Thinking about your Insurance may not be high on your list of priorities. But if you’d like to make sure that your cover is still the best fit for you – and will protect you at claim time – it’s important to do a regular check-up.

Here’s when is a good time to schedule a chat with an Insurance adviser like us.

Your relationship changes

What you need as a single person and what you might need as half of a couple can be quite different.

When you’re in a couple, for example, you might have joint debts that you wouldn’t want your partner to be left to cover alone if something were to happen to you. Plus, many couples choose to own each other’s Life Insurance policies to make claim time easier – so it’s a good idea to talk to an adviser about how best to structure your policies.

Similarly, if you have recently come out of a relationship, you may want to ensure that the details on your policies are correct or adjust the level of coverage you’re getting.

Your commitments change

For many people, taking out a mortgage is the catalyst for entering the personal Insurance market.

If you take on new, significant debt, you’ll need to make sure that you have sufficient cover for that. It could be Life Insurance to help those you might leave behind, or Income Protection, Trauma or TPD to ensure that you could cope financially if an accident or illness meant you couldn’t work.

Many people also find that, when they have children, their Insurance needs increase again. Little people usually bring big expenses and amplify the need to provide continuity for the family, no matter what life throws in the way.

You pay off debt

Once you are clear of a significant debt such as a mortgage, your need for some Insurance products may decline.

As Insurance advisers, we can help you work out how to allocate your Insurance budget to maximise the benefit you get from the amount you spend.

Your work-life significantly changes

If you go into self-employment, get a big pay rise or retire, consider re-assessing your cover.

Being in business on your own can mean a whole lot of new Insurance types to consider – like Business Continuity, Key person or Shareholder Cover.

When you start to earn more, you might want to insure a higher income so that your quality of life can be maintained, no matter what happens. We can talk to you about your options – some may not even require additional underwriting.

We’re just a phone call away

It’s worth checking in with us on a regular basis, regardless of what’s going on in your life. We can help you understand developments in the market and whether your policies are still the right option for you and your family.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek advice from a financial adviser.

Throughout our lives, we go through a number of changes. And along the way, our Insurance needs change too. So here’s a guide to the most common Insurance types at every life stage.

20s

You’re young – why would you need insurance? The reality is, there may be quite a few reasons.

This a period of your life where you might be finding your feet and having a bit of fun. Health insurance is worth considering so that, if you were to suffer an ailment or illness that could not be treated quickly through the public system, you could choose to go private and get back to normal as quickly as possible.

Young people often think about getting life insurance when they take on commitments such as a mortgage or children. But even if you don’t have those things yet, there are still reasons to think about life insurance. Even taking out a small amount of life cover can help you circumvent any conditions that may be considered ‘pre-existing conditions’ later on.

Income protection may also be a good option, depending on your circumstances. Once again, it’s about being financially independent no matter what life throws at you.

Whatever insurance type you choose to take out, the benefit of buying any form of personal insurance young is that the premiums are usually comparably lower. And as we said, you can also lock in a policy before you develop conditions that an insurer might exclude if you took it out later.

30s

Commitments often become more pressing during your 30s.
Financial Services Council‘s data showed that 13 per cent of people in their 30s who did not have insurance had thought about taking life insurance in the past two years. About 40 per cent of all respondents aged over 25 had a life policy.

Children are a big motivator for this. Life insurance means you do not have to worry about who would provide for, or look after them, if you were not around to do that.

You might also consider a trauma or total permanent disability policy. These types of cover pay out a set amount if you suffer one of a range of serious, usually life-threatening conditions, or if you have a disability that means you won’t work again. They are a good way to help you reduce the financial stress on your family at a time of emotional strain.

40s

Your 40s are often your peak earning years, but at the same time, you might still have significant debt and children living at home with you.

In this scenario, protecting your ability to earn an income is key. From income protection to life, trauma and health insurance, having the right mix of policies in place can make all the difference. The important thing is to ensure you get the right level of coverage for your budget, so please don’t hesitate to contact us: we can help you achieve value for money without compromising on your needs and goals.

50s

A focus on earning usually continues through your 50s as you start to think about preparing for retirement, so an income protection policy can still be important to keep you on course.

If you paid off your debt, you may start to think about dropping or reducing your life insurance coverage.

Also, if you have health insurance in place and want to make sure it stays affordable in the long run, now may be a good time to think about the excess options to reduce premiums while still maintaining the valuable cover.

60s

At this stage, you may have had a life insurance policy with level premiums for decades. If so, it’s a good idea to keep it going through retirement, as sometimes these policies are used to transfer wealth to the next generation.

If your investments and assets (like your house) are set up to allow you not to work, you shouldn’t need a lot of other financial protection. Consider maintaining your health insurance though, so that if you were to require an operation that had a long public waiting list, you could choose to go through a private provider instead.

Want to talk through your options? We can help you work out what insurance you need, no matter what stage of life you’re at. Get in touch today.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek advice from a financial adviser.

Not all Insurance policies are created equal – even if they have the same name.

Before you change your Insurance policies, consider these four tips, to ensure you are not just saving a few dollars, but you’re also putting yourself in a better position.

Like for like?

Are you replacing your existing policy with a policy that is reasonably similar, and has the same benefits and conditions? If not, the savings you are making may be at the expense of having a comprehensive insurance policy.

Before deciding to replace your Insurance, make sure you do a full comparison of the benefits of each policy – and don’t forget we can help you with it.

Is cost the only consideration?

Perhaps your existing policy has some benefits or advantages that you can’t get with any new policy. Depending on what that benefit is, you may be better off keeping your existing policy, even if it is a bit more expensive than another relatively similar policy.

Have you had any medical events?

