Some need to know, with a bit of WealthDesign nice to know thrown in.

Ensure your $68,000 ends up in your hands!

Insurance does work, but you need the right team on your side.

A farmer I met the other day had a heart issue, 18 months ago. The result was a quick trip to Wakefield Hospital, and a long recovery back to health. The farm was sold and the family moved onto a lifestyle block. The bank was repaid and they decided it was time to review their insurance. No debt meant they didn’t need the life cover they had previously.

I was asked to go see these guys to help them in this process. They had a policy that had been in place for years and the person who had set it up had left the industry and no one had ever been in touch to review their policies. They didn’t really understand what they had in place, but felt they didn’t need to be paying big insurance premiums.

In the review process we found that the farmer had $60,000 of trauma cover and even though the illness that triggered a claim had happened 18 months earlier, with a little bit of work behind the scenes by WealthDesign, the insurer honoured the claim. In fact, they also repaid the premiums (another $8,000). This is great news and shows that insurance does work, you just need to have the right people on your team.

There are a lot of people out there who don’t understand what insurance covers they have, and don’t have a team like WealthDesign on their side who are working on their behalf! Paying for insurance that you don’t end up claiming on, is like taking your money and flushing it down the toilet! We understand how this can happen, however it’s totally avoidable. The key is to keep up your reviews, and work with a trusted professional who has your back.

The farmer was going to write to his insurer and just cancel the cover. If he had, he would have missed out on the $68,000, and never even known.

Give us a call to ensure you’re in the know when it comes to your insurance and financial affairs. We are there every step of the way.

john copy

John Barber
WealthDesign – a life well planned

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Insured is not always insured

So you think you’ve got insurance and that you’re covered, right? People often think of insurance a bit like pregnancy – you either are, or your not. Not true, unfortunately.

When you sign up for your insurance policy, you don’t tend to read the policy wording – small print isn’t interesting, and we often think it’s just, well small print. Well that small print can become very LARGE instantly, come claim time, and an illegal act has been committed.

We all think we’re law abiding citizens, and that our insurance will give financial security to our family if we were to die in an accident. Just because you have a policy (and have been paying the premiums year in and year out), it doesn’t mean your claim will be approved when called upon.

Here’s an example. A claim was recently declined under the illegal acts exclusion, when a passenger in a car died because she had not put on her seatbelt. Mere forgetfulness can lead to claims being declined.

Here’s an example of some illegal acts that you may recognise from your own driving history:  straying over the speed limit, drifting out of the correct lane, failing to give way, and not to forget failing to wear a seatbelt.

Here’s an example of exclusions, straight from a New Zealand bank’s policy wording:

This Policy will not operate, and the bank will retain any premiums paid, if the Insured dies (directly or indirectly) or develops a Terminal Illness (directly or indirectly) as a result of:

  • An injury or an illness arising from an act which was intentionally self inflicted, within 13 calendar months from the later of the Commencement Date or the Date of Reinstatement;
  • The Insured’s involvement in an unlawful act whether or not the Insured is charged or convicted of an offence in respect of that act; participation in war (whether war is declared or not), warlike operations, insurrection or civil commotion.

I’m not picking on banks, nor am I implying that it was a bank policy that was declined in the example above, but I’m highlighting that not all insurance policies are equal, and people need to be aware of what can happen if you use the wrong insurance provider, with substandard policy wording.

All of this can be avoided though, by using an insurance provider with more consumer-friendly policy wording in their policies.

WealthDesign works from claim time backwards! We would never recommend a policy with such a large ‘get out of jail’ for the insurer. If you have a policy with this exclusion, I recommend you consider reviewing your insurance portfolio, as soon as possible.

Give us a call – we work for you, to get you the best possible outcome, in every situation.

john copy

John Barber 
WealthDesign – a life well planned

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Inspired for life – in 2017

Well done everyone – Sunday December 25th is in sight! The frenetic pace of life is soon to be replaced with chill time, relaxation and doing what takes our fancy for a while. Whew! 

Here’s a neat little tool that may help you to reflect on what you want to experience and achieve in your life – both in 2017 and beyond. If you’re looking to transform your world, try this bucket list idea. Focusing your mind in a different way, turns your brain into a ‘heat seeking missile,’ and opportunities appear to head you in the direction of life you want to live.

Inspired for life

So we suggest you print it, then find a sunny spot and grab your favourite cuppa/glass of ……., and create your bucket list.

Here’s our chance to wish all of our awesome WealthDesign clients the most amazing Christmas possible. Thank you for choosing WealthDesign to be part of your financial team in 2016. We are privileged to work with you and revel in the opportunity to help you get to where you want to go in life.

May your days be merry and bright! 

 

WealthDesign
A life well planned

 

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An ETF or Exchange Traded Fund is like a unit trust but listed on the stock exchange such as the NZX or the ASX.  The great thing is these investment tools are a cheap way to invest into diversified assets without the expensive fees attached to many unit trusts (let alone the performance fees some investment outfits slip in as well).

ETFs can invest into anything from commodity indexes or share market assets to listed property assets.  The ETF assets are directly linked to the underlying assets and don’t have the problem that some listed investment companies have. In some cases listed investment companies can either trade at a premium or discount to their underlying assets. With the structure of ETFs this can’t happen as the under lying asset value and dividends, flow directly to the investor.

I see these funds as a good way to get exposure to assets, that historically, would have required people to use unit trusts (run by big New Zealand institutions) to access . Now investors can access global investments and have the transparency of knowing where their money is invested, and the peace of mind that they can access their cash when they need it.  All of this is backed up by independent research.

Give me a call to learn more.

john copy

John Barber
WealthDesign – a life well planned

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