We all know that insurance protects us from the unexpected, but what kind of cover do you need, what is best, and how do you figure it out?
Understanding what the right cover looks like can take a bit of investigation but taking the time to delve into the fine print will be worth it in the long run.
There are three main aspects of personal insurance – asset insurance (homes, cars, contents), health insurance, and income or trauma protection.
So, how do you know what cover you need?
Asset Insurance
Asset insurance covers things like your car and your home and its contents. It is probably the easiest of all insurance categories to understand and implement. The only tricky part is ensuring that you have the right amount of cover if you need to replace or repair any one of your assets.
Most insurance providers have online calculators or other tools to help you work this out.
Health Insurance
Here in New Zealand, we are very fortunate to have an excellent public health system. Everyone has access to basic health care when they need it.
But what if you encounter something that falls outside the box, or you need urgent treatment, and there is a waiting list? In those cases, you will be thankful for medical cover. A health insurance policy will mean that you can access the private system and get the treatment you need when you need it, minus the exorbitant price tag.
Health cover is a complex field with many different eventualities to consider. The truth is that at some time, almost every family will encounter serious illness, trauma, or a disability. The emotional aspects of grave illness or unexpected trauma are significant. The various policies available ensure that you and your loved ones won’t have to carry a financial burden on top of everything else.
Income or Trauma Protection
“What would happen if you were hit by a bus tomorrow?”
A cliche, yes, but in the case of Income Protection Insurance, the sentiment is pertinent. If something impacted your ability to earn suddenly, what protective measures do you have in place?
The bus is not the only thing you need to watch out for. Serious illness, redundancy, and corporate restructuring can also derail your income in an instant.
Your income is your most important asset of all, yet many people do not protect it in any way. Income Protection Insurance will ensure that your family are taken care of even if something happens to you or your source of income.
If you are unsure which insurance cover to invest in, sitting down with an insurance broker or advisor to discuss your options is a great place to start. If you have existing policies, an advisor can help you work through them to determine if they meet your needs and leave you and your family with adequate protection.