If so, so you may find that you can’t now get Insurance cover for a loss resulting from a recurrence of, or caused by, that medical event.

For example, if you had skin cancer removed, that might be excluded from a new policy, while still being covered under your existing policy. Some medical events may be covered still, but you have to pay an additional premium.

You may be better off keeping your existing policy, to have the peace of mind that you are still fully covered.

Do you need to replace it – or just change what you already have?

Are you looking to save money on your premiums? If that’s the only reason for changing, you might be better off looking at ways you can save money on your existing policy, rather than go through the time-consuming paperwork for a new policy.

Changing your existing policy can also be less risky – when applying for a new policy, you may forget to tell the Insurance provider something important.

Plus, keep in mind that your circumstances may have changed: perhaps you have less debt now, or your children have grown up, so you don’t need quite as much cover anymore. Look at reducing the cover you are paying for, and see the premiums reduce – without changing policies.

Changing policies can be a good idea – but you need to do your homework first. Most of all, make sure you never cancel existing policies until you have confirmed replacement cover in place, and you know exactly what you are covered for, and the cost.

An Adviser Disclosure Statement is available free and upon request. 

Like to keep your Insurance premiums as low as possible? While premiums usually increase with age, there are things you can actively do to reduce your premium costs – including choosing the right premium type.

Check out these three steps to be in control of your finances.

Building healthy long-term habits

Positive things like quitting cigarettes or reducing drinking can go a long way in keeping your premiums as low as possible.

Insurance premiums have ‘loadings’ when there are certain lifestyle risk factors present. For example, smokers automatically have a 100% loading, meaning premium costs (for the same level of cover and same age) are double what non-smokers’ are.

Even if you consider yourself more of a ‘social’ smoker, keep in mind that you are still considered a smoker for the purposes of calculating your premium. If you’d like to keep your health and bank account a break, consider kicking the habit completely.

Like smoking, excessive alcohol consumption can also cause some significant health issues, which means a loading may be added. If your level of regular drinking exceeds recommended weekly limits, an additional premium may be charged because of the higher risk of a future claim. By keeping your alcohol consumption within recommended limits, you may be able to reduce the costs of your premium.

Having a rainy-day fund

Have a good savings habit and your own emergency fund in place? Your savings could save you premium costs as well.

Premiums are based on the level of cover you need, and some covers also have an excess or a wait period before the cover starts being paid out. The longer the wait period and the higher the excess you select, the lower the premium. So if your rainy-day fund is enough to cover the excess or your living costs during your wait period, this can be a good way to save money.

Dangerous hobbies

Dangerous hobbies – or at least ones with a higher chance of causing injury or worse – are likely to attract a higher premium, if cover is accepted.

Perhaps you enjoy hang-gliding, scuba diving or the odd spot of rock climbing – and we are certainly not suggesting you should stop. But keep in mind that, if you want cover for potential loss caused by these activities, you will usually need to pay a higher premium for the higher risk. You can lower your premium by either giving up the hazardous activity or having cover for the activity excluded from your policy.

Choosing the right premium type

Usually, Insurance premiums increase with age, and that’s what we call ‘stepped premiums’ or ‘rate-for-age premiums’: the vast majority of Insurance policies in New Zealand fall into this category.

But there’s another premium type, which remains the same throughout the term of your policy: we are talking about ‘level premiums’.

Unlike stepped premiums, which are cheaper initially but get more and more expensive in the future, level premiums are consistent over time so you can avoid the additional cost later in life (when you’re more likely to claim). In other words, you may have the option to fix the cost and secure the long-term affordability of your cover.

Like to learn more about level premiums or want to discuss other ways to keep your premiums manageable? Please get in touch. You have got some control over your Insurance premiums, and by making key changes, you may be able to reduce costs.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek advice from a financial adviser.

Thinking of increasing your Insurance protection, or simply would like to know what’s available and how you can make the most of it?

Depending on the type of cover you have in place, there are certain extras you can consider. Here’s an outline of some handy optional benefits you can add to your policy, and of course, feel free to contact us if you’d like to go more in-depth about your options.

For Life Insurance

Does your policy have a funeral or bereavement benefit? Depending on the ownership structure of your Life Insurance, it may take some time for the funds to reach your family – just when they need it most.

A funeral or bereavement benefit option means that a lump sum can be deducted from your total insured amount and paid to your family a lot quicker. This gives them peace of mind that the costs of your funeral are covered, without having to wait.

For Health Insurance

Most Health Insurance plans offer a range of options; from basic surgical-only cover, to including doctors and dentists cover. Often when you need surgery, there will be tests and imaging that also need to be completed. If you haven’t included these options in your Health Insurance cover, you could find yourself out of pocket. Take some time to consider the various options available, and make sure you have included the ones that will give you the most benefit, at a cost that is reasonable to you.

For Income Protection

When you are off work, and no income is coming in, you are probably more worried about how you will meet your obligations than you are about continuing to save for your retirement. Adding on a retirement protection option to your Income Protection Insurance means that your current regular deductions will still be made, allowing you to focus on getting better rather than worrying about what a period of no income will do to your future.

Another useful option to consider is a waiver of premium benefit. This means that when you are on claim, any due Insurance premiums will be paid for by this additional option – giving you one less budget concern.

For Trauma Insurance

Trauma Insurance pays out a lump sum if you suffer one of the specified injuries or illnesses. Generally, it is designed to help you meet additional or extraordinary costs until you go back to work. However, what if you never go back to work as you have suffered a total and permanent disability (TPD)?

Having TPD cover as an optional extra on your Trauma cover could provide you with an additional lump sum, just when you need it most.

The bottom line? Review your cover regularly and always feel free to talk to us. We can help keep you informed about optional extras that may make your policy do more for you.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek advice from a financial adviser. </em