DATE: 12/08/2015
CATEGORY: Awesome news, Blog, Buying a house, Insurance, Life and Income Protection

shout your loved ones peace of mind for less than the price of a cup of coffee

OLYMPUS DIGITAL CAMERAWe were gutted to wake up to the heart wrenching news of All Black legend and family man Jerry Collins’ death back in early June. Jerry died shielding his baby, throwing his arms around her in a desperate bid to protect her from the horror crash that has left her an orphan. It’s been heartening to see people rally round to raise funds for Ayla, who miraculously survived but now faces ongoing health challenges and associated costs ensuring she receives the best care.

The tragedy,and others like it, got us wondering.

Did her parents have life insurance? And if not, how would baby Ayla’s life be different? Having suffered the devastating loss of her parents, what if money was not an issue? What if her future could be assured? They’re questions many people don’t consider – until perhaps it’s too late.

Untimely death or terminal illness can put a huge strain on those you care about, especially when you commit to a mortgage. Buying a home is one of the biggest financial outlays you’ll ever make. Ensuring those who matter most to you will always have a roof over their heads if something unexpected happens is really important.

Having again been through the house buying process ourselves recently and purchasing our slice of paradise, my partner and I were keen to ensure our own peace of mind. ‘What if’, we asked, ‘what if the worst happened and one of us died?’

A horrid thought I know, but we knew burying our heads in the sand wasn’t going to make the issue disappear. What if this was you? How would you feel knowing your grieving partner, and children might be kicked out of their home because they could no longer pay the mortgage?

If you’re single and don’t give a toss about what happens to your debts when you die, then you may not need to worry about life insurance. But if you have a spouse or dependents then why would you want to leave them in the lurch? 

so why is there inertia when it comes to taking out life insurance?

Many people mistakenly believe that life insurance is expensive. But for less than the price of a cup of coffee a day you can shout your loved ones peace of mind. Even so, many people still procrastinate.

The New Zealand Herald ran an independent article at the beginning of this month exploring why more people don’t take steps to protect who’s most important to them.

“People don’t wake up and think, ‘I need to buy cover today,’” says David Boyle, general manager of investor education at the Commission for Financial Capability.

some common errors of judgement

The dilemma of whether to insure or not is often triggered by having children or getting a mortgage. But it’s very easy still for people to make the following errors of judgement:

not taking out insurance or putting it off
Many people who can often find the time to watch their favourite soap or game of footie, make excuses when it comes to spending 30 minutes filling out their insurance application.

And the impact is huge. Not taking it out can leave your family in the proverbial, saddled with debts and unable to sustain the future you’d all planned. Putting it off exposes you to more risk because the longer you leave applying the greater the odds of a medical condition arising. This could mean cover offered with unwelcome exclusions – or a flat decline.

Deferring or procrastinating can be an expensive choice. It’s better to have some cover and not need it than need it and have no cover.

not insuring your spouse
Too often people look at what they’d do if the main income earner died and neglect the impact on the household if their spouse passed on. Be sure to think about all the scenarios that could affect you and your family and make sure you have a ‘what if’ plan in place.

not reviewing your current policy
As your circumstances change your insurance cover needs to evolve. Failing to adapt and forgetting the sum you’re insured for could see you with too little or too much insurance. Reviewing your insurance needs at key moments in your life – getting married or moving in with a partner, buying a house together, having children, leaving work – will ensure you have the right level of protection for the things and people that matter most.

letting price determine protection
Sure, you can save money shopping around but not all insurance providers offer equal benefits when it comes to getting your best-fit cover. You’ll want to factor in the reputation of the insurance provider and the integrity with which they pay out claims, their financial strength, policy quality, customer services and responsiveness. Another factor to consider is who will any claim be paid out to. Your spouse, children or a Trust, in order to pay off your mortgage and settle any debts. Getting your will in order often goes hand-in-hand when sorting out your life insurance.

do you have a ‘what if’ plan in place?

Some people choose to self-insure, and that’s fine for those that can afford it. At least they’ve made a choice. But if you’re still on the fence, don’t be like most Kiwis and adopt a “she’ll be right” attitude when it comes to insurance. Be proactive and protect who’s most important to you sooner rather than later.

Shout your loved ones peace of mind and the first three months premiums are on us! Click here today for an obligation-free quote 

 

 

 

 


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Posted in Awesome news, Blog, Buying a house, Insurance, Life and Income Protection

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