Personal Insurances
Hearing about accidents, crashes, disasters or friends getting cancer provokes a number of thoughts and emotions. But if it were you – how would you cope emotionally or financially? Life has many uncertainties. Risks are an unavoidable part of human life. Thus a vital part of your financial plan for life must be the proper consideration of all possible sources of financial loss.
Why should I take out personal insurance?
It takes a lot of effort to manage your money and grow your wealth, so it makes sense to put risk prevention strategies in place. We recommend that you always have an option B, just in case something goes wrong over the 30-60 years that you’re accumulating wealth. Insurances are one way to manage financial uncertainty. By offsetting the risk to a third party (in this case an insurer) you will create more certainty.
Insurance allows you to pay a small affordable premium to an insurer on a regular basis in order to receive a lump sum or ongoing payment upon a claim. The types of policies vary for different needs throughout different stages of life and are dependent on your personal circumstances.
Where do you fit along the risk/cost line below?
Do you carry all of the risks or are you offsetting a portion to an insurer?
If you don’t feel completely comfortable with the level of protection you have in place, please get in touch to discuss your needs.
Now that we’ve assessed your attitude to risk, read on below to see the five main types of personal insurance and how they work.
Disability Income Protection
In the event you are permanently or temporarily disabled resulting from either sickness or accident, a percentage of earned income will be received as a monthly payment for the period where you are unable to earn income.
Why you should consider Disability Income Protection?
500,000 people hospitalised annually in NZ.
12% are covered by ACC, 87% are not.
1:9 men & 1:5 women under 65 will be disabled for 12 months or more.
Life Insurance
Provides a lump sum payment if you die or are diagnosed with a terminal illness. Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money (the “benefits”) upon the death of the insured person. The policyholder typically pays a premium. Other expenses (such as funeral expenses) are also sometimes included in the benefits.
Why you should consider Life Insurance?
31,000 deaths annually in NZ.
17% males & 11% females will die under the age of 65.
7% die suddenly.
93% take 3 or more years to die.
1 in 3 deaths is from cancer.
Total Permanent Disablement Insurance
Total and permanent disability insurance allows you to maintain a quality of life for yourself and your family if you are permanently disabled. When you think about the changes which would occur in every aspect of your everyday life if you suffered a permanent disability, being able to maintain some normalcy, and not having to worry about finances can make TPD insurance an investment worth considering.
Why you should consider Total Permanent Disablement cover?
TPD is essentially a replacement of income – but not just for you. If you become permanently disabled, this could replace a spouse or family members income to look after you.
Trauma Insurance
Trauma cover insurance can pay a lump sum if you are diagnosed with a condition, for example, some forms of cancer or if you have a stroke or a heart attack or you suffer major head injuries.
Why you should consider Trauma cover?
50% of males and females will experience a trauma under 65.
1:9 breast cancer.
1:9 prostate cancer.
250 New Zealanders diagnosed with cancer each day.
24 strokes occur each day in NZ
Medical Insurance
With health insurance, you can access treatment in a private hospital, and your insurer will pay (they can either reimburse you or pay the health provider directly). This means that you won′t need to join a public hospital waiting list, and it also usually means that you have a wider range of treatment options, hospitals, and medical specialists available to you.
Why you should consider Medical Insurance?
300,000 people are currently waiting for access to public hospitals.
The average wait time for the public is 144 days, private is 45 days.
Would you like to discuss your options further?
Insurance comes in numerous forms to cover many potential outcomes in life. If you would like to review your insurances please contact us to talk to a qualified financial adviser.
FoxPlan recommends that you seek a professional adviser to guide you through your needs and the levels of cover appropriate.