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What type of insurance do I need?

Wealth Works Authorised Financial Adviser Gitte Helle-Nielsen breaks down your insurance options…

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Insurance is the one thing we invest in and hope to never get a return on! The insurance principle dates back to early human society based on barter/trade and monetary economies. If a house burned down in a village, the neighbours would help to rebuild the house. Chinese merchants would redistribute their goods across as many vessels as possible to limit their loss in case one vessel should capsize. The Babylonians developed a system so if a merchant had to get a loan to fund a shipment, they would pay the lender an additional sum in exchange for the lenders guarantee to cancel the loan should the shipment be stolen or lost at sea. Nowadays our options are a little more complex and varied, which means that understanding your choices can be overwhelming. That’s why we’ve broken down your insurance options below.

What is Medical Insurance?

We are very fortunate in New Zealand to have an excellent public health system. If you get hit by a truck tomorrow you’ll receive immediate care. However, as a priority based system the more urgent cases will always take priority, which means you might find yourself slipping to the back of the cue and that’s where Medical Insurance steps in. You can claim costs for specialist appointments, tests and private medical treatment options and we see our clients benefit from medical insurance every week. We recently had a client in need of a hip replacement and rather than sitting on the public health list for months on end she was able to have her surgery, recover and head back to work in no time.   

What is Income Protection Insurance?

Before we get started on this one, calculate your annual income x the number of years you have left in the workforce and for most of us it’s quite a big number and means that more than likely, your earning potential or your income, is your biggest asset. Income Protection Insurance is a monthly benefit that you will receive in the event that you are unable to work sue to sickness or injury. Please note that it does not cover redundancy or you being out of work by choice. We worked with a young couple who really benefited from this cover. They were in the process of building their dream home when the young man was diagnosed with Cancer. The income protection kicked in after four weeks and they were able to continue as planned. He has now recovered and today they have their dream home without an extra mortgage. It was fortunate that he put the cover in place then as he’d be unlikely to get full cover now.  

What is Trauma Insurance?

Trauma Insurance is a lump sum you’ll receive in the event you suffer an illness such as Cancer, Motor Neurone Disease or Multiple Sclerosis. Some providers will also cover up to $50,000 per child in addition to your cover. We had a client recently who used part of his pay-out to cover his mortgage so that he could take time off work to receive his treatment. He has now made a full recovery and returned to work with his financial future intact.   

What is Life Insurance?

Life insurance is a lump sum for you and/or your family in the instance you receive a terminal illness diagnosis or pass on. Unfortunately, tragedies do occur and Life Cover can bring financial relief. We worked with a couple who had two children aged 5 & 8. When they lost their Father in a tragic circumstance Life Cover allowed Mum to stay at home for several years to take care of their children. The cover also meant that the mortgage was covered plus there was an education fund to help the children in their later years. It’s a small consolation of course but it does take one worry off the table.   

What is Total and Permanent Disability Cover?

Total and Permanent Disability Cover is a lump sum that you’ll receive if you completely lose your ability to ever work again as a result of illness or injury. One of our clients were after many years diagnosed with Alzheimer’s disease and the lump sum pay out helped his family being able to afford help to look after him and keep him safe.

Find out the best insurance options for you and your family today 
Contact us today for a complimentary Insurance Review 09 306 5820
Gitte Helle-Nielsen | gitte@wealthworks.co.nz


 
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