Are you covered?

Thursday 2 July 2009 FOR IMMEDIATE RELEASE

Are you covered?

Here in New Zealand many of us tend to take a “she’ll be right” approach to personal insurance with around half of us not having health, trauma, income or life insurance cover.

Many see these insurances as an added extra to our lifestyles – an unnecessary expense. Curiously, we don’t tend to take this approach to other areas of our life – most of us wouldn’t dream of going without car insurance (just in case we crashed into a Mercedes or Porsche on the way to work) or house and contents insurance (on the off chance our home burns down or is burgled).

These insurances are expenses we pay ¬– even when the price goes up. But when it comes to personal life insurance – many of us just don’t see the same importance.

Personal life insurance helps protect us from the intangible – unexpected events such as time off work due to illness. Life insurance allows us to put together an inheritance for our loved ones to help ensure they’re not left with a financial burden after we die.

Part of the reason we are woefully uninsured as a nation is the perception that personal life insurances are too costly. Many insurance companies now offer quoting systems on their websites meaning you can compare and contrast a range of different offerings online without having to sign on immediately. Better still, you can contact a financial adviser who will do the leg work for you. They’ll assess your personal situation, look at your debt levels and explore the best insurance solutions for you (e.g. life, health, income protection, trauma, mortgage etc).

There are a range of different packages available – all varying in benefits and costs. It pays to do your homework as not all insurance policies are created equal – and you get what you pay for. What may look like a good deal on face value may not stack up when it comes to claiming on your policy. You may find you face lengthy stand-down periods waiting for a payout, or find you’re not covered in a certain area.

Finally, once you’ve found a policy that best suits your situation, it can pay to stay put. Switching providers and policies might seem like a cost saving (especially in tough financial times such as these), but again, you may face the same issues above. Good quality insurance can be harder and more expensive to get as you age. Plus, once you change providers, the clock may start again – perhaps saying goodbye to reduced stand down periods, premium discounts and the goodwill established with your existing provider.

With the publicity around the flu pandemic making many of us more aware of our own mortality and the economic recession biting there has never been a better time to ensure you are covered with personal life insurance. There are some excellent packages available – get in touch with an adviser and find out which one best suits you.

Mark Ennis is General Manager of Financial Protection at AXA New Zealand.

A disclosure statement is available upon request, and free of charge.

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