Personal Insurance
in·sur·ance
in-'shůr-ən(t)s | noun
"A means of guaranteeing protection or safety"
Personal Insurance
in·sur·ance
in-'shůr-ən(t)s | noun
"A means of guaranteeing protection or safety"
Each type of insurance cover is designed to cover a certain event or outcome and every person will have their own needs and concerns.
Discover more about each type of personal insurance below, including some relatable case studies.
Please note: The content provided here is intended solely for informational purposes and should not be considered as advice specific to your unique needs and situation. For personalised guidance tailored to your specific insurance requirements, we invite you to connect with us for a confidential discussion.
Life Insurance
Life cover is one of the most easily understood insurances.
Simply, it's designed to pay a sum to your estate when you pass away. Other events, such as terminal illness, can also trigger a claim.
Life insurance is there to protect your loved ones financially, and can help ease the burden of debts and your lost income.
Harvey witnessed the struggles of Eric's family firsthand after Eric's sudden passing without any Life Insurance.
Eric's wife, Laura, faced the heartbreaking decision of returning to full-time work, leaving less time for their three children, all to avoid selling their beloved family home.
Harvey, shaken by their ordeal, promptly secured a Life Insurance policy. Now, he rests easier knowing that, should anything happen to him, his family won't face financial distress on top of their grief, with their home's mortgage fully settled.
The Taylor Whānau from Wellington
$28.41 per fortnight *
Hemi, a high school teacher, and Ana, a part-time library assistant, were juggling the demands of raising their two young tamariki, Nikau and Mia, with the financial pressures of a mortgage on their family home near the windy Wellington coast.
After a sobering conversation about what would happen if one of them were to unexpectedly pass away, the Taylors sought peace of mind.
They opted for a Life Insurance policy tailored to their family's needs, ensuring that their mortgage would be fully paid off and their children's education funds secure, safeguarding the family's future and maintaining their lifestyle even in the face of tragedy.
Many Life Insurance policies are for your whole life, meaning if you continue to pay your premiums, you will be covered. Some policies are not like this and they expire when you reach a certain age. A lot of people who are on these types of policies do not realise this... Check your policy or ask your adviser.
Many countries and insurance providers around the world offer 'Cash Value Life Insurance', which is a type of investment product. This is where you can cash in your policy later for a return. These are not offered by New Zealand insurance providers.
Income Protection Insurance
Income Protection is a regular monthly payment where an illness or injury stops you working.
Your biggest asset is your ability to earn. Why risk it?
IP can help cover ongoing financial commitments while you're not earning, like mortgage or rent payments and household bills. There are a number of factors and considerations to consider with IP, such as income tax and ACC offsets. This is where your insurance claim can be reduced by any amount you're also claiming from ACC.
It's important to speak to an adviser who can help you navigate all aspects of IP cover.
Niko, a dedicated nurse, knew her 10 days of sick leave wouldn't cover a serious injury.
When an accident at work left her with a severe back injury, unable to work for months, her Income Protection policy became her safety net.
It covered her mortgage payments while she focused on rehabilitation, supported by ACC for medical expenses.
This comprehensive coverage provided her peace of mind during a challenging recovery period.
Jack from Auckland
$32.74 per fortnight *
Jack had successfully carved out a niche for himself in Auckland's competitive freelance graphic design market.
However, the freelance lifestyle meant no sick leave or guaranteed income, posing a significant risk to his financial stability.
Jack's primary concern was the potential loss of income due to illness or injury, which would not only affect his ability to work on projects but also meet his regular financial commitments.
To mitigate this risk, Jack invested in Income Protection Insurance, which offered him a safety net, ensuring he could still pay his bills and maintain his lifestyle, even if he couldn't work for an extended period.
Agreed Value vs. Indemnity Policies: The choice between an agreed value policy, where the benefit amount is agreed upon when the policy is issued, and an indemnity policy, where the benefit is based on your income at the time of the claim, can significantly impact your financial security during a claim. Agreed value policies offer certainty, especially beneficial for those with variable incomes, but they can be more costly. Indemnity policies may be cheaper but carry the risk of insufficient coverage if your income decreases after the policy is taken out. Evaluating your income stability and career trajectory can guide the best choice for your situation.
