Insurance Claims: The Importance of having a Will.

Throughout our 30 years of experience in the Insurance marketplace, there are a few key things that we always advise our clients to look into regarding their insurance. One of the most important of those things is having a will in place that is complete and current.

If you have insurance cover on your life for instance, without a current will in place specifying your wishes your crucial claims money could be delayed or misdirected in ways you did not intend. Your Life Insurance policy will pay out at the time of your death and you can use your will to specifically detail how the Life insurance payout should be used.

Fortunately, these days getting a will in place and certified is not a labour intensive or expensive process, and it is a crucial step to take. It is equally as important to ensure that if you do have a will, that you make sure it is current and check it each year at the same time as your Insurance Policy Review. Make sure that your specified dependants that your estate will be distributed to is exactly who you wish for it to be, and make any necessary changes so that in the event that a life insurance or critical illness claim needs to be made, the intended recipients can get the claims payout with as little stress or delay as possible.

The Public Trust of New Zealand offers services that will allow you to create your will online for as little as $69. This is a small price to pay when compared to the possibilities of your entire life claim being delayed by unnecessary days, weeks or more. For more information on the process and to visit the Public Trust’s Will Service you can click here, or contact any of our team for any help that you may you need.

Visit our official website for more information.

Request a free, no obligation insurance quote today.

Crucial Travel Insurance Advice and Tips

Recently, one of the Spratt Financial Services team was away on a two week vacation in the USA and Canada and though he couldn't quite believe his bad luck, his circumstances give a crucial insight into the necessity of travel insurance anytime you're abroad. Even moreso, it emphasises what to do and what not to do when something goes wrong while overseas.

All circumstances below are real and actually occurred during his travels.

1. Expenses Caused by Flight Delay.

The first incident came when he was flying from Los Angeles to Atlanta. In mid-air the flight was re-directed to Charlotte because inclement storms wouldn't allow the plane to land safely in Atlanta. He was grounded in Charlotte for 8 hours before the airline organised another flight to get to Atlanta. It arrived at 2:30am. Since his organised lift from the airport to where he was staying had fallen through over the delay, he was forced to book an unexpected night's accommodation at the closest airport hotel he could find in Atlanta.

What to do: Some insurers require confirmation of delay or cancellation from the airline, so make sure you get written confirmation from the airline that your flight has indeed be rescheduled or delayed. Also, keep your boarding pass and ask the hotel for a receipt confirming the cost of the stay and payment. This will ensure you have all necessary information and your claim will proceed smoothly.

2. Lost or Mishandled Baggage.

On a separate flight in the USA, our unfortunate traveller landed and after waiting 30 minutes for his baggage, realised it had not arrived. It turns out it had been put on the wrong flight and redirected to New York City instead. The airline couriered the bags to him 48 hours later to where he was staying in the US and luckily, the contents were undamaged and complete.

What to do: If your baggage is lost or damaged and you have to buy additional supplies/clothing/toiletries/necessities because of it, keep all purchase receipts. To be safe, don't be extravagant in your purchases and try to replace things that were in your baggage like for like. If your bags are lost entirely, get a written confirmation from the airline confirming the contents of your baggage and if applicable, what damage has been done.

3. Travel Interrupted Due to Sickness.

Lastly, six days before he was scheduled to return home to New Zealand, he was stricken with a severe stomach virus that caused three consecutive days of vomiting, nausea, weakness and intense stomach pain. He was unable to make the six hour flight from Nashville, Tennessee to Orlando, Florida and had to spend more days recovering in Nashville before heading back to LA and then back to Auckland from there instead. This involved a considerable expense or re-arranged flights, plus losing the value of the flights already booked that he was unable to make.

What to do: If you are severely ill while overseas and think that it may affect your ability to travel, it is crucial that you visit a medical professional and get a medical certificate that states that you are indeed sick and unable to travel. Without this, it is difficult or impossible to prove that you were indeed sick and the insurance may have reason to deny or reduce your claim. Also, keep all records of your original travel plans and all receipts and boarding passes of your new flights/alteration fees and proofs of purchase.

