It’s been smooth sailing for the New Zealand economy in recent years, with many sectors enjoying unprecedented growth. Nowhere has this been more apparent than in the property market, which has seen extraordinary gains across just about every part of the country. While there are signs that things are starting to cool off, that didn’t stop the average house price climbing 12 percent between January 2016 and January 2017, according to figures collated in the Trade Me Property Price Index.
You’ve probably enjoyed fantastic capital gains over this period, but have you considered what would happen if you found yourself in a position that prevented you from working?
The financial impact of sudden illness or disability
At the risk of sounding all doom and gloom, accidents, disease, and illness are very real risks in today’s world and can be hugely disruptive to your business, finances, and lifestyle if you don’t have the proper insurance coverage in place. Unfortunately, many Kiwis know this first hand – almost 1 in 4 (24 percent, or 1.1 million people) people are identified as disabled, according to the results of the New Zealand Disability Survey in 2013.
The sudden onset of a serious illness or disease that impairs your ability to work could have severe ramifications. Beyond the emotional stress that accompanies such events, it goes without saying that mortgagees would almost immediately struggle with the loss of income, while even those who are debt free would experience financial pressure.
Looking beyond simple life and medical insurance
What I find perhaps more problematic is that an even greater number of people don’t have the correct or sufficient illness and/or disability protection. I want to make the distinction here that I’m not talking about medical or health insurance – I’m referring to specific insurance terms such as:
- Mortgage Repayment Cover
- Income Protection
- Trauma Cover
- Key person Cover
- Total and Permanent Disability Cover
I won’t get into the differences and details of these policies here as they are quite nuanced; all you really need to know is that they protect your family’s lifestyle, your assets and your business in the event that you suffer from a serious illness or disability.
However, if the cover isn’t structured correctly for your needs or the quality of the cover isn’t up to scratch, it can still leave you exposed to financial risk, which is the last thing you want to be thinking about when your health is suffering.
We have extensive experience in this area. Although our advice, unfortunately, won’t fix your medical issue, we can keep your business trading profitably, your staff in employment, your mortgage paid and your children in their extra curricular activities.
Essentially, our advice will minimise disruption and keep life flowing as normally as possible. We want to relieve you of financial stress and allow you to concentrate on the most important thing: your health. While we sincerely hope you don’t need our services and advice beyond this point, if you do need to make a claim the team at Penberthy Insurance is here to guide and help you through the process.
For advice you can trust, please come and see me to discuss your needs. We’ll draw up a tailored Life, Diablility and Medical Insurance solution customised to meet your unique circumstances and ensure that it remains in line with the needs of your family and business as times goes on.