If you’re in full time or part time employment in New Zealand and have income protection insurance, you may be under the impression that you are covered in the case that you are made redundant. Unfortunately, this is not how it works. When you take out income protection insurance it is to protect yourself, in case of a period of illness or injury where you are not able to work. In this circumstance, it will provide you for up to 75% of your earnings for a certain period whilst you are not working but it won’t protect you if you find yourself unemployed.
What exactly is mortgage protection and why do you need it? Mortgage Protection Insurance is a form of life assurance cover. In the event of your (or your spouse’s) death, this insurance will clear your mortgage. If you are applying for a mortgage with a bank, the bank will insist that you take out mortgage protection insurance. It’s a necessary evil, but often is an unexpected expense when you’re already stretching funds to meet the cost of a new house and the mortgage associated with it.
Nobody likes to think of the worst-case scenario, but what would you do if your income suddenly stopped? While you might be able to live off your savings, or scrape by on your partner’s income for a while, how would you cope in the long term? Sadly, it’s a dilemma that many New Zealand families have to face when an illness or injury takes them out of the workforce for a long or short period, and that’s why, for peace of mind, you need a back-up plan.
Insurance is a fact of most adult lives, just like death and taxes. If you have a home, it’s likely insured. If you have a car, you need car insurance. If you want to buy insurance, it’s easy to pick up the phone and arrange it right away, anywhere in New Zealand, as long as your phone is connected. But with all the insurance broker companies out there, how do you know what policy is right for you?
Getting the wrong insurance at least costs you money and at worst, it can mean that you’re not covered for exactly the situation you were trying to cover. Therefore, it makes sense to get an insurance broker, who deals with it every day, rather than try to decide yourself when it’s something you’re likely to do, last minute when a premium comes up for renewal. Here are 6 reasons why it pays to get an insurance broker.
When you find out you’re going to be a parent for the first time, it’s an exciting period, but it’s also slightly scary. After all, you’ll have a responsibility to your child for the rest of your life, and an obligation to look after them. That’s why many parents worry about what might happen if they were to die, and this is often a catalyst for them looking for life insurance. Whether you’re the main breadwinner, or planning to be a stay at home parent, here’s why you should arrange life insurance before your baby arrives.
How Much Life Insurance Do I Need
I know I need Life Insurance, but how much life insurance do I need ? figuring out how much life insurance I need can be confusing.
There are a few factors to consider when asking how much life insurance do I need.
At the most basic, there is a minimum amount of life insurance I need so I can make sure those left behind avoid a struggle. Beyond that, I really can’t have too much insurance, so I will add more as I can afford it.
Terminal Illness with Partners Life
It pays out if you are diagnosed with a terminal illness. If the Doctors say you won’t live past 12 months your life insurance can be paid out. You can claim for a Terminal Illness on most life insurance policies. But there are occasions when people are diagnosed as terminal but will survive longer than 12 months. What do you do then ? You can’t access your life insurance money, but you want to make the most of the time you have left. Partners Life latest addition to their life insurance policy lets you access 30% of the amount of life insurance if you are terminal, but have longer than 12 months. It’s a fantastic feature allowing you to access part of your life insurance at an early stage and the rest of it when you have less than 12 months to live so you can enjoy what’s left of your life.
What is mortgage protection insurance
Mortgage protection insurance is one of the only forms of risk protection insurance that could prevent you and your family from becoming homeless. Today in NZ approximately one third of working kiwis will be struck down with a severe injury or illness before they are 65 years old, and this injury or illness will prevent them from working for at least 6 months. The chances of becoming sick due to diseases such as cancer, stroke and heart attacks are a real possibility. When you are struck down it will be unexpected and usually sudden. The financial consequences that occur while you are unable to work can have a catastrophic effect on the family and their finances.
After sick leave and annual leave have run out, it would take only one month for 55% of Kiwi households to be unable to pay all their expenses and maintain their lifestyle.
Are you one of these households?
A common misconception is that Redundancy Insurance is a very expensive type of insurance. However the price of Redundancy Insurance will vary depending on how much insurance you arrange.
Most insurance companies will only allow you to take out redundancy insurance protection if you also have sickness and accident income protection.
The additional cost of adding redundancy protection isn’t alot, and there are good reasons why you should also combine any life insurance you have or need into the redundancy income protection policy.