Conclusion: Because he invested in travel insurance beforehand and because he was diligent in keeping all the necessary documents and proofs, our team member was spared a loss of over $1,000. In even worse case scenarios, that cost can be even higher, depending on the seriousness of illness or the costs incurred by unforeseen circumstances.

Travel Insurance is generally inexpensive and well worth the investment, but its vital to be aware that just buying travel insurance isn't all there is to it. It's imperative that you take the time to get the necessary documents, confirmations and receipts when something goes wrong. If in doubt, make sure you always get it in writing. Most reputable travel insurance providers are not looking to deny your claim, but they do require the necessary proof that your travel was indeed disrupted in the way you describe. Be careful, and make sure you read your policy wording before you travel.

If you are worried about your upcoming travel or want the responsibility of claims taken out of your hands, we can be your link to affordable and comprehensive travel insurance and offer you our claims management service completely free of charge. If you're interested or would like a quote, contact us anytime here.

Spratt Financial Services Newsletter (Autumn 2017)

Check out the new edition of the Spratt Financial Services Newsletter here.

This edition features:

• The new Cancer Benefit recently introduced to the New Zealand marketplace and how it could be a better option for some than full medical cover.
• How you could have an Insurance Claim waiting and possibly not know about it.
• The top Medical Insurance claims for early 2017.
• Are you entitled to free money from the Government?
• When life changes: Should your insurance change too? A perspective from our professional insurance team.
  

How to Avoid Your Insurance Claims Being Denied.

Sometimes, people can get the image of insurance companies as money hungry corporate folk looking for any possible reason to deny all possible claims. Fortunately though, in the risk insurance market in New Zealand, that image doesn't hold true. The major reputable insurance providers that we deal with have a great record of paying out claims that are owed, provided they meet the specific conditions of the policy (which is why it's always a good idea to read the policy wording and know exactly what's covered).

In general, there are only a few reasons why your insurance claim could get denied, and as long as you avoid them, you can strongly depend on your insurance paying out when you need it during your difficult times.

1. Non-Disclosure: If you have a personal risk insurance policy and suffer injury or illness due to a condition you had prior to taking out your policy, and you failed to disclose this on your original applications, the insurance provider could reduce your claim or deny it entirely. We take considerable time with our clients to go through these forms and make sure every base is covered, but if you are going it alone, here are some things to keep in mind:

• Declare everything, no matter how small or minute you may think it is. If the condition isn't deemed to be serious by the insurers, your policy won't be affected in any way by declaring these things.
• Consult with your personal doctor or specialist first to remember any health issues you may have forgotten about.
• It is never a good idea to lie about current health status (or not being a smoker) to save money on premiums. The insurance company will find out upon claims (they are generally thorough) and will reduce or deny your claim because of it.
• You do not have to disclose conditions you develop after the policy is taken out and they will not affect the premiums you pay or any claims you take out. This is a good reason for you to consider taking out insurance when you are younger and healthier.

Proper and full disclosure may be the most important thing when taking out a policy.

2. Premiums Haven't Been Paid: An insurance policy is a contract between you and the insurer, which states that they will pay agreed upon amounts if its conditions are met. One of those conditions is the prompt and up to date payment of the agreed upon premium (the cost of the insurance policy). If the premiums haven't been paid up to date before the claim is formally requested, the insurance company may deny them or ask for payment before the claim is processed. Thus, its important not to get too far behind on your insurance payments as this is generally one of the only reasons claims get denied.

3. Conditions Have Not Been Met: If the specific condition or occurrence you're trying to claim for is not specifically covered under your policy, the claim will be denied. Sometimes a specific medical condition for instance can range in severity, and if the severity of your condition doesn't meet that specified in the policy, it won't qualify for a claim. The good news is, all of these details will always be specifically and thoroughly outlined in your policy wordings, so reading it thoroughly before, during and after taking out your policy is always highly recommended by our team.

