If only we had a crystal ball to see into the future and figure out the perfect mix of insurances. But let’s face it, life’s full of unknowns. While we can’t predict what’s coming our way, we can take proactive steps to protect our financial futures.
In this practical guide, we explore life’s “what-ifs” to help you navigate the world of Life, Disability and Health Insurance. By thinking about the unthinkable and the financial challenges that you, your family, or your business might encounter as a result, it’ll be easier for you to choose the right cover. No crystal ball needed – just a willingness to plan for the unexpected and protect what matters most.
What if you’re unable to work for a while?
You never know when life will throw a curveball, like getting hit with an illness or having a nasty accident that keeps you out of work for a few weeks or months. You might’ve seen it happen to someone you know. At Moneybox, we’ve seen it more than you’d think.
Whether you have an established career in your 40s, or just starting out in your 20s, protecting your income is important, especially if you have people to care for. If your family is relying on you, having Income Protection Insurance can be a lifesaver. It’s like having a back-up plan that kicks in and gives you regular income to cover your everyday expenses if you’re unable to work for a while.
What if you’re unable to work ever again?
For temporary situations where you’ll recover, Income Protection Insurance can help keep the money coming in. But what happens if you become permanently disabled and unable to work again?
Total and Permanent Disability (TPD) Insurance is designed to reduce financial problems that could happen when you can’t work anymore. TPD Insurance provides a lump sum payment if you become totally and permanently disabled, including a disability that results in you being unable to work ever again. You can use this however you choose, from helping to pay off your mortgage, to covering medical expenses or even investing it.
What if you need a medical procedure?
In New Zealand, we’re lucky to have access to public healthcare through our publicly funded system, but Health Insurance (also called Private Medical Insurance) gives you options when it comes to managing your health and well-being, and can be one of the fastest ways to getting back on your feet again.
Health Insurance supports 1.4m Kiwis to meet their health care costs. Around a quarter of claims come from customers aged younger than 45, who claim for a range of services, from dentist and GP visits, to specialist consultations, diagnostic tests, and surgery.
While Health Insurance is considered a luxury by some, it’s worth the investment for anyone who can afford to pay the premiums, and it eases demand on our public healthcare system. At Moneybox, we aim to strike a balance between adequate cover and affordability. We’ll help you determine the right type and level of cover for you by looking at the full picture – your health history, lifestyle, family situation, and age and stage in life.
What if you get seriously ill?
Thanks to modern medicine, many illnesses are survivable these days. But what if you experience a major health event or receive a serious diagnosis? It can impact your income and lead to unforeseen expenses. That’s where Trauma Insurance (also known as Critical Illness or Crisis Insurance) comes in.
Trauma Insurance provides a lump sum payment if you’re diagnosed with certain conditions, giving you financial protection during tough times. You can choose to spend the payment however you wish – for medical treatments, rehabilitation costs, debt reduction or something entirely different – to help reduce financial stress at an already difficult time.
What if you were no longer here?
No one likes to think about their own mortality and what would happen to their family if they weren’t around anymore. Instead of getting caught up in those thoughts, you can take a proactive approach to protecting your loved ones’ future.
Life Insurance is like a safety net that pays out a lump sum if you were to pass away. With life cover, you can get peace of mind knowing that your loved ones will be taken care of financially when they need it most; so they can pay the bills, potentially pay off any debts and cover some loss of income.
When considering Life Insurance, it’s important you assess your family’s unique needs. The different types of Life Insurance can be confusing so it’s helpful to talk to an insurance broker or financial advisor. Moneybox is here to help you through the process. We’ll work with you to help you calculate the amount of cover required to maintain your family’s current lifestyle and meet future expenses. We take into account factors such as any outstanding debts, mortgage or rent payments, education costs, and ongoing living expenses.
What if you were diagnosed with a terminal illness?
Life Insurance policies will also pay out if you’re faced with a devastating terminal illness diagnosis with less than 12 months to live. With these policies, you have the option to request an early payout of your Life Insurance, giving you the chance to take control of your financial planning for your family’s future.
Some insurers also give you the option to top-up your premiums in order to receive an additional lump sum should you need it. This additional amount is offered to help you achieve those items on your bucket list and enjoy the time you have left.
What about your business?
Aotearoa is a nation of small businesses. According to MBIE, 97% of all businesses in NZ have less than 20 employees. If you’re a business owner, you know that key people in your business are vital to the success of your company. If one or more of those key individuals were to die or become disabled, your business would likely come up against financial challenges. And in some cases, your business may be forced to sell or face liquidation. Key Business Person Insurance helps protect against this. It gives businesses a realistic chance of surviving financially while future contingency plans are worked through.
Company Shareholder Insurance can also be helpful. If one or more of your company shareholders were to die or become disabled, a Company Shareholder Insurance policy would ensure the smooth transfer of shares between surviving shareholders and the deceased/disabled shareholder’s estate or administration.
And when it comes to looking after your employees, Group Insurance (also known as Workplace Insurance) is well worth considering. This is a specialised area that the Moneybox team has significant experience in across Life, Disability, Health, Trauma and Income Protection Insurance. Not only can Group Insurance schemes offer your employees peace of mind when it comes to protecting themselves and their loved ones, but they benefit you (the employer) too by serving as a powerful recruitment and retention tool, while demonstrating your commitment to employee well-being.
What if you don’t know where to start?
Investing in the right cover today can provide protection for tomorrow’s what-ifs. Exploring the options and comparing policies may seem overwhelming at first, but with a practical approach and careful consideration of your unique needs, you’ll be better-equipped to make more informed decisions.
Start by getting professional financial advice. It can save you a lot of time and money in the long run. At Moneybox, we’re here to help you choose the right mix of insurance products. We get to know you and consider your age and stage in life, your lifestyle, your financial obligations, any debts you have, your existing insurance policies, and your financial goals. We then provide honest, personalised advice and guidance on the best insurance options for you, your family or your business.
We know just how busy life can get. So we do the research and negotiate on your behalf to make sure you’re getting the best Life, Disability and Health Insurance options to suit your unique needs and circumstances, ensuring you’re well-informed throughout the whole process.
Whether you’re ready to reassess your insurance needs or just curious about what’s available, we’d love to hear from you. Get in touch today to arrange a completely free, no-obligation chat with one of our advisers.