INSURANCE
​​​The importance of insurance
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We all like to think “It’s not going to happen to me”. But life is unpredictable. Accidents and illnesses happen.
Building an enjoyable, stress-free lifestyle and securing your nest egg can take years. A combination of life, trauma, income/mortgage protection and health insurance could be the best way to protect your financial well-being. Here’s why.
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Many people die before they reach 65. One in six males and one in nine females won’t make it to retirement age.
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At some point, there’s a good chance you’ll be too unwell to work. Two in five people will be unable to work for six months or more through sickness or illness.
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ACC can’t always help. You’re more likely to be disabled by illness (40%) than by accident (34%). Some insurance pays on top of ACC to boost your income in times of need.
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Recovery is faster without financial stress. Insurance eases concerns so you can focus on getting better.
The best time to take out personal insurance is when you’re in good health. Otherwise, you may not be covered for existing conditions. Once you have insurance, hold on to it.
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If you cancel your insurance but decide to reactivate it later, new health issues may not be covered.
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Life cover
A lump sum if you die or have a terminal illness. The one-off payment can be used by your family to repay your mortgage and for other living costs.
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Trauma cover
A lump sum helps if you are too sick or injured to work. Conditions covered include cancer, heart disease, stroke and Alzheimer’s.
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Total and permanent disability cover
Pays a lump sum if you become disabled and are unable to return to work
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Health insurance
Contributes to medical expenses. Private hospital or specialist care means no long waiting times.
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Income protection
If you can’t work, monthly payments can be used to cover food, rent/mortgage, power bills and other living expenses.
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Mortgage protection
If you can’t work due to a serious illness or accident, a regular payments helps clear your mortgage.