Us Kiwis are known for our “she’ll be right” attitude. We prefer to deal with the present and try to
avoid thinking about the ‘what ifs’ or what could go wrong. The truth is sometimes our “she’ll be right” approach just doesn’t cut it – especially when it comes to insuring ourselves and our loved ones.
A recent Massey University Study, commissioned by the Financial Services Council, has cited our ‘she’ll be right’ attitude as one of contributing reasons as to why New Zealanders are under insured by $650 billion. The two-year project found that in each household, the average primary income earner’s life is under insured by more than $85,000 while the average secondary earner’s life is under insured by more than $60,000. These figures indicate that as a nation, we’re putting ourselves and our families at serious financial risk should an income earner die or suffer a serious
illness like cancer, heart attack or stroke.
As an insurance advisor I’ve see far too many people suffer because they don’t have the right level of cover in place. There are countless cases of people left behind after a death who struggle with financial hardship. Some are forced to turn to the Government for assistance, while others suffer the additional loss of losing the family home.
So how do you know what the right level of cover is? Like many things, when it comes to insurance there is no one size fits all solution. The products and level of cover you need entirely depends on your individual circumstances. Let’s take a look at life insurance. The most common mistake people make is assuming they’ll only need enough cover to take care of the mortgage or funeral costs. In most cases this is not enough, especially if it is the main breadwinner in your household who passes away and the surviving spouse has children to take care of.
Another thing that’s holding us back is our perception that good insurance policies are unaffordable. This simply isn’t the case. For the young and healthy, buying life insurance at an early age can have huge financial advantages. Being in good health greatly improves your ability to qualify for a life insurance policy that is easily affordable and can save you a great deal of money in the long run. While some insurance companies don’t take the time to go through all the options with you, good insurance advisors do. Don’t ignore it, don’t think she’ll be right and don’t leave it until it’s too late. Talk to an insurance advisor about the options available and consider what’s best for you.
A free disclosure statement is available on request.
Foresight Financial Planning received HighlyCommended in the New Business Excellence category in the Taranaki Business Awards 2013.