simplebooklet thumbnail

Insurance Mistakes And How To Avoid Them

www.ilg.co.nz
INSURANCE
MISTAKES AND HOW
TO AVOID THEM.
CREATE YOUR OWN PEACE OF MIND
Designed by Ibrandify - Freepik.com
www.ilg.co.nz
ILG wants to help you achieve peace of
mind and complete protection.
If you are not informed about your insurance you may
not be protected or may be paying far too much. Simple
as that.
WHO NEEDS THIS BOOK?
This Insurance & Lending Group e-book is for anyone whos thought:
Do I really know anything about my insurance?
OR
I know what my insurance policy covers but what mistakes am I
potentially making?
Designed by Alekksall
-
Freepik.com
www.ilg.co.nz
HAVING ZERO PERSONAL INSURANCE
Can you believe that only 57% of New Zealanders insure their lives while 95% of
home contents and cars are insured? This lack of insurance cover is because Kiwis
see personal insurance as much too complicated and believe that nothing will ever
happen to them, as well as waiting until they are older to buy insurance.
THE UNEXPECTED
Unfortunately the unexpected happens and people get taken by surprise and are
unprepared. For example current stats suggest in your lifetime there is a 1 in 3
chance of developing cancer, 1 in 4 chance of heart disease, and a 1 in 5 chance of
having a stroke.
CRAZY
So isnt it crazy that you insure everything except yourself, the only reason you have
assets is because of your ability to create income.
www.ilg.co.nz
NOT INSURING YOUR INCOME
Statistics show over a million Kiwis have a form of health insurance which allows
them access to medical care, but many neglect to insure their income collecting
ability.
UNDERESTIMATING VALUE
New Zealanders underestimate the value of being able to create an income. If you
have no protection plan and for some reason you cannot work and eventually your
income stops, your assets will quickly disappear.
IMAGINE A MACHINE
A good way to think about it is to imagine a machine that provides you with a set
amount of money every week; if that machine were to stop you would be left with
nothing. Covering yourself with insurance means that if the machine were to stop
then a technician could come and fix the machine, and continue to help you survive.
The cost of insurance is much less than the amount of money the machine provides
you with, therefore it is well worth it to make sure that the machine is protected from
anything and everything.
Being able to earn an income means you can support yourself; insuring yourself
means that if you became vulnerable you have the protection you need to survive.
Designed by Dooder - Freepik.com
www.ilg.co.nz
PRICE INFLUENCED INSURANCE POLICIES
No one wants to buy insurance, but they NEED it. Much like buying fuel for your car,
you dont want to buy fuel but you need it for transportation. Some days you might
be very low on fuel and push your cars limits so you dont have to fill up again; taking
this cheap route could end up with you stuck in the middle of nowhere with a useless
car. This is much like buying insurance that does not provide sufficient cover, you
may find yourself vulnerable and stranded due to lack of protection.
PEACE OF MIND.
With insurance it is essential to be certain that you are fully covered in the event of
an unexpected tragedy. Peace of mind should always come before price, however
price is still important.
SHOP AROUND
You should definitely shop around for the best policies that suit you. Using an
independent agent or a broker is a good way of getting advice on creating a
protection plan that suits you and your budget.
You wouldnt buy a pair of shoes that would fall apart quickly, and the same goes for
insurance. Quality should be your main focus QUALITY IS #1
Designed by Dooder - Freepik.com
www.ilg.co.nz
GETTING INSURANCE WITHOUT ADVICE
Everything these days can be done online, including insurance! Using online
insurers allows people to purchase a policy online, sometimes with lower premiums.
This process can be faster, convenient and cheaper.
HOWEVER, protecting you and your family should not be diminished due to price.
LESS COVER THAN YOU SHOULD HAVE
Some online insurers offer significantly less cover than traditional insurers. While the
big insurers usually cover over 40 conditions in their trauma policies, some online
insurers only provide protection for 4. In the insurance industry, usually if you are
paying less, then you are getting less!
BROKERS ARE ON YOUR SIDE
Therefore it is essential that you consult an independent broker for advice on which
insurance product to buy; otherwise you may find yourself with insufficient protection
for you and your family. Brokers are also extremely valuable to have when it comes
to making a claim. A good broker will really go out to bat for you.
Designed by Alekksall
-
Freepik.com
www.ilg.co.nz
BUYING INSURANCE FROM BANKS
Banks protect peoples money and bakers provide bread and cakes to eat; trusting
your bank or baker to protect your life and ability to create income could mean you
find yourself un-protected.
BANKS OWN INSURANCE COMPANIES
Banks are not independent and often own insurance companies. This can create
issues when you buy insurance from your bank as they may only be able to offer you
one product; as well as serving their best interest by only offering insurance from
the company they own or have a preferential arrangement with. The problem
with this is you may end up with an insurance policy that does not suit you as well
as one from another insurer. Another result may be higher premiums for the products
that do not even suit your situation.
TAILOR-MADE PROTECTION
Using a broker means that they will study your circumstances and will then be able
to create a tailor-made protection plan for you.
Designed by Liravega - Freepik.com
www.ilg.co.nz
LEAVING YOUSELF LEGALLY VULNERABLE
Being married and owning an insurance policy together speeds up settlement if you
pass away. If you are the sole owner of an insurance policy and you die, the question
is asked of where your assets will go. This process can be long and stressful for your
beneficiaries, particularly if relatives argue about their share of the estate.
AVOID LEGAL DISPUTES
One way to avoid this is to have joint ownership of your insurance policies. Your
spouse will immediately receive your life insurance pay-out if you die, preventing
legal battles and false claims to your assets.
It is a quick and easy process to remove one another from each others policies in
the event of a divorce.
WILL POWER
Everyone and particularly single people should have a will in place that ensures your
assets go to the right people or organisations. Your lawyer can help you set your will
up properly.
www.ilg.co.nz
NOT REVIEWING INSURANCE WITH ADVISORS
Most people get their insurance policy and forget about it except for making payments;
when did you last go over your policies and chat with your broker? Chances are your
situation has changed since you bought your policy and you may find you are over
or under insured!
THINGS CHANGE
Handy Tip: Make use of your insurance broker and use their services and advice, try
and meet with them at least yearly to go over your insurance situation. They can save
you money and give you a sense of protection. There are a number of changes which
can alter your insurance situation including:
Having children Children leaving home
Marriage or divorce Increased income or debts
Buying a property Buying a business
STRESS REDUCER
When it comes to making a claim, your broker will work hard for you and liaise with
your insurance company to make sure your claim is quickly processed, protecting you
and reducing stress by providing peace of mind.
Designed by Alekksall
-
Freepik.com
www.ilg.co.nz
On Behalf of:
Insurance & Lending Group
-
Freepik.com