Protect Your Lifestyle
We all know someone who has suffered from a stroke, cancer or a heart attack. Life is not “black and white” when you are dealing with this type of critical illness. Everyone is different in terms of how they want to deal with their changed circumstances but most want to spend time with loved ones.
A lump sum of money gives you the choice as to how you deal with your situation. It can remove financial uncertainty and stress so that you can focus on your recovery. You may choose to pay off debt, take time out to “smell the roses”, seek alternative treatments – the choice is yours.
Trauma cover provides you with a lump sum of cash if you suffer from a pre-determined condition and survive for 14 days
What conditions are covered?
Why do I need trauma insurance?
57% of adults diagnosed with cancer will survive up to 10 years 51 of people a day are diagnosed with cancer here in New Zealand 21 New Zealanders a day have a stroke – 5 of them will be aged under 65 (sourced from Tower trauma document)
How bad does it have to be for me to be paid?
Do you want to read the policy documents and “get your head” around these conditions – that is our role and we are happy to help you.
What about my children – are they covered?
Income protection insurance
How long could your household survive without your income?
Your ability to get up each day and earn a living is your greatest asset. If you could not work for 3 months, 6 months, 12 months, 5 years – what impact would this have on you and your family’s lifestyle today and in the future? All of the people I meet with insure their homes and their motor cars – yet the chance of your home burning to the ground is so very remote. The chance of being disabled due to an illness such as cancer or stroke is so much higher – 1 in 3!
If you are the main breadwinner for your family and you have limited savings, you need to protect your income.
How much of my income can I insure?
- 1. They will pay you a monthly benefit based on 75% of what your income was prior to going on claim ( indemnity). The benefit is paid to you as a gross amount so you need to pay tax on that figure, and the premiums are tax deductible. You will need to prove your income at claim time.
- 2. The monthly benefit is agreed upon at the time you take out the insurance. It is paid as a net amount and the monthly benefit is based on 55% of what your income was at the time you set the policy up. The premiums are not tax deductible.
- 3. A Loss of earnings – the insurance company recognises the loss at claim time. For those clients who have dialled down their ACC benefit with ACC Cover Plus Extra – this type of policy can make a significant difference to their income at claim time.
What is the best option for me?
How long do I have to wait to get paid the benefit?
If I work part time will they pay me any benefit?
What do I have to provide at claim time?
How long will I receive a benefit?
Total and Permanent Disablement
To be told you will never be able to work again would be devastating. It is the worst possible thing to happen to you financially – statistically it is the least likely thing to happen to you.
Given it is not a common type of claim, the premiums are relatively low.
How disabled do I have to be to make a claim?
Unable to ever work again in your own occupation.
Unable to ever work again in any occupation for which you are qualified or experienced.
Unable to carry out 2 of the 5 activities of daily living.
Clearly the first definition provides a greater level of protection. Some trauma policys will also pay out in the event you were totally and permanently disabled.
We can explain the different options and look at how the premiums compare for you.
Mortgage protection insurance
It is a fact of everyday life that for the vast majority of people their mortgage is their biggest debt.
If you were unable to work, who would pay your mortgage? Do you want to risk losing your home if you were unable to work due to ill health or an accident?
Is this a monthly benefit or a lump sum payment?
You may have a life insurance policy that would pay out (a lump sum), sufficient upon your death to clear your mortgage but this policy pays a monthly benefit in the event you are alive but unable to work.
Will the money be paid to me or to my bank?
Ideally you would protect as much of your income as possible and the mortgage may only be a percentage of this. As such you need to consider all of your options to ensure that your protection plan gives you certainty and as many options as possible when life is no longer black and white.