Many are unaware that some income protection policies may reduce your benefit amount by other sources of income you receive during a claim, such as ACC, sick leave, other insurance policies, or even partner's income, under certain conditions. This could substantially lessen the actual support you receive when unable to work. It's pivotal to understand these clauses, how they might apply to your situation, and to consider policies with fewer offset conditions to ensure you receive the full benefit you rely on.
Permanent Disability Insurance
Disability cover is a lump sum insurance that covers you in case you are Totally and Permanently Disabled.
Becoming Totally and Permanently Disabled is life changing. It's likely you'll never be able to work again to a level you're qualified for, leaving you financially exposed immediately and ongoing.
TPD cover can provide assurance that your debts are cleared, medical costs are taken care of, and that you are able to afford modifications to your home and lifestyle as you adapt to your new normal.
Sarah's life changed in an instant when a late-night accident left her with a spinal injury, making her wheelchair-bound.
Facing a future unable to return to her job as a camera operator, the prospect of financial instability loomed large.
However, their Total and Permanent Disablement cover allowed Sarah and Sam to pay off their mortgage and modify their home for accessibility, ensuring Sam didn't have to shoulder the financial burden alone while caring for Sarah.The Morgans from Hamilton
$20.19 per fortnight *
Lucy and Tane enjoyed an active, outdoor lifestyle with their three children, often going on family hikes and cycling trips around the beautiful Waikato region.
The thought of an accident or illness causing permanent disability was far from their minds until a family friend's life was changed overnight by a serious injury.
This was a wake-up call for the Morgans, highlighting their vulnerability to sudden life changes. Their primary concern was ensuring that, in the face of such adversity, they wouldn't lose their home or compromise their children's futures due to financial strain.
They decided to take out Permanent Disability Insurance, providing them with a lump sum payout in case of permanent disability, ensuring financial stability and the ability to make necessary lifestyle adjustments without the added stress of financial ruin.
TPD insurance offers a lump sum payment, but the triggering conditions can vary widely. Some policies require the inability to work in any occupation for which you're suited by education, training, or experience, while others cover if you can't work in your own occupation.
The broader "any occupation" definition makes it harder to qualify for a payout, so understanding these definitions and how they align with your career and skills is crucial for ensuring the policy meets your needs.
Trauma Insurance
Trauma cover is a lump sum if you suffer a serious illness or injury.
Suffering a trauma event, such as a serious illness injury, can have major impacts on you and your family. Not only are you likely to require medical treatment, but your finances can take a hit along the way.
Trauma cover gives you some breathing room by way of financial support, and allows you to recover at home with the right people, rather than at work.
Tawa, always the picture of health, never thought much about illness until he hit his forties.
Acknowledging that health can be unpredictable, he took out Trauma Insurance. Barely a year later, a routine check-up unveiled prostate cancer.
Without ACC coverage for illness, Tawa's situation could have been dire. However, his Trauma Insurance payout meant he could focus entirely on recovery, surrounded by his whānau, without the added weight of financial worries.
Aroha from Christchurch
$11.44 per fortnight *
Aroha, an enthusiastic netball coach and a dedicated community volunteer, had her life turned upside down when a close friend was diagnosed with a severe illness.
This event made her acutely aware of the sudden and unpredictable nature of life.
Aroha's main concern was not just the potential medical costs, but also the loss of income during recovery, which could put her family's financial stability at risk.
To combat this fear, she secured Trauma Insurance, ensuring that if she ever faced a similar situation, she could focus on recovery without the added stress of financial burdens, maintaining her family's standard of living.
Trauma policies vary in the number and type of conditions they cover. Ensure the policy covers a broad range of conditions, including those with a higher likelihood based on your family medical history. Some insurance providers will offer free Trauma cover for children if a parent is covered. This is important for families!