In our more than two decades in the insurance industry we can assure you that insurance companies aren't looking to deny your claims. In return, their expectations of you are that you are honest, truthful and complete in your disclosures and maintain the agreed upon payments for the policy. If you have done so, you can rest assured that you will have very little to worry about when it comes time to make a claim.

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Insurance Advice and Tips

Insurance works best when it is used as the foundation for a plan that will protect a business, family or estate that is confronted by the disablement process. If you already have an insurance package (or you're looking for insurance) and you want to know whether your insurance will really be sufficient for your needs, here are the questions you should know the answers to:

1. What Will You Need The Cover For?

We recommend that you grab a pen and paper and write down what your insurance claim proceeds will need to be used for when it is paid out. If you can't do this now before tragedy strikes then you may be facing trouble later. Having this list in place can give you a reminder of where the money needs to go when it comes time to claim. With insurance, it's always better to be safe than sorry. 

2. Will You Be Able To Claim Soon Enough?
Life Insurance pays out in the event of actual or impending "medical death". However, in 94% of cases in New Zealand, deaths are due to medical conditions not accidents. 65% are these are due to degenerative medical conditions such as cancers, heart disease and strokes which can kill slowly over what may be an extended period of time. During this time, unable to work and unable to support yourself, your family or your business, you will be facing tremendous financial strain which your insurance may not cover for. Will the bank or your creditors wait until you are terminally ill before your life insurance cover pays out? This is perhaps the most crucial consideration to take into account when assessing your insurance. We can help you ensure that you are fully covered financially in the face of these worrying statistics as unfortunately, basic life cover is most of the time, simply not sufficient.

3. Is The Sum-Assured of Your Insurance Enough?
It may sound strange, but a $250,000 insurance claim may not be enough to repay a $250,000 debt. You may have additional interest payments, penalties for being in arrears and you may need to pay a Solicitor, Trustee or your Accountant to carry out these transactions for you. It is crucial that you set your sum assured at the right amount to cover your debt and provide adequately for your family and dependants should something happen to you. Take into account all factors, costs and if necessary, talk to us and we can help you find the amount you need.

4. Do You Have The Right Insurance?
If you have income protection insurance - do you have the right kind? If you have health insurance - what does your health insurance actually cover and what do you need it to? If you have permanent disability or critical illness insurance - how are these insurances structured within your overall portfolio of insurance and how will they work if something happens to you? The bottom line is, you need to figure out what risks you are most likely to face, take into account your lifestyle and your financial situation and then select the right insurance to meet your individual needs. This is why it's so important to have robust insurance advice from insurance professionals like us - we can find out what's right for you. Sometimes having the wrong kind of insurance is almost as bad as having no insurance at all.

5. Are You Making Assumptions About Your Insurance?
Making assumptions about your insurance without proper and solid research and planning is always a mistake. Even assuming that you or someone close to you will be physically, mentally and emotionally capable of applying the claim proceeds to your predetermined targets is not supported by our experience of dealing with over 200 insurance claims. Question everything, and get a second opinion from insurance professionals to make sure you've got it right.

6. What Should You Do?
We recommend that you use experienced professional advisers to not only design and review the underlying plan, but to execute it and carry out the tasks they are best suited to handle. If you don't have a plan now, prepared with clear-headed purpose, then any insurance you do have may well be insufficient or not adequately fit to your unique needs. Remember that if in doubt, you can always use our experienced professionals if you need guidance or advice - our service is completely free and no obligation, so you have nothing to lose!

Visit our official website for more information.

Contact us if you need help with your insurance.

Insurance Frequently Asked Questions (FAQ)

Spratt Financial Services presents our new and updated list of the most common insurance questions we receive and our answers to them. 

1. Do I really need risk insurance?

Health Insurance: Although it may seem easy to adopt a standpoint of ‘it won’t happen to me’ as it relates to insurance, it is an unfortunate statistical fact that you will require hospitalisation, surgery or medical procedures at some point in your life, in many cases more than once. Within the current medical system, the only way to ensure that you and your family will receive the treatment you need promptly and without throwing your finances into turmoil is by taking out health insurance.

