Life insurance – boring!

Life insurance.

Two words that are guaranteed to put you to sleep. It is a product that no-one wants, but most people need. I have a different view. If you are educated about what you are paying for and given clear, professional, unbiased advice, then surely life insurance just becomes another part of your financial plan, albeit one that you never want to use. We insure our houses, but I guarantee you that no-one wants their house to burn down.Read More

Income Protection: Bitter pill?

I don’t normally write about insurance, as I am not an expert.Coins gold

BUT, what I do know is that a person’s ability to earn a dollar is their biggest asset.

You are never too young to think about it either, I met a man whose girlfriend is in her 20’s facing cancer, the kind that has ability to create a huge loss.

You are can be too old, but not until you reach retirement, or a at point where you can support yourself even if you couldn’t work again.

Income Protection insurance is one of the ways that you can protect your biggest asset, and there are other ways that complement it, which will be explained by an insurance adviser when asked.

The biggest complaint I hear about income protection, and actually personal insurance in general is the cost.  Overseas i.e. not in New Zealand, there is a lot less protection for the individual provided by the Government, the USA is a good example of this, and they take for granted the need for personal insurance.  Here it is a different story, between ACC and WINZ we have a lot more cover than most countries.

If you value your way of life, the amount of disposable income you have, income protection is worth a look, it will be another cost to living, but what is worst, living without your income, or sacrificing a little in the meantime…

Finding a good insurance adviser can be a tough ask,  so here are some questions to ask:

  1. What sort of authority do you have to provide me with insurance?
  2. Can you provide me with options from more than one insurance provider?
  3. Are you going to give me balanced advice with options?
  4. How do you earn money from me and do you get paid year after year even if you don’t contact me for a review?
  5. Can I have your Disclosure Statement?

These are just a start, but a good adviser will let you know the answers to these and other questions when you meet, happily and willingly.  If you think you are not being listened to, try somewhere else. You need to be able to trust them, if you can’t the relationship won’t work.

If you want to check the details of the insurance/financial/investment adviser you can check them out on the Government website: www.fspr.govt.nz or check out the Financial Markets Authority website www.fma.govt.nz.