Insurance advice
Life doesn't always go according to plan. Are you prepared?
We offer insurance advice that is tailored for individuals, families and businesses.
Mortgage & Income Protection
Life & Trauma
Health Insurance
How can we help?
You've worked hard to build a solid financial footing for you and your family, so you want to be sure that everything is protected. Accidents and disasters can and do happen, and if you aren’t adequately insured, it could leave you in financial ruin. You need insurance to protect your life, your ability to earn income, and to keep a roof over your head.
You can insure almost anything under the sun, but certain things absolutely need to be properly insured. This typically includes your life, your health, your income and your property.
While you want to ensure that you're adequately protected, there are a lot of insurance policies that are unnecessary for most people. Purchasing the wrong insurance, or simply spending too much on insurance can do more harm than good. The question is: which insurance policy will cater for your needs?
Collectively, we have a wealth of knowledge and it is this knowledge and experience we share with you, so you don’t end up paying for a policy you don’t need.
Life Insurance
What is life insurance?
Life insurance provides essential coverage, offering individuals the invaluable assurance that their family members and loved ones will receive financial protection in times of need.
How does life insurance operate?
Upon selecting a life insurance policy, individuals are required to designate a lump sum payment amount. This sum is disbursed to the 'policy owner' in the event of the insured's demise or diagnosis with a terminal illness with a prognosis of less than 12 months to live.
Types of life insurance:
Life insurance options typically encompass two primary categories: stepped cover (also known as rate for age) and level cover. Stepped insurance premiums progressively increase over time, whereas level cover maintains a consistent price over the long term, albeit with higher initial costs.
What influences the cost of life insurance?
Key determinants affecting life insurance premium payments include age, health status, and pre-existing medical conditions. On average, we have observed that most individuals opt for coverage amounts around $1,000,000. Policyholders retain the autonomy to select the frequency of premium payments that best suit their preferences. Comparing life insurance quotes from leading insurers in New Zealand offers valuable insights into the anticipated premium costs.
Scope of life insurance coverage:
Life insurance provides coverage for a wide array of causes of death, encompassing terminal illnesses and accidents. The sole standard exclusion typically pertains to suicide within the initial 13 months following policy issuance.
Trauma Insurance
What is trauma insurance cover?
Trauma cover, also referred to as critical illness cover, offers policyholders a lump sum payment in the event of a diagnosis of a critical illness or injury.
How does trauma insurance operate?
Contemplating the possibility of enduring a critical injury or illness is undoubtedly daunting. Acknowledging the potential ramifications of such an event is crucial. A critical injury or illness possesses the capacity to significantly disrupt one's life. Consider the implications of potential absence from work or the necessity of providing financial support to one's family.
Trauma insurance provides a lump sum payout upon diagnosis of a critical illness or injury. Policyholders have the flexibility to determine the desired payout amount during the application process, which is conveniently facilitated online. Conceptually, trauma insurance functions akin to living insurance, wherein the insured individual receives the predetermined lump sum amount upon diagnosis of specified conditions.
Conditions covered by trauma insurance:
The insurance providers may vary in their coverage offerings. Most trauma policies typically encompass a comprehensive list of approximately 40 specific conditions along with corresponding descriptions. Commonly covered medical conditions include cancer, heart attack, stroke, and terminal illness.
Income protection and Mortgage Protection
Mortgage repayment and income protection insurance serve similar purposes, both being insurance products crafted to provide a stream of ongoing payments in the event of incapacitation that renders an individual unable to work for a period.
Mortgage Protection
Among the insurance offerings available through most providers is mortgage repayment insurance, which enables individuals to safeguard their continuous mortgage repayments. Should illness or injury prevent one from working, the insurer disburses regular claim payments to ensure mortgage obligations are met. Mortgage repayment insurance holds significant importance as it secures homeownership even in instances where health challenges or accidents impede one's ability to work.
Income protection
How does it work?
When applying for income protection cover, think about how much of your income you'd want to cover in the event you're unable to work due to illness or injury. It's worth noting that you can only insure up to 75% of your income. Once you've decided on your chosen percentage to insure, you'll then have to choose a “wait period”, and a “payment period".
A wait period is the amount of time you wait from the day you make your claim to when your insurance company starts paying you. This time period could range from one month to
13 weeks, it's up to you. After the wait period is finished, your insurer will make regular payments to you.
Your insurer will pay you for the duration of your payment period, this could be for two years, up until retirement, or when you're able to return to work, it's up to you.
How much will I receive if I need to claim?
You'll receive up to 75% of your "pre-disability income", this is the income you were earning before you became disabled).
Typically, pre-disability income means your income over any consecutive 12 month period in the last three years before disablement.
Your claim payments can't be more than the amount you have insured. Let's say your income is $50,000 right now. You can insure up to 75% of this (which is $3,125 a month). Even if your income at the time you are disabled has increased, say to $75,000, you would still receive only $3,125, as this is what you had insured.
The claim payments that you receive are taxed as income by the IRD (on the flipside, your premiums are tax deductible).
It's important to check your cover amount regularly and increase or decrease it with changes in your income.
What's covered?
Insurers have some exclusions (for example self-inflicted injuries), but aside from these, any health issue that keeps you off work is covered.
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