 
Life Insurance: If you are the breadwinner of your family, or you want to make sure your loved ones are supported in the event of your passing, some form of life insurance is a necessity. Unless you have an extremely significant amount of savings to cover all of your debt and provide for your dependants as long as they will require, we believe that you should always have a life insurance policy in place. The risk is not worth taking.

Income Protection and Disability Insurance: People sometimes operate under assumptions that severe illness will result in recovery or a relatively quick passing away. Unfortunately, that is most often not the case. The large proportion of cases of serious illness (heart attack, strokes, cancer etc) result in a protracted period of physical disablement, during which time you will be unable to work and maintain the income necessary to cover your expenses - which will not be on hold until you to get better! This is why income protection and/or permanent disability cover can be essential if your family depends on your income to maintain their way of life. With the right cover, you can have the peace of mind that your income will be maintained in the event that tragedy strikes.

Key Person Insurance: If you run a business and your business prosperity relies on several key employees or directors, key person insurance is a very good idea. It will provide compensation for their loss if they are disabled through illness or injury and support your business financially until an adequate replacement is found and the business is back on its feet. In some instances, proper key person insurance can be the difference between a business surviving or having to shut down.

Although cover may seem unnecessary from a short sighted mindset, the alternative of having to bear the burden of excessive treatment expenses, leaving your family without a solid income or unable to maintain their life in the event of your passing makes the cost of premiums a small price to pay.

2. What types of insurance can you provide?

Spratt Financial Group can offer all types of risk insurance for both individuals and businesses/corporations, no matter what the size. This includes: 

• Life Insurance
• Medical/Health Insurance
• Trauma Insurance
• Income Protection and Redundancy Cover
  
• Mortgage Protection Insurance
• Key Person Insurance Cover
• Total Permanent Disablement Insurance

Spratt Financial Group can also provide a full range of fire and general insurance, including home, contents, vehicle insurance, business stock/vehicle/building insurance, pet insurance, travel insurance and liability cover.

3. I can't afford every type of insurance - which ones are most important?

For most people, it is simply unfeasible financially to have every possible form of risk insurance available. As such, it becomes a question of discerning which ones are most important for you to have. The answer to this will differ based on your personal situation and our team can discuss this with you more fully at any time if you wish. However, in most circumstances, we recommend at least a basic combination of medical insurance (to insure that any medical procedures you need are covered) and life insurance (to provide for your dependants if something should happen to you). If you have room for more in your personal budget, trauma insurance and/or income protection can provide you with good peace of mind if you were to suffer a protracted illness that renders you unable to earn a living.

4. Are there any cheaper forms of risk insurance?

If you are looking to save money on your insurance, there are certain more specific and less costly options available to you. For example, if you cannot afford a full income protection policy, redundancy cover is a cheaper alternative (although it will only cover your lost income due to being made redundant). Another less expensive option is mortgage repayment insurance, which will cover your mortgage payments if you are disabled and cannot earn an income. As you can see, these are more specific forms of insurance, but they do come with considerable savings in premiums compared to regular income protection or trauma insurance policies. 

5. Are there any other options to save money on my insurance?

Yes there are. Spratt Financial Services can offer you many avenues to save money on your insurance. Firstly, with our healthy relationship with New Zealand's top insurance providers, we can often negotiate better deals for your cover than you will find alone. Also, many people can end up paying more than they need to be for their insurance by not having the right sum assured or the right type of cover for them altogether. Our insurance brokers will take the time to find out your personal circumstances and secure the right cover for you at the lowest prices available.

6. Health Insurance: Which type of Health Cover is best?

The primary benefits of having health or medical insurance are guaranteed protection from the risk of having to pay for your own treatment, as well as obtaining the best possible care with the least amount of delay or stress. In general, for most cases, a hospital and surgical combined with a tests and specialist policy will provide you with a basic and effective level of cover. We also specialise in more specific insurance plans covering optical and dental expenses, and also routine GP visits and checkups. As to which specific plan is the best for you, there are a number of variables which our advisers are more than capable of explaining personally in a thorough and understandable way. Feel free to get in touch with us and we can talk you through the options that are best for you.

