WealthDesign

Women have always fought for a better deal for their children, for their families and for women in general. In fact, New Zealand women have lead the world in making progress for women’s rights, starting as far back as Kate Sheppard’s charge for women to vote in a national election.

The What Really Matters Report from Aegon UK has found that despite 71% of mothers saying the financial security of their children is among the top priorities in their life, 57% of mothers have no protection cover at all, and 49% have never discussed what would happen in the event of their death.

The report also says that 72% of mothers go out to work to support their families, but are underestimating their financial importance to the family unit. Even Forbes Magazine reports that a stay-at-home mum is worth $113,000 a year.

While the Aegon research is from the UK the average New Zealand experience is likely very similar. As an adviser, I frequently encounter families that have under-estimated the potential financial loss from the death of the mother. Recently we have seen news stories about dependent children publicly appealing for help to pay the mortgage after their mother died.

Nobody wants that to be their legacy, and a reliable adviser is pivotal in helping translate your priorities into the most appropriate actions to protect your family’s future. For around the price of a cup of coffee per week a 40 year old woman can buy $250,000 or more of life insurance. Talk to us.

Regan Thomas

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We are often asked to insure people’s assets. They always insure their homes but often forget about their largest asset – the ability to work.

Every working New Zealander is covered by ACC up to 80% of their take home pay. But are you aware of the ACC cap of $91,014 per year? High income earners are capped, so if you are earning over $109,000, you are not going to get 80% of your salary in the event of an accident.  This highlights the need to consider private income protection cover, to make up the shortfall.  Your costs will still remain the same, so having your costs covered during any health challenge will bring peace of mind.

Are you aware that different insurance policies have different policy wording relating to ACC payouts? In some cases, all of the ACC payment comes off anything that the insurance company will pay.  But this isn’t the case for all companies.  This is where having the right insurance, with the right insurance company becomes vital.

If you have income protection, you need to talk to us about checking the wording. If you don’t have income protection insurance, then you really need to talk to us!

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Homeowners – remember your sum insured is stipulated now by you. Make sure you have the figure right.

Up until now, your house insurance covered the cost of full replacement – easy. Now, insurance changes mean that you have to stipulate a total sum insured – complicated! This sum insured includes things like driveways, fences, swimming pools and if you’re a country dweller, septic tanks. It also needs to cover demolition and compliance costs of rebuilding.  Daunting we know, but there are tools to help. The best one we have found, is the website need2know.org.nz. This has a calculator that can work out the individual replacement value of your property. Once you have this vital piece of information, call us. We’ll put together the second part of this puzzle for you – the best price and policy to suit.

We make the complicated simple.

Call us!

John Barber and Regan Thomas

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It is a sad fact that we often see the impact of people opting for Plan A, which is no insurance,  rather than Plan B, which is a prudent, well structured insurance portfolio. We hear the stories of families put into financial difficulty due to a death or disability within a family.

Unfortunately disasters do happen and a decision not to have insurance is a decision to take Plan A. The unintended consequence of this decision is far reaching. Yes, simple in the short term, but often devastating in the long term.  The last thing a widower wants is financial pressure after the loss of their loved one; but it happens far too often. In the first two months of this year, I have come across two such cases.

Our clients have had the benefit of the hard conversations. We have had a look at the “what if” questions and put in strategies to cover these potential disasters. This gives our clients peace of mind, and the ability to get on with life, knowing if the worst should happen, at least financial woes won’t be part of the equation.

Talk to your family (immediate and extended) and ask the question – have they had the discussion around risk?  If not, please let us know.  We are happy to sit down and have a conversation around this thorny issue.  We have answers; ones that won’t break the bank and will bring you peace of mind – Plan B, in other words.

John Barber

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There are a lot of people out there who are uninsured, and new approaches aimed at reaching them are welcome, as we all too often see the disastrous results of underinsurance, or no insurance.

There are companies launching online-only life insurance products, which appear to be aimed at people who are time poor, DIY-ers.  Great idea in theory, as they are trying to be simple, easy, and quick. However, trying to simplify an often comprehensive concept doesn’t always give the client the best outcome.  The fine print all of a sudden becomes much larger at claim time, and what seemed like a simple, easy and quick buying decision can end up costing – both in time and money!

Most non-adviser products advertise along similar themes, sometimes claiming to be cheaper because they don’t have to pay commissions (they instead spend a fortune on expensive advertising). The reality is these are generally highly limited insurance policies, filled with draconian exclusions that are often priced higher than adviser-based products.

Many people have complex business or family affairs, legal structures, or health issues that need to be understood. Most would appreciate some help working out what type of cover, and how much of it, to buy.  All appreciate having assistance preparing the documentation for a claim and dealing with the aftermath.

For most people, advised insurance ends up costing less than online or direct products.  After comparing several insurers, an adviser will select a policy that is suited to you, and will not sell a policy that has unusual exclusions, wide reaching ‘anti-claim’ criteria and contentious wordings etc. 

So it turns out that using a good adviser will mean you get a good policy that will work when you need it.  Someone to help choose, obtain, maintain and claim on the policy, and it will cost less than doing all the work yourself. Plus, you’ll have the support of an adviser who has your back, and who wants the best outcome for you.

Regan Thomas

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