Sometimes it can be hard to appreciate the benefits of insurance until you need to make a claim. But having the right protection in place will provide you with peace of mind and security. Insurance is a vital, but often overlooked, component of a good financial plan. While you can plan your investment strategy, you can’t always plan for life’s unexpected events. But you can plan to protect yourself, your family, or your business against loss if one of those events were to happen.
How much cover do I need?
Everyone has different insurance needs, and we’ll help you work out what yours are. As a general rule, insurers will allow you to apply for cover up to fifteen times your annual income. To work out how much you need, calculate a lump sum that can be invested to provide an income for your family. Then add up your debts, subtract any life cover and superannuation savings, and the difference is how much insurance you need.
What kind of insurance do I need?
Life Insurance: While it’s never nice to consider that something might happen to you before your working life is over, this is the case for one in seven people. You may never need to claim on life insurance, but it’s important to make sure that your loved ones are protected from financial hardship if the worst were to happen.
Trauma Insurance: If you suffer from a major illness, such as cancer or a heart attack, trauma insurance will provide you with a lump sum payment, to help you and your family cover expenses during your treatment and recovery.
Income Protection Insurance: In the event you’re unable to earn your normal income due to accident or illness, income protection will pay you an ongoing benefit. This kind of cover is vital if you have debts such as a mortgage or business loan. You wouldn’t hesitate to insure your house. Make sure you insure what pays for that house – your ability to earn.
Health Insurance: If you become ill or require elective surgery, health insurance gives you peace of mind that you’ll get prompt treatment from the specialist of your choice, without the worry of being on a long public health system waiting list. Depending on the type of policy you choose, it can also cover you for doctor’s visits, prescriptions, dental, optical and diagnostic costs. We’ll help you work out which one is right for you.
Source: NZ Health Information Service.
Let us help you review your insurance cover to make sure you and your family are properly protected. Contact your nearest Camelot office today.