7. Health Insurance: Are there alternatives to Health Insurance?

Not really. Although it may be tempting to think that you could save the money you would normally pay into a medical insurance policy for possible future use, the levels of medical inflation means that an investment would need to grow at an unrealistic rate to keep up. Obviously there is a chance that you could go through your entire life without ever making a claim (which would be a good thing) but there's also the possibility that you need to make several significant claims.

8. Trauma Insurance: Which medical conditions will allow me to claim?

In our experience, many New Zealanders who have trauma insurance could make a substantial claim which could help their finances tremendously and are unaware that they qualify. Your trauma insurance policy will tell you exactly what claim you are entitled to and which conditions will make you eligible. For the most specific list of these conditions, please consult your policy wordings. A list of conditions could include:

Cancer (including malignant tumors), angioplasty, aortic surgery, cardiomyopathy, coronary artery bypass surgery, heart attacks, cardiac arrest, alzheimer's disease, coma, dementia, encephalitis, major head trauma, meningitis, motor neurone disease, multiple sclerosis, muscular dystrophy, stroke, paralysis and loss of functionality, loss of hearing, loss of sight, loss of speech, loss of use of limbs, advanced diabetes, liver failure, lung disease, renal failure, HIV, major burns, major transplant surgery.

If you're unsure what these conditions entail or if you qualify, you can ask us anytime and we'll be happy to help.

9. Which Insurer provides the best Health or Life Insurance policy?

The answer to this question will vary depending on your own personal needs from your insurance plan. There are a number of factors which need to be taken into account when choosing a provider. Every company is slightly different in the way that it structures its cover. For instance, some companies base their premiums on the age of the youngest adult covered, some have ‘per-child’ premiums, whilst others have a flat rate no matter how many children are covered.  Companies also differ in the way they process claims for procedures (health insurance) or in the event of the policy holder's death (life insurance). This is why the service we provide can be so beneficial to you, as our knowledge of each company is unmatched, and taking your personal situation into account, we can quickly and easily find the best insurance option for you.

10. Should I choose an excess?

Adding an excess to your policy can have practical benefits in the long run, as most companies offer a discount on the monthly premium for doing so. This saving, over time, can add up to a significant total over the course of several years. Furthermore, it is an unfortunate fact that premiums will continue to increase over time. Adding an excess is one of the options we can provide you in order to mitigate these increases, keeping your insurance costs manageable and saving you money.

11. What if I need to make a claim?

We pride ourselves in providing the best and most comprehensive claims service in the country. We know that the paperwork and procedures involved in claims can be burdensome, especially during your most stressful times. Fortunately, you can leave all your claims in our capable hands and we will get you the results you need in the quickest and easiest way possible for you. We promise that with us, your insurance claim will be as easy and stress free as possible.

12. How much will my insurance premiums increase over time?

This will depend on the choice of company, and will be taken into account in our initial consultation with you. Some have age-related premiums increasing each year, whereas others calculate premiums on five year age bands. Regardless of how often these age-related increases are applied, you can expect to receive an increase every year or so to reflect higher than expected claims (company wide rather than specific to you) or to take the rise in medical costs into account. Factors that contribute to higher claims costs include:

• Restricted access to public health care.
• New medical technology (more costly to provide).
• An aging population (with higher average claims amounts).
• Rising medical inflation (increasing consultation, treatment and equipment costs).

Increasing premiums are a necessary fact of life in terms of insurance, however we can provide several strategies in order to lessen these costs. These strategies can include adding an excess, shifting insurance providers or making policy adjustments, always ensuring your best interests are our top priority.

13. I'm applying for insurance - do I need to remember details of my medical history?

It is necessary that you can recall as much as you can of your significant medical history. The main thing when completing an application for insurance is to disclose as much as possible of any past medical treatment or consultations. Failure to do so could impact claims on your insurance policy.

