Insuring yourself

There are two main types of insurance

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Insuring your stuff - The basics. We're pretty good at this. 

Insuring yourself - This is where most people fall short. What happens to you and your family if you can no longer earn an income? Who will cover the mortgage? How will you afford to live?

There are four ways to insure yourself

 
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1. Medical Insurance

  • Pays for medical bills if you get sick

  • Provides private treatment straight away (no waiting for months)

  • Gives you access to non-pharmac approved drugs by subsidising them. (ie expensive cancer treatment)

  • Kiwis use medical insurance an average of four times before turning 65

 
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2. Income Protection

  • Pays a percentage of your income if you can no longer work.

  • Most people are off work long-term due to illness, not accident (therefore not covered by ACC).

  • One in five Kiwis will use income protection in their life (even for a short amount of time, it pays to have the option).

 
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3. Trauma Insurance

  • Pays a big lump sum of money if you are diagnosed with a serious illness.

  • Biggest claim is for cancer - one in three Kiwis claim their Trauma pay out.

  • Can be spent on whatever you like ie pay your mortgage off, alternative treatment etc.

  • If you don't have an income (ie a stay-at-home parent) this money can be used to replace your income protection.

 
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4. Life Insurance

  • Your family gets a big lump sum payment if you die or are diagnosed as terminally ill.

  • Gives financial stability to your loved ones, even if you're not around. To pay off debt, and provide ongoing support for your family.

  • Who do you want the money to go to? You need to specify in your Will, otherwise, the court decides.