Here’s a quick guide that explains why life, loan and income protection insurance helps protect the thing that matters most – you.
When it comes to insurance – in particular, personal insurance – the classic ‘she’ll be right’ attitude sometimes leaves us Kiwis lacking. We seem to be great at looking out for our homes, our contents and our cars. But when it comes to insuring ourselves, a lot of us aren’t covered.
Many people think that owning a house will be their greatest asset, but in fact, it’s often your ability to earn. The amount you could potentially earn over your lifetime will normally far outweigh the cost of any property that you own.
Material things like your car, your house and your personal items are important – but they can all be replaced – you can not. And whilst having insurance could never make up for your loss, it could provide much-needed financial security for you and your family, should disaster strike.
Many people think that this kind of insurance only matters when you buy a house or start a family. However, the ability to support yourself financially is important at any life stage, particularly if a serious illness or disability suddenly prevented you from working. Whilst having health insurance could mean you don’t have to worry about paying your hospital and treatment bills, it still won’t cover any of your living expenses.
ACC provides treatment and rehabilitation services for anyone who suffers an injury as the result of an accident. Eligible cases can apply for 80% income compensation. However, it doesn’t cover you for anything that ACC doesn’t consider to be an accident, in particular; illness.
If you’re not covered by ACC for loss of earnings while you are recovering or are unable to work, you could struggle to pay your day-to-day bills – unless you’re insured.
Having health insurance is really valuable; it provides peace of mind and protection for costs associated with diagnosis, treatment and surgery. But it won’t cover the everyday costs like rent, petrol and groceries while you recover. With insurances like income protection, if you are covered you don’t have to worry about how you’ll pay for your everyday expenses – so you can just focus on getting better.
It’s important to make sure you have the right type and level of insurance that suits your needs. Some people only have life cover – but what happens if they get sick? How will they pay their bills while they are recovering, or if they’re unable to work again?
Unfortunately, many people don’t realise they’re underinsured until it’s too late.
To work out the type and level of insurance cover you need, it’s best to sit down with an expert – like one of our ASB Insurance Managers. But as a starting point, you should bear in mind any debts you have – things like mortgages, credit cards or personal debt. Then beyond that, work out how much you and your family need, in order to continue the lifestyle you have.
When things change – make sure your insurance does too. Life moves on, babies are born, houses are bought, children move away – the cover you had a year ago, might not be what you need now.
Your cover needs may increase or decrease over time. Plus, the type of cover you need may also change. So make sure you review what you need with an ASB Insurance Manager on a regular basis.
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ASB life, health and disability insurances are underwritten by Sovereign Assurance Company Limited (“Sovereign”). Sovereign is part of the Commonwealth Bank of Australia Group and is a related company of ASB Bank Limited and its subsidiaries (the “Banking Group”). None of the Banking Group, the Commonwealth Bank of Australia, or any other company in the Commonwealth Bank of Australia Group, or any of their directors, or any other person, guarantees Sovereign or its subsidiaries, or any of the products issued by Sovereign or its subsidiaries. For full details refer to the relevant policy document which is available on request from any ASB branch or by calling 0800 200 252. The availability of insurance cover is subject to your application being approved. All applications are subject to individual consideration. Special conditions, exclusions or premium loadings may apply. See further information about Sovereign.