14. How do I get started?

For more information on how Spratt Financial's team of insurance brokers can assist with managing your insurance programme, use our contact form here or contact us by email at enquiry@sprattfinancial.co.nz. You can also call us any time at 09 307 8200. 

Visit our official website for more information.

Finance News Round Up

1. How to become a financial superman. - NZ Herald

Some simple tips on how to improve your finances, including keeping a monthly spending diary, properly organising your bank accounts for financial efficiency and taking an honest look at your mortgage and how it can be improved.

2. Insurance Actuaries use forecasts to predict All Blacks World Cup win. - Insurance Business Online

Forecasting tools originally used for insurance are forecasting a 44.3% chance of the All Blacks winning the Rugby World Cup.

3. Hundreds of Rugby World Cup Insurance claims expected. - NZ Herald

Travel insurance company is gearing up to receive hundreds of travel insurance claims from Kiwis travelling in the UK for the World Cup. One insurance company estimated the cost at being flown back to NZ by air ambulance in case of a severe emergency to be verging on $100,000.

4. Southern Cross: Action is needed to keep insurance affordable for retirees. - Good Returns

Southern Cross has registered a $5.8 million surplus, recovering from a $1.1 million deficit last financial year. They have also come out in favour of a 25% rebate for members over 65.

5. Insurer launches new marine liability product. - Insurance Business Online 

This new product will simplify things for marina operators and ship builders/repairers by no longer forcing these businesses to buy two standalone liability policies.

6. NZ Dollar hanging in there despite doom forecasts. - Interest.co.nz

Roger J Kerr states that the NZ dollar is showing many traits of the conquering All Blacks rugby team by hanging in there against the USD despite numerous forecasts to the contrary.

Insurance Claims Statistics and Facts

Below are a collection of facts and statistics around claims and policies which may help you navigating the tricky waters of insurance:

1. 16% of Life Insurance claims are paid out early for Terminal Illness.

Some may be unaware that your life insurance can be paid out before the policy holder's death in the event that they are diagnosed with terminal illness. This happens in 16% of life insurance claims and can assist the family in making important financial decisions and quickly ease the monetary burden during this difficult time.

2. Life Cover Claim Reasons:

26% Heart Related (Cardiac Arrest, heart disease etc)
26% Cancer
12% Pneumonia
6% Stroke
2% Self Inflicted
1% Diabetes
1% Accident
11% Other
15% Unknown Causes

3. 50% of Trauma/Critical Illness Claims are due to Cancer

Heart related illness in this category accounts for 16% of claims, whilst Angioplasties and Strokes account for 5% each. Trauma cover is a separate form of cover which pays out a sum assured upon your diagnosis with a critical condition.

4. Muscular and Limb Injuries account for 47% of Income Protection Claims from one leading insurer.

5. The average age where Income Protection policies are cancelled is 46.

An extremely unfortunate fact, in light of the fact that...

6. The average age that Income Protection policies are claimed on is 47.

As we get older, we get more susceptible to injury and illness. Think carefully before making any big decisions about your insurance because being left without an income and a family depending on you can be a crippling financial burden.

Any questions about your insurance? Try out our new contact form!

Insurance Advice: Life Policy Ownership - How to Save You Stress at Claim Time

Someone you love passing away is perhaps the greatest struggle and pain that a human being can endure in this life. Unfortunately, the pain of losing a loved one can't be abated, but in our experience dealing with life insurance claims for people who have passed on, there are things people can be unaware of regarding life insurance which can lead to a prolonged and stressful claim process, leaving families waiting and stressed out in their already difficult time. This article is designed to educate, to make sure that you and your loved ones make things easier on your life insurance beneficiaries when you pass on. This can be done through adjusting policy ownership details.

To make it clearer, let me give you two examples.

