance mainly depends on whether you think the level of cover you need may change, and in what period of time.

If you think you need a higher level of cover in the short to medium term, and a lesser level of cover down the track, then Stepped premium insurance could be an option for you. If, on the other hand, you think the level of cover you need won’t reduce, then locking in your premiums now and saving down the track with Level premium insurance could be more appropriate for your needs.

No crystal ball but good advice available

Of course, none of us know exactly what we’ll need in five or ten years. But sitting down with an adviser and talking through where you are at now, where you think you’ll be in the future and how the options stack up to your needs, is a smart move. Having some comparisons to consider is often the best first step in making an informed choice for your personal circumstances.

And with that in mind, we’re here to help and welcome you to get in touch if you’d like to compare Stepped and Level premiums and how they apply to your life insurance needs.

If you’d like to discuss your life insurance, contact one of our advisers today.

An Adviser Disclosure Statement is available free and upon request.

Article provided by Plus4

Everyone knows that having a will is really important, but it can seem overwhelming and hard to start the process of creating it.

Like having life insurance, health insurance and trauma insurance, the benefits of a will are easy to appreciate. It is all about looking after the people we care about should something happen to us. It also makes things easier by ensuring both your assets and any taonga are allocated as you wish, and without any unnecessary delay.

How to write a will

If you don’t have a will we strongly recommend getting one in place as soon as you can. There are a number of ways you can go about this.

• Visit a lawyer
  Most lawyers create wills for their clients but, as they are charging by the hour, this can be an expensive process.

• Trusts
  Many trusts, like Public Trust, will offer to help you write your will for free. This can be a great service, as they do really know their stuff. But, be aware that they can come with a heavy administration fee – so make sure you know all the details first.

• Do-it-yourself
  There are a number of DIY options, from booklet style kits to online templates. If your will is likely to be straightforward, one easy and legally sound option is the online tool My Bucket List, developed by New Zealand lawyer Mai Chen.

At insuranceBASE, we provide our clients with a template they can use to help them identify what they want their will to include. There are two good reasons to use this template. Firstly, you can go over it in detail in the privacy of your own home and hash out the details. Secondly, once you have done that you can then take it to a lawyer. As you have already done most of the decision making, it will save you time (and therefore money) on legal fees.

What you should consider

Before you write your will, there are a few issues to understand and consider. While it can be unpleasant to deeply consider the consequences of our own passing, it is important to remember that your will is not for you, but for the people you love.

• Beneficiaries. There are two types of beneficiaries – primary and contingent. The primary beneficiary is your first choice to inherit your estate, such as your spouse. The contingent beneficiary is the next option, if the primary beneficiary has died or cannot be located, such as your children or a sibling.

• Bequests. A bequest is a gift given in a will. This could be a sum of money donated to a favourite charity, or to a person who is not a beneficiary of the will. It could also be an item, such as jewellery or heirlooms, you wish to be given to a specific person.

• Guardianship. Deciding who gets your grandmother’s piano is far easier than choosing who will care for your children in your absence. You can appoint someone in your will to take over guardianship, if your children are under 18 years of age. This person is a testamentary guardian. It is important to note their role doesn’t include the day-to-day care of the child, or children, but they can make major decisions about how they are brought up, and by who.

• Financial planning. If you are responsible enough to be making a will, we hope you also have life insurance in place. In setting up your insurance you need to consider various scenarios and where this money would end up. For example, if you have given someone guardianship of your children – how will you fund that?

If you want to discuss your life insurance, or would like a copy of our will template, contact one of our advisers today.

Article provided by Plus4

Helping our clients with life insurance is a key part of what we do here at insuranceBASE. It’s an important topic, so we’ve answered some of the most common questions people ask us.

• Do I need life insurance?

What sets life insurance apart from other insurance policies is that it is generally not for you.

Life insurance is almost always for someone else, so the question is best answered by looking at your circumstances and the people you care about. If there would be a financial shortfall created by your untimely departure, then yes, you definitely need life insurance. On the other hand, if you have a freehold home and no dependents, then your need for cover may be minimal, if at all.

• How much life insurance do I need?

Again, we need to go back to remembering that it isn’t about you. So, it is better to frame this question as how much life insurance do they need. An exercise we take clients through is to think about the value of your income to your family over the next 20 years. That could be the loss to your family if you are not around.

This is a complex question, with so many variables, and answering it is one of the times where the value of using an adviser shows. Having someone who will sit down and get to know you (and get a grasp on your life stage, your budget and your values) makes a world of difference in deciding how much life insurance you should have.

Key factors to consider include covering any debt, replacing ongoing income, covering a mortgage and what kind of lifestyle you want your loved ones to lead. If you have dependants you will also need to think about how to provide for the people that will be providing for your children, and how you will structure a pay-out should both you and your partner be gone.

• Who gets my life insurance?

Most policies are set up to be jointly owned, by both the insured party and the intended recipient. This makes everything smoother at claim time. It also means that it is important to update policies should there be a change in your relationship status.

If the situation arose where both policy owners were deceased, the insurance pay-out would become a part of the estate, or go into a trust if one was set up.

• Is there any way I can access my insurance benefit before I die?

There is a Terminal Illness Advance in most life insurance policies, which means if you have a terminal illness and are likely to die in 12 months you can receive your full insurance pay-out ahead of time.

• So, what happens when a policy holder dies?

One of the huge advantages of having an adviser is that we are always available. You can call us if something happens and we can help you through the process, every step of the way.

Upon receiving notification that a policy holder has died, most insurance providers will immediately release $10,000 to $15,000. On receipt of a death certificate, the remainder of the pay-out is released, which can take a few days.

Check your life insurance policy regularly

It is important to remember that life insurance shouldn’t be static, it should match where you are right now. This means as your family or your assets grow, you may need to increase your sum insured. Then, as your children become independent and the mortgage goes down, so should your sum insured.

This is one of the big differences between an insurance salesperson and an advisor – a salesperson wants to sell you insurance; while an advisor is in it for the long haul. An advisor will make sure you have an appropriate amount of coverage at each stage of your life.

Life insurance could make a big difference to the ones you leave behind

On a final note, we can all agree that no one likes paying premiums, but everyone is grateful for insurance when they need it. We have never heard anyone say they had too much insurance at claim time.

If you want to get life insurance set up, or review your insurance policy to make sure your sum insured isn’t too high or too low, get in touch with one of our advisers.