Jason Hennessey, Author at insuranceBASE

Here to help in uncertain times

March 20, 2020 by Jason Hennessey

These are most definitely difficult and unique times as the world grapples with the rapidly evolving impact of coronavirus (COVID-19). Our thoughts are with those affected across the world, and of course at home in New Zealand.

Times such as these highlight the importance of supporting each other and caring for our community: from the courageous efforts of the health workers across the world to what we can all do individually to protect ourselves, our loved ones and the wider community. For our part, it reinforces the importance of being there for our clients: to offer guidance, to answer queries, and provide expert advice in these uncertain times.

COVID-19 and your personal insurance cover

Don’t hesitate to contact us
Whenever you have a query about your insurance, no matter how big or small that might be, please don’t hesitate to contact us. Whether you’d like to check in on the cover you have in place or have queries about a specific policy, we’re here to help.

Making informed decisions
We may see some changes from insurers relating to pandemics for new policies. This means it is even more important that if you are considering new cover, you have all the details and advice to help you thoroughly understand the benefits, exclusions, wait-periods etc. And this is particularly true if you are considering changing cover from an existing policy. Don’t hesitate to get in contact if you would like to review or discuss your options.

Mindful budgeting
In these uncertain times and particularly amid the significant financial concerns created by coronavirus, you may be looking for ways to save money. If your insurance is on your list to review, we urge you to get in contact. Insurance can provide important protection and in uncertain times, this can be all the more important. Having said that, we’re here to help so please do contact us should you experience financial hardship and need to review your options.

Remember, we’re here to help

As we all know, this is the time for our community to support each other. Please keep in mind that we’re here for any queries or concerns you may have about your cover. While our offices are closed, we are working remotely and are here to help with your queries via email, phone and videoconferencing.

Take care and thank you for your time.

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 independent guidance.

Why don’t we like to think about insurance?

March 19, 2020 by Jason Hennessey

New Zealand has relatively low levels of personal insurance cover, by international standards.

Recent research by the Financial Services Council showed that, while 54 per cent of people said it was important to have the right insurance to cover, most didn’t have as much as they thought they probably needed.

A big driver of that is probably our reluctance to think about insurance at all. But if we can identify why that is, we can start to take steps to address our own insurance gaps.

Here are some suggestions…

We don’t like to talk about our finances

The first problem is that many people don’t like to talk about money, full stop. If you’re the type of person who’d rather pretend there’s no such thing, you’re probably even less likely to talk about protecting the money you have.

But even once you get over a general reluctance to think about personal finances, many people still aren’t too keen to take out insurance.

We don’t like to think about the worst-case scenarios

New Zealanders’ reluctance towards insurance could be because it requires us to think about bad things happening. No one likes to imagine getting so sick that they can’t work for a significant period of time, or having a loved one pass away and needing to look after the family.

Insurance requires you not only to think about these possibilities, but to accept that they could happen to you. People tend not to dwell on the bad stuff when talking to friends and acquaintances, so you may not even realise how common these scenarios can be – and how being prepared can be the difference between a quick recovery and a major setback.

We hope it’s a waste of money

This leads into the other main driver getting in the way of openness to insurance – the fact that you kind of hope that you never need it.
In the best-case scenario, you’re signing up to spend money each month on something that you never need to call on to do anything for you. That can be a hard thing to wrap your head around.

But it’s time to flip that on its head

Statistics show that you are 2.6 times more likely to lose income from being off work due to illness than you are to be injured in an accident – and there’s very little in the way of Government support to help you out if you are in that position. It is estimated that 300 New Zealand families each week are put in a position where a long-term illness stops a major earner in the household from working.

Research by the Commission for Financial Capability found that money stress could have a major effect on someone’s life – making them miss out on social activities, not eating right and not accessing adequate health services. So if we talk about insurance premiums as an investment to avoid sleepless nights, it starts to sound a lot more appealing.

Having a sound insurance plan is about providing for your family if you were not around, or minimising the financial impact of a serious illness on your day-to-day life…

Contact us today

If it’s time to think some more about the insurance that you might need, get in touch today. We are here to help you make sure your future is protected.

The rapidly evolving coronavirus (COVID-19)

March 19, 2020 by Jason Hennessey

As the COVID-19 pandemic continues to evolve at a rapid pace, it is important to stay informed of the latest information and updates via official sources. The Government’s resource ‘Unite against COVID-19’ is the official source of information and updates for New Zealanders – you can find this at www.covid19.govt.nz. Below you’ll also find other helpful links and sources to visit.

Keep safe and take care.

What is it and what are the symptoms?

According to Health.govt.nz, COVID-19 is a new illness caused by a type of coronavirus that can affect lungs and airways.

Symptoms include a cough, shortness of breath and a high temperature of at least 38°C. It’s important to note that these symptoms are similar to other common illnesses like cold and flu. Visit www.health.govt.nz for more information.

How long does it take for symptoms to show?

The NZ Ministry of Health says it’s not yet known how long coronavirus symptoms take to show after a person has been infected. However, “current World Health Organisation assessments suggest that it is 2-10 days.”