John Smith has a life insurance policy, in the amount of $250,000. He is listed on the policy as the sole policy owner. When he passes on, the claims process begins. Unfortunately, the life insurance company is forced to wait for the executors of John's estate to have the will probated through the courts to determine John's desired beneficiaries and pay out the $250,000 to them. This process could take upwards of 2-3 months. Even worse, if John has no will at the time of his death, an even more complicated process ensues that will drag on even longer and could even, in the worst case scenario, see his policy benefit people he did not intend for it to!

In the second scenario, John Smith has the same life insurance policy ($250,000). In this case though, John had determined that he wished his wafe Stacey to be his beneficiary in the event of his death. In this interest, he had his wife registered as an additional policy owner. When John passed away, the insurance company immediately knew the intended beneficiary and was able to pay out within days to his wife Stacey. This avoided the lengthy probation process entirely. All it took was the consent of both John and Stacey and their signatures. The ownership details, in terms of the insurance claim, supercedes anything put into the will, allowing a quick and easy transfer of the $250,000 to his wife, supporting his family in the most quick and easy manner possible in their hardest time.

If you have life insurance and you want to make things as easy as possible, think seriously about including your intended beneficiary as a policy owner. This will ensure that in the event of your death, months of wrangling and procedures are circumvented and the money gets into the intended hands from the insurer. We have heard some real horror stories in our time, of entire estates falling into the wrong hands or families forced to give up their lifestyle due to being forced to go too long without their insurance claim after the death of the family breadwinner. We hope that knowing this helps, and as always, if you have any questions about this process or would like to know more, we're available anytime.

Visit our official website for more information.

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Is Your Current Insurance Sufficient?

After 20 years working in the Insurance industry, there is one thing about insurance of which we am absolutely convinced. Insurance works best when it is used as the funding for a plan that will protect a business, family or estate that is confronted by the disablement process. If you already have an insurance package and you want to know whether your insurance package will really be sufficient for your needs, here are the questions you should know the answers to:

What Will You Need The Cover For?

Specifically, use a pen and paper and write down what the claim proceeds will be used for when they are paid out. If you can't do this now before tragedy strikes then you may be facing trouble later.

Will You Be Able To Claim Soon Enough?

Death cover pays out in the event of actual or impending "medical death". However, we know that 94% of all deaths are due to medical conditions not accidents and 65% are due to degenerative medical conditions such as cancers, heart disease and strokes which can kill slowly over what may be an extended period of time. During this time, unable to work and unable to support yourself, your family or your business, you will be facing tremendous financial strain which your insurance may not cover for. Will the bank or your creditors wait until you are terminally ill before your death cover pays out? This is perhaps the most crucial consideration to take into account when assessing your insurance. We can help you ensure that you are fully covered financially in the face of these worrying statistics as unfortunately, basic life cover is most of the time, simply not sufficient.
 

Is It Enough Of A Claim?

It may sound strange, but a $250,000 insurance claim may not be enough to repay a $250,000 mortgage even assuming you want to repay all of it. You may have additional interest payments, penalties for being in arrears and you may need to pay a Solicitor, Trustee or your Accountant to carry out these transactions for you.

Do You Have The Right Insurance?

This applies to the type of income protection policy you may or may not have, what your health insurance actually covers or the way that permanent disability or critical illness components are structured within the overall portfolio of insurance. These two components may or may not reduce the remaining life cover once they have paid out which could create major problems at the very end of the disablement process.

Even assuming that you or someone close to you will be physically, mentally and emotionally capable of applying the claim proceeds to the predetermined targets is not supported by our experience of dealing with over 160 claims.

What is the best way of answering these questions fully? Use our experienced professional advisers to not only design and review the underlying plan, but to execute it and carry out the tasks they are best suited to handle. If you don't have a plan now, prepared with clear-headed purpose, then any insurance you do have may well be insufficient or not adequately fit to your unique needs. Use our experienced professionals if you need guidance or advice.

For more information on how our team of advisors can assist with managing your insurance program, contact us by calling 09 307 8200 or by email at enquiry@sprattfinancial.co.nz.

Visit our official website for more information.

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