Some policies offer partial payouts for less severe conditions or early stages of diseases. It's crucial to know what qualifies for a full versus partial payout to avoid surprises during a claim.
Many Trauma Insurance policies require you to survive a specified period (e.g., 14 days) after diagnosis to be eligible for a claim. Understand these clauses to ensure they align with your expectations.
Health Insurance
Health insurance takes care of your medical bills and provides faster access to treatment.
In New Zealand, our public health system and ACC do a fantastic job of taking care of urgent care patients. However, if your condition is non-accidental or non-urgent, you're looking at the possibility of a long wait or a large invoice.
Health insurance removes the worry about medical bills and gives you the freedom to seek the right treatment at a provider of your choice.
Charlie's routine GP visit turned life-altering with a prostate cancer diagnosis.
Thanks to his Health Insurance with comprehensive cancer cover, he underwent timely prostate brachytherapy at a private facility, avoiding the long public health system wait times.
His policy's coverage extended to even the most advanced treatments, safeguarding him against the financial impact of a potentially delayed diagnosis and ensuring his focus remained on recovery.Kiri Te Kanawa (not the opera singer!)
$68.73 per fortnight *
Kiri, a respected university lecturer in environmental science, was all too familiar with the strains on the public healthcare system and the lengthy wait times for non-urgent procedures.
With two active children and a busy career, her primary concern was ensuring timely and high-quality medical care for her family without the stress of navigating public health system delays or facing significant out-of-pocket expenses.
Kiri chose a comprehensive Health Insurance plan that covered everything from GP visits to surgeries, giving her the assurance that her family would receive prompt care, preserving their health and wellbeing without compromising their financial security.
Health Insurance can vary enormously from provider to provider, and can often be tailored with optional add-ons.
Some health insurance policies may not guarantee renewability. Ensuring your policy is guaranteed renewable, meaning the insurer can't change or cancel your coverage as you age or your health changes, and provides long-term security. Additionally, understanding how your premiums might change as you get older can help you plan for your financial future and ensure continuous coverage.
In New Zealand, many cutting-edge medications and treatments, particularly for conditions like cancer, are not funded by Pharmac and can be prohibitively expensive. It's crucial to check whether your health insurance policy provides access to these non-Pharmac drugs and treatments, ensuring you have the widest possible options for care. This coverage can make a significant difference in accessing the best possible treatments without facing financial hardship.
Important
Where you see an asterix * above...
The premiums and prices quoted on this page are unique to the circumstances of each case study in their respective scenarios.
They are intended to give an indication of pricing for a person in similar circumstances, but they are by no means reflective of a quote for any other individual. The prices are correct as of April 2024.
If you are interested in seeking advice around a tailored quote for your own insurance, it is strongly recommended that you speak with a financial adviser.
Life Insurance
Life cover is one of the most easily understood insurances.
Simply, it's designed to pay a sum to your estate when you pass away. Other events, such as terminal illness, can also trigger a claim.
Life insurance is there to protect your loved ones financially, and can help ease the burden of debts and your lost income.
Harvey witnessed the struggles of Eric's family firsthand after Eric's sudden passing without any Life Insurance.
Eric's wife, Laura, faced the heartbreaking decision of returning to full-time work, leaving less time for their three children, all to avoid selling their beloved family home.
Harvey, shaken by their ordeal, promptly secured a Life Insurance policy. Now, he rests easier knowing that, should anything happen to him, his family won't face financial distress on top of their grief, with their home's mortgage fully settled.
The Taylor Whānau from Wellington
$28.41 per fortnight *
Hemi, a high school teacher, and Ana, a part-time library assistant, were juggling the demands of raising their two young tamariki, Nikau and Mia, with the financial pressures of a mortgage on their family home near the windy Wellington coast.
After a sobering conversation about what would happen if one of them were to unexpectedly pass away, the Taylors sought peace of mind.