How does it spread?

COVID-19 spreads from person to person. According to the NZ Ministry of Health, this can happen when someone comes into contact with respiratory droplets from an infected person, or when they touch infected surfaces or objects and then touch their mouth, nose or eyes.

How can you protect yourself and your family?

Visit www.covid19.govt.nz and www.health.govt.nz for information on how to protect yourself and your loved ones.

About treatment and immunisation

The NZ Ministry of Health is constantly updating its health advice page here, including news about treatment and immunisation. At the time of this writing, the page states that researchers are in the early stages of developing a vaccine.

Staying up-to-date

As the situation evolves, it’s important to stay informed and alert. Below are some useful links to bookmark:

www.covid19.govt.nz
World Health Organisation
NZ Ministry of Health
HealthNavigator.org.nz
SafeTravel.govt.nz
US Centers for Disease Control and Prevention (CDC)
Interactive map by Johns Hopkins CSSE, for a real-time picture of the outbreak.

New Zealanders are underinsured: here’s why

February 12, 2020 by Jason Hennessey

When it comes to protecting their lives and livelihood from the unexpected, a high number of New Zealanders are underinsured. It’s the key finding of Gambling on Life, the final chapter of a Financial Services Council’s study focused on Kiwis’ attitude to risk.

“Gambling on Life found that, while many New Zealanders are aware of the importance of types of life insurance, this isn’t reflected in adequate levels of cover for themselves,” said Richard Klipin, CEO of the Financial Services Council. Here are some highlights.

Estimated level of underinsurance – by cover type

The study focused on three main types of Life Insurance available in New Zealand, namely life insurance, income protection and critical illness insurance (also known as trauma insurance). The level of underinsurance has been estimated by adding the proportion of the population who did not have these insurance types to those who have them but say their coverage is inadequate.

Critical illness insurance was the one with the highest estimated level of underinsurance (91 per cent), followed by income protection insurance (89 per cent), and life insurance (71 per cent).

“It is important to remember that not all Kiwis need these types of insurance, for example retirees are less likely to need income protection if they no longer work and have paid down their mortgage,” Klipin explained. “For others, the research highlights some of the reasons for underinsurance, which include affordability, priority, trust, self-insurance and complexity.”

Do you still have the right level of cover?

Consider these questions:

How would you cover your costs if you were to become critically ill and suddenly stopped receiving an income?
When was the last time you reviewed your cover? And has anything important happened in your life since then?
How big is your emergency fund?

As insurance advisers, we know how complex and confusing insurance can be, and we are here to help you understand what’s out there, what you may need, and what options are a good fit for your goals and budget.

So please get in touch: we can help make understanding insurance easier, now and over time.

How to protect yourself as a business owner

February 12, 2020 by Jason Hennessey

Business owners have worries that many other people don’t. Instead of working in return for a reliable salary, they’re relying on finding customers and clients, developing market share and building a strong team to deliver results.

There can be a lot of risk associated with being a business owner, and here are a few ways you can protect yourself.

Emergency fund

When people are relying on you to pay their wages, it’s important that you don’t run out of money.

Aim to build up an emergency fund that’s equal to about three to six months of your business’s earnings that you can call upon to get you out of a tight spot, such as an unexpected repair or a drop in business.

If you have business debt, you may be able to structure this so that your emergency savings offset what’s owed but are still available to you if needed.

Insurance

There a range of insurance products that are designed specifically to offer protection for people in business. Key person insurance is an important one, which acts like income protection to help pay for the cost of replacing an important person if they were out of work for a period of time.

Liability insurance is also important, covering things such as your business negligently causing a loss to someone else or unintentionally breaking the law. Keep in mind that some costs are limited, depending on what law is broken (H&S for example has some limitations).

You might also want business interruption insurance, which takes effect if you aren’t able to open your doors due to something such as equipment damage, vandalism or a natural disaster.

Lastly, you might also want cover for your business’s premises and equipment, depending on how much your business relies on these to make money.

Shareholder agreement

It’s great to have partners in business but, as with any relationship, it’s important to set out clear expectations from the outset.

A shareholder agreement is a bit like a prenuptial agreement in that it sets out how different scenarios will be handled. It can be called upon when one shareholder wants out, or where there’s a dispute. It usually covers things like how the business will be run, the rights and responsibilities of everyone who owns shares and how borrowing will be arranged.

It might also look at the value of shares and how a director or shareholder could be removed – and whether a non-competition clause is needed. Alongside this, you might want to consider shareholder or partnership protection which provides one shareholder with the money to buy out another should something happen to them.

Have contracts and terms in place

Don’t just rely on a handshake or the good relationship you’ve built up with clients and suppliers. Get agreements in writing and make it clear what you’re expecting, and by when. Don’t go too easy on quotes for work for friends and family – they should be supporters of your business, not a drain on your business finances or your expertise.

We can help

Whether you’re just starting out in business or have been in it for a while but are just now thinking about your vulnerabilities, give us a call. We can talk through the various insurance options available to you and what might be the right fit for your firm.