Study: New Zealanders heavily under insured.

 "A two-year Massey University study has shown New Zealanders are under-insured by $650 billion.

Lives were under-insured by $195.609 billion, permanent disability protection was lacking by $351.827 billion and income protection was under insured by $2.966 billion per month.

About 2000 respondents filled out an online survey that asked questions about their insurance cover, perceived needs and their reasons for not having more insurance.The research found most New Zealand families had high levels of vulnerability to medium or long-term disability as a result of underinsurance. 

FSC chief executive Peter Neilson said the research highlighted serious financial risks
More than half the respondents said they were suspicious of insurance companies and 43% found insurance jargon difficult. About 60% thought finding personal risk insurance was too hard.

Particularly among younger respondents, there was a view that it was too difficult to know what level of insurance was needed.

Others thought Government assistance would cover them in the event of an accident or illness that kept them off work.

But almost half said having the right level of cover was important to them."

- Taken from an article by Susan Edmunds (Original Article Here)

This article made the news quite a bit last week, and for good reason. The numbers themselves ($650 billion in total! That is nine times the entire national debt as of 25/2/2013!) reflect a profound disconnect between New Zealanders and their insurance needs. The survey itself shows that a lack of knowledge and the demands of finding insurance is a critical factor in so many New Zealanders being under insured.

We are glad this issue is getting some national exposure, because it highlights what we have been seeing internally for some time; that when things go wrong, the real financial needs of people are not managed due to inadequate cover and they find themselves in dire straits that could have been avoided.

Our business specialises in taking the difficulty out of securing insurance that actually meets your real life needs and doesn't leave you under insured or bearing unreasonable costs. If you are one of those 60% who are finding insurance difficult to attain, we have the experience to take the stress out of your hands and make sure you are not one of these unfortunate statistics, and that you have financial peace of mind if tragedy strikes.

Make an enquiry about your insurance needs today.

Visit our website for more information.

Health Insurance FAQ

Here are the questions we have heard most often over the years regarding health insurance (aka medical insurance). Look for future FAQs to deal with questions about other forms of cover.
 

Do I Really Need 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 is by taking out health and medical insurance. Although cover may seem unnecessary from a short sighted mindset, the alternative of having to bear the burden of excessive treatment expenses can make the cost of premiums a small price to pay in the long run. Not having it is taking a chance. From my own personal point of view, having health cover has spared me over $20,000 in costs after I was unexpectedly diagnosed with Crohn's Disease. Before that, I was completely healthy with no real health issues. It can happen, and it can ruin lives. Make an informed decision.
 

Which type of Health Cover is best for me?

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 hospitalisation 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, it will depend on personal factors in your life. Do some research, or get in contact and our advisers can take you through the options completely free and with no obligation.
 

Which company has the best Health 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 when insuring your family, 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. In general though, both Southern Cross's VIP Plans and Sovereign Assurance's Majorcare can be relied upon as excellent options.
 

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. In general, an excess of some sort is generally a good idea.
 

How much can I claim?
Your policy will have a ceiling amount that you can claim per operation or procedure, and these amounts are variable based on the type of cover and the company providing the insurance plan. These limits are designed to be high, in order to accommodate almost every possible medical scenario.  

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.

Are there alternatives to Medical Cover?

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, even one of which could be crippling to your financial prosperity to pay out of your own pocket. So unless you have significant savings, medical insurance is almost essential.

How much will my premiums increase annually?

Again this will depend on the choice of company. 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.

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.

If you have any questions regarding your insurance, feel free to post a comment below or get in contact with us, we'd be happy to help.

Email us today for help with your insurance.

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Insurance: Why cheaper is not always better

Sometimes when selecting their insurance, people are inclined to gravitate immediately to the cheapest possible option. Cheaper is better right? Well, we definitely understand the desire to have more money in pocket, but in the insurance market, the best way to accomplish this may not actually be to dive straight in to the cheapest cover. What is crucial to know is that whilst insurance premium costs can sometimes be daunting, there are factors that are often neglected that can dwarf these costs in the long run. Unfortunately, when it comes to insurance, cheaper is definitely not always better.

One of the most important factors we look at when we seek out a policy for a client is how the insurer will perform at claim time. If a policy is cheap but the insurer will throw up obstacles when it comes time to claim on your policy, the cost both financially and emotionally can be immense. Our advice does take cost into consideration and always attempts to secure our clients the best possible deal, but from a larger and more beneficial perspective. We know that you don't want to be fighting battles with your insurer during your most stressful times, and even more crucially, we know that when things go wrong in your life, you need assurance that you will be supported financially promptly and with the minimum of concern.

Some insurers also can be more trying than others in their requirements for not only claims, but aspects such as policy alteration, changing direct debits, increasing, adding cover or underwriting. Your insurance needs to work for you, and do its job to cover your financial assets in the event of medical issues or permanent disablement, and sometimes it is worth spending a few extra dollars to secure the best possible service in all aspects.

With a bit of searching, research and a bit of professional advice, you can get insurance that's both effective and affordable. It just takes some time and a bit of inside help. We're happy to be that help. If you have any questions or concerns about what you're getting from your insurance let us know.

Email us today.

Visit our company website for more information.

Welcome to the Spratt Financial Services Blog

Welcome to the official blog of Spratt Financial Services. We specialise in Insurance, Investment and Lending solutions for New Zealanders. We have a team of trained professional advisors here to guide you towards financial security and prosperity. We have locations in the CBD of Auckland City and Christchurch, giving us a base to provide our services across the length and breadth of New Zealand.

This blog will keep you regularly updated with news and advice from the world of insurance and finance. Not only that, but we will be featuring articles, news, current events and less serious posts we hope you find interesting and thought provoking.

A recent study showed that 60% of surveyed New Zealanders find the prospect of securing insurance daunting. Our aim is to make it easier. Not just that, but we aim to get you the best possible results from your insurance at the best possible prices. With our support and our team on hand, we can help you get there and we hope our blog archives and information will help too.

Feel free at any time to post a comment or get in contact, and our team of professional advisors will be at your disposal to give you the answers you're looking for. Also, check out our official website for more detailed information on the practical solutions we