They opted for a Life Insurance policy tailored to their family's needs, ensuring that their mortgage would be fully paid off and their children's education funds secure, safeguarding the family's future and maintaining their lifestyle even in the face of tragedy.
Many Life Insurance policies are for your whole life, meaning if you continue to pay your premiums, you will be covered. Some policies are not like this and they expire when you reach a certain age. A lot of people who are on these types of policies do not realise this... Check your policy or ask your adviser.
Many countries and insurance providers around the world offer 'Cash Value Life Insurance', which is a type of investment product. This is where you can cash in your policy later for a return. These are not offered by New Zealand insurance providers.
Income Protection Insurance
Income Protection is a regular monthly payment where an illness or injury stops you working.
Your biggest asset is your ability to earn. Why risk it?
IP can help cover ongoing financial commitments while you're not earning, like mortgage or rent payments and household bills. There are a number of factors and considerations to consider with IP, such as income tax and ACC offsets. This is where your insurance claim can be reduced by any amount you're also claiming from ACC.
It's important to speak to an adviser who can help you navigate all aspects of IP cover.
Niko, a dedicated nurse, knew her 10 days of sick leave wouldn't cover a serious injury.
When an accident at work left her with a severe back injury, unable to work for months, her Income Protection policy became her safety net.
It covered her mortgage payments while she focused on rehabilitation, supported by ACC for medical expenses.
This comprehensive coverage provided her peace of mind during a challenging recovery period.
Jack from Auckland
$32.74 per fortnight *
Jack had successfully carved out a niche for himself in Auckland's competitive freelance graphic design market.
However, the freelance lifestyle meant no sick leave or guaranteed income, posing a significant risk to his financial stability.
Jack's primary concern was the potential loss of income due to illness or injury, which would not only affect his ability to work on projects but also meet his regular financial commitments.
To mitigate this risk, Jack invested in Income Protection Insurance, which offered him a safety net, ensuring he could still pay his bills and maintain his lifestyle, even if he couldn't work for an extended period.
Agreed Value vs. Indemnity Policies: The choice between an agreed value policy, where the benefit amount is agreed upon when the policy is issued, and an indemnity policy, where the benefit is based on your income at the time of the claim, can significantly impact your financial security during a claim. Agreed value policies offer certainty, especially beneficial for those with variable incomes, but they can be more costly. Indemnity policies may be cheaper but carry the risk of insufficient coverage if your income decreases after the policy is taken out. Evaluating your income stability and career trajectory can guide the best choice for your situation.
Many are unaware that some income protection policies may reduce your benefit amount by other sources of income you receive during a claim, such as ACC, sick leave, other insurance policies, or even partner's income, under certain conditions. This could substantially lessen the actual support you receive when unable to work. It's pivotal to understand these clauses, how they might apply to your situation, and to consider policies with fewer offset conditions to ensure you receive the full benefit you rely on.
Permanent Disability Insurance
Disability cover is a lump sum insurance that covers you in case you are Totally and Permanently Disabled.
Becoming Totally and Permanently Disabled is life changing. It's likely you'll never be able to work again to a level you're qualified for, leaving you financially exposed immediately and ongoing.
TPD cover can provide assurance that your debts are cleared, medical costs are taken care of, and that you are able to afford modifications to your home and lifestyle as you adapt to your new normal.
Mia's life changed in an instant when a late-night accident left her with a spinal injury, making her wheelchair-bound.
Facing a future unable to return to her job as a camera operator, the prospect of financial instability loomed large.
However, their Total and Permanent Disablement cover allowed Mia and Sam to pay off their mortgage and modify their home for accessibility, ensuring Sam didn't have to shoulder the financial burden alone while caring for Mia.The Morgans from Hamilton
$20.19 per fortnight *
Lucy and Tane enjoyed an active, outdoor lifestyle with their three children, often going on family hikes and cycling trips around the beautiful Waikato region.
The thought of an accident or illness causing permanent disability was far from their minds until a family friend's life was changed overnight by a serious injury.
