5 Types of Insurance everyone should really consider

Getting the right covers sorted means peace of mind

No one can predict what is going to happen in your life but one thing that is ensured is that the unexpected does occur. When? no one knows and what? only time tells. Having adequate insurance covers in place not only means that stresses can be taken care of it also means that you have your bases fully covered when these life events should occur. Financial experts agree that having the correct cover in place depending on your unique circumstances such as life-stage, children, your age, lifestyle, and employment determines the approach you should have with your insurances. Here we break down some very good insurance covers that might be worth adding to your insurance mix.

Life Insurance

No one likes to talk about this topic when it comes to people passing, however this very important insurance can mean everything for you and your family.

Life insurance provides your family with a lumpsum amount in case you pass away due to any unfortunate event or are diagnosed as terminally ill. So how much life cover is sufficient? Most advisers suggest a cover range of 6 to 10 years income. Whilst deciding on a level of cover you must consider your daily living expenses.

What is great about life cover is that the cover can go towards some major costs in your life. A life Insurance lumpsum can be used to cover your mortgage, personal loan debts, or even funeral costs. Most funerals in New Zealand can range anywhere from $12K to $15K. In such situations where you were to pass away outside of New Zealand, life cover can be used for repatriation costs as well. Life insurance can also cover your current family lifestyle such as your children’s education for example. In cases where you are terminally ill and unlikely to live for more than 12 months, you can also make an early life claim. Got to fulfil your wish list don’t you think and make use of that valuable time with your family.

Health Insurance

This type of protection is also called medical insurance it protects what should be at the top of everyone’s list, your health. Without your health you don’t have much. This type of insurance means that you can get medical treatment when you need it, minimising financial stress.

Health insurance can go towards paying for surgical and non-surgical medical bills such as specialist examination fees, costs of tests such as MRI’s or CAT scans. These expenses can mount up fast. Even though NZ has a public health system that is fantastic in an emergency, you may face a long wait time for non-acute medical conditions, potentially putting you on a long waiting list. In some cases, these delays may result in a worsening of your current condition. If you want to go for private health care you can pay thousands of dollars in medical costs. If you don’t have health insurance in place these expenses can be hard to afford. Another factor to consider is that whilst a significant number of drugs are subsidised by the government, many are not. With health insurance in place, you have peace of mind knowing you’ve got yourself adequately covered.

Disability cover

This type of cover is one type of insurance most people think they will never need, yet a significant amount of people who enter the workforce may in fact eventually need this before reaching retirement age. Total and permanent disability insurance is cover by a lumpsum payment if you were to become totally disabled for any non-specific illness or injury.
So, what does that exactly mean. Essentially it means that you are in effect unlikely to ever return to your job or job type again because of total disablement. As with similar outcomes to cover you can reduce financial stress on your family as the insurance cover payment can be put to uses such as paying off debt, covering medical expenses, maintaining your lifestyle, or getting access to the best available care. Although health insurance can pay for medical costs you are still short of change when it comes to an income paycheck. Also, remember to ensure that you thoroughly check stand down periods. Your adviser can go through the details with you.

Trauma & Critical Illness

This type of insurance usually covers up to 50+ different illnesses and injuries, normally categorised under Cancer, Heart Related conditions., Loss of function, Brain & Nerves and Miscellaneous events.

There are also two types of cover falling under the trauma and critical illness umbrella, they are accelerated (reduces your life cover by the claim payment amount in event of any claim) or Standalone (independent of life cover and does not reduce your life cover in the event of any claim. In any case you will receive the amount you have chosen in cover as a tax-free one-off payment.

Mortgage Protection & repayment cover

Mortgage protection covers you in the event you are unable to work due to health reasons. You can add cover such as redundancy in some cases as well but not all. The cover is aimed at meeting your ongoing mortgage repayments. It is really simple; you choose a wait period and a payment method. It means you have the resources available to successfully keep paying off your home loan. What this means is that your fear of losing your house due to being unable to pay your loan is one less thing to worry about.

Remember, if you are looking for impartial quality advice from a leading team who has been helping customers since 1999 look no further.
Global Finance has qualified and experienced advisers who can analyse your financial situation, come up with a personalised solution for you that meets your needs. The great thing about this approach is you will get assistance at the time of claim, lifelong support, and reassurance that your policies will regularly be reviewed as your circumstances change.

If you would like to discuss any of the covers available above, you can talk to the friendly team today to get all your insurance needs sorted.
09 255 5500

**Underwriting criteria and insurer terms T’s and C’s apply