What Insurance Product Is Best For You?
We all have different needs when it comes to insurance and savings. For those who are looking to open their first insurance policy, even knowing what insurance products are available can be a learning experience in itself. Unless you are independently wealthy, everyone should consider insurance as a way of protecting themselves and supporting those around them if in the unlikely event something should happen.
Personal Insurance
Personal Insurance means different things to different people. For young families it can be a means to replace lost income in the event of the premature death or disability of one of the parents but for an elderly individual it may mean making sure that hospital bills can be covered.
To find out more information, click on one of the product links from the left hand menu.
There are a number of different types of personal insurance. The most common are:
This is insurance in its simplest form - it pays out in the event of death. Premiums usually increase annually, although level premium policies (with premiums that do not increase over the term of the policy) are also available.
This type of insurance creates a flexible plan that will pay you an income should you become sick or disabled. There is a range of features and additional options to allow you to customise the product to suit your individual requirements.
This policy pays a predetermined lump sum on diagnosis of certain serious medical conditions or events. The benefit is normally available either in conjunction with life insurance cover, or on its own.
This policy provides a specified lump sum if you become totally or permanently incapacitated - and therefore unable to earn your living - through injury or illness.
Life Care Benefit is not something that can be purchased by itself and is not available through every insurance firm. In order to get Life Care you must purchase Life Insurance. It provides a lump sum equal to 20% of your Life Insurance if the insured suffers one of the specified conditions. Up to five claims can be made during the term of the policy.
Designed for small business owners who are the majority shareholder or key business person. Being the most important asset of your business, it is important that you get a tailored plan so you can protect yourself and your business partners if you are unable to work due to illness or injury.
Different types of cover to think about include:
- Life insurance - to fund buy & sell agreements
- Business Overheads insurance
- Locum Cover
- Retirement savings
Savings
Whether it is for a special holiday overseas, children's education, the deposit on your first house, or your retirement, at some stage in your life you'll want to save for a goal. The most likely scheme that you will be interested in is KiwiSaver.
For most New Zealanders there will be a considerable gap between what they want to spend in retirement and what they will receive from the state pension. Whatever your desired retirement lifestyle, you'll almost certainly want to set aside funds to fund this gap and have financial independence in retirement.
The greatest risk most savers face is that they spend their retirement savings before retirement. By locking in your savings, you ensure they will be there when you need them.
Click here to find out more on our KiwiSaver scheme.