This was a wake-up call for the Morgans, highlighting their vulnerability to sudden life changes. Their primary concern was ensuring that, in the face of such adversity, they wouldn't lose their home or compromise their children's futures due to financial strain.
They decided to take out Permanent Disability Insurance, providing them with a lump sum payout in case of permanent disability, ensuring financial stability and the ability to make necessary lifestyle adjustments without the added stress of financial ruin.
TPD insurance offers a lump sum payment, but the triggering conditions can vary widely. Some policies require the inability to work in any occupation for which you're suited by education, training, or experience, while others cover if you can't work in your own occupation.
The broader "any occupation" definition makes it harder to qualify for a payout, so understanding these definitions and how they align with your career and skills is crucial for ensuring the policy meets your needs.
Trauma Insurance
Trauma cover is a lump sum if you suffer a serious illness or injury.
Suffering a trauma event, such as a serious illness or injury, can have major impacts on you and your family. Not only are you likely to require medical treatment, but your finances can take a hit along the way.
Trauma cover gives you some breathing room by way of financial support, and allows you to recover at home with the right people, rather than at work.
Tawa, always the picture of health, never thought much about illness until he hit his forties.
Acknowledging that health can be unpredictable, he took out Trauma Insurance. Barely a year later, a routine check-up unveiled prostate cancer.
Without ACC coverage for illness, Tawa's situation could have been dire. However, his Trauma Insurance payout meant he could focus entirely on recovery, surrounded by his whānau, without the added weight of financial worries.
Aroha from Christchurch
$11.44 per fortnight *
Aroha, an enthusiastic netball coach and a dedicated community volunteer, had her life turned upside down when a close friend was diagnosed with a severe illness.
This event made her acutely aware of the sudden and unpredictable nature of life.
Aroha's main concern was not just the potential medical costs, but also the loss of income during recovery, which could put her family's financial stability at risk.
To combat this fear, she secured Trauma Insurance, ensuring that if she ever faced a similar situation, she could focus on recovery without the added stress of financial burdens, maintaining her family's standard of living.
Trauma policies vary in the number and type of conditions they cover. Ensure the policy covers a broad range of conditions, including those with a higher likelihood based on your family medical history. Some insurance providers will offer free Trauma cover for children if a parent is covered. This is important for families!
Some policies offer partial payouts for less severe conditions or early stages of diseases. It's crucial to know what qualifies for a full versus partial payout to avoid surprises during a claim.
Many Trauma Insurance policies require you to survive a specified period (e.g., 14 days) after diagnosis to be eligible for a claim. Understand these clauses to ensure they align with your expectations.
Health Insurance
Health insurance takes care of your medical bills and provides faster access to treatment.
In New Zealand, our public health system and ACC do a fantastic job of taking care of urgent care patients. However, if your condition is non-accidental or non-urgent, you're looking at the possibility of a long wait or a large invoice.
Health insurance removes the worry about medical bills and gives you the freedom to seek the right treatment at a provider of your choice.
Charlie's routine GP visit turned life-altering with a prostate cancer diagnosis.
Thanks to his Health Insurance with comprehensive cancer cover, he underwent timely prostate brachytherapy at a private facility, avoiding the long public health system wait times.
His policy's coverage extended to even the most advanced treatments, safeguarding him against the financial impact of a potentially delayed diagnosis and ensuring his focus remained on recovery.Kiri Te Kanawa (not the opera singer!)
$68.73 per fortnight *
Kiri, a respected university lecturer in environmental science, was all too familiar with the strains on the public healthcare system and the lengthy wait times for non-urgent procedures.
With two active children and a busy career, her primary concern was ensuring timely and high-quality medical care for her family without the stress of navigating public health system delays or facing significant out-of-pocket expenses.
Kiri chose a comprehensive Health Insurance plan that covered everything from GP visits to surgeries, giving her the assurance that her family would receive prompt care, preserving their health and wellbeing without compromising their financial security.
Health Insurance can vary enormously from provider to provider, and can often be tailored with optional add-ons.
Some health insurance policies may not guarantee renewability. Ensuring your policy is guaranteed renewable, meaning the insurer can't change or cancel your coverage as you age or your health changes, and provides long-term security. Additionally, understanding how your premiums might change as you get older can help you plan for your financial future and ensure continuous coverage.
In New Zealand, many cutting-edge medications and treatments, particularly for conditions like cancer, are not funded by Pharmac and can be prohibitively expensive. It's crucial to check whether your health insurance policy provides access to these non-Pharmac drugs and treatments, ensuring you have the widest possible options for care. This coverage can make a significant difference in accessing the best possible treatments without facing financial hardship.
Important
Where you see an asterix * above...
The premiums and prices quoted on this page are unique to the circumstances of each case study in their respective scenarios.
They are intended to give an indication of pricing for a person in similar circumstances, but they are by no means reflective of a quote for any other individual. The prices are correct as of April 2024.
If you are interested in seeking advice around a tailored quote for your own insurance, it is strongly recommended that you speak with a financial adviser.
Handy Tips
When you have multiple benefits on your policy, such as Life + Trauma + Permanent Disability, you have the option to accelerate some of them. When you make a claim on an 'Accelerated Benefit', your Life Insurance is reduced by the amount you have claimed.
The main reason people would choose to accelerated benefits on an insurance policy is that is results in lower premiums. However, after a claim, you would have a reduced sum assured on your Life Insurance policy.
For example, if the life cover sum assured is $500,000 and an accelerated trauma cover claim of $100,000 is made, the remaining life cover would be reduced to $400,000.
The opposite of an Accelerated Benefit is a Standalone Benefit.When you bundle multiple personal risk insurance policies, such as life, trauma, and income protection, with the same provider, you might qualify for Multi-Benefit Discounts.
This bundling can lead to considerable savings on premiums, making it financially easier to secure comprehensive coverage. It's a win-win situation where you achieve a more robust safety net for yourself and your family, while also managing to keep the costs more manageable and sustainable over time.
Lifestyle Discount programs like AIA Vitality reward you for healthy behaviors such as regular exercise, healthy eating, and routine health check-ups, by offering discounts on premiums and other health-related benefits.
These programs are designed to encourage and support a healthier lifestyle, which can lead to reduced health risks and potentially lower insurance costs over time.
Participating in such programs not only benefits your physical and mental well-being but also makes financial sense by potentially reducing your insurance premiums.
A Will is crucial for specifying how you want your assets distributed after your passing, while an Enduring Power of Attorney (EPA) allows you to appoint someone to make decisions on your behalf if you become unable to do so due to incapacity.
These legal documents are vital components of a comprehensive personal risk management plan, ensuring that your financial wishes are respected and that there's someone you trust to make decisions regarding your health and welfare, as well as manage your property and finances, in case you're unable to.
A financial adviser specialises in assessing your individual risk profile and aligning it with the most suitable insurance options available, taking into account your financial goals, family needs, and lifestyle.
By leveraging their expertise, you can navigate the complex insurance landscape with confidence, ensuring that you secure the best possible coverage for your unique circumstances.
An adviser can also assist with periodic reviews of your insurance as your life evolves, ensuring your coverage remains relevant and comprehensive.
Level Cover offers the advantage of fixed premiums throughout the term of your policy, providing stability and predictability in your financial planning, particularly beneficial for long-term budgeting.
In contrast, Rate for Age Cover typically starts with lower premiums that increase as you age, reflecting the higher risk of claiming. This might be more cost-effective in the short term but can become quite expensive as you get older.
Understanding these options allows you to make an informed decision that aligns with your long-term financial strategy and ensures continuous coverage without financial strain.
Policy suspension options provide flexibility during periods of financial hardship, extended leave from work, or significant life changes, allowing you to temporarily pause your coverage and premiums without canceling the policy.
This feature ensures that you can maintain your insurance coverage without financial stress during temporary setbacks and resume your protection and premium payments once your situation improves, safeguarding your long-term security without the need to reapply or risk being uninsured.
Indexation safeguards the real value of your insurance cover by automatically adjusting your insured amount annually to keep pace with inflation, usually based on a fixed percentage or a consumer price index.
This increment in coverage ensures that your policy's value doesn't erode over time, maintaining its ability to meet your financial needs and cover costs that are likely to increase in the future.
While this means your premiums may rise to reflect the increased cover, it's a critical feature for long-term policies, ensuring your insurance remains adequate as costs and living standards rise.
When you have multiple benefits on your policy, such as Life + Trauma + Permanent Disability, you have the option to accelerate some of them. When you make a claim on an 'Accelerated Benefit', your Life Insurance is reduced by the amount you have claimed.
The main reason people would choose to accelerated benefits on an insurance policy is that is results in lower premiums. However, after a claim, you would have a reduced sum assured on your Life Insurance policy.
For example, if the life cover sum assured is $500,000 and an accelerated trauma cover claim of $100,000 is made, the remaining life cover would be reduced to $400,000.
The opposite of an Accelerated Benefit is a Standalone Benefit.When you bundle multiple personal risk insurance policies, such as life, trauma, and income protection, with the same provider, you might qualify for Multi-Benefit Discounts.
This bundling can lead to considerable savings on premiums, making it financially easier to secure comprehensive coverage. It's a win-win situation where you achieve a more robust safety net for yourself and your family, while also managing to keep the costs more manageable and sustainable over time.
Lifestyle Discount programs like AIA Vitality reward you for healthy behaviors such as regular exercise, healthy eating, and routine health check-ups, by offering discounts on premiums and other health-related benefits.
These programs are designed to encourage and support a healthier lifestyle, which can lead to reduced health risks and potentially lower insurance costs over time.
Participating in such programs not only benefits your physical and mental well-being but also makes financial sense by potentially reducing your insurance premiums.
A Will is crucial for specifying how you want your assets distributed after your passing, while an Enduring Power of Attorney (EPA) allows you to appoint someone to make decisions on your behalf if you become unable to do so due to incapacity.
These legal documents are vital components of a comprehensive personal risk management plan, ensuring that your financial wishes are respected and that there's someone you trust to make decisions regarding your health and welfare, as well as manage your property and finances, in case you're unable to.
A financial adviser specialises in assessing your individual risk profile and aligning it with the most suitable insurance options available, taking into account your financial goals, family needs, and lifestyle.
By leveraging their expertise, you can navigate the complex insurance landscape with confidence, ensuring that you secure the best possible coverage for your unique circumstances.
An adviser can also assist with periodic reviews of your insurance as your life evolves, ensuring your coverage remains relevant and comprehensive.
Level Cover offers the advantage of fixed premiums throughout the term of your policy, providing stability and predictability in your financial planning, particularly beneficial for long-term budgeting.
In contrast, Rate for Age Cover typically starts with lower premiums that increase as you age, reflecting the higher risk of claiming. This might be more cost-effective in the short term but can become quite expensive as you get older.
Understanding these options allows you to make an informed decision that aligns with your long-term financial strategy and ensures continuous coverage without financial strain.
Policy suspension options provide flexibility during periods of financial hardship, extended leave from work, or significant life changes, allowing you to temporarily pause your coverage and premiums without canceling the policy.
This feature ensures that you can maintain your insurance coverage without financial stress during temporary setbacks and resume your protection and premium payments once your situation improves, safeguarding your long-term security without the need to reapply or risk being uninsured.
Indexation safeguards the real value of your insurance cover by automatically adjusting your insured amount annually to keep pace with inflation, usually based on a fixed percentage or a consumer price index.
This increment in coverage ensures that your policy's value doesn't erode over time, maintaining its ability to meet your financial needs and cover costs that are likely to increase in the future.
While this means your premiums may rise to reflect the increased cover, it's a critical feature for long-term policies, ensuring your insurance remains adequate as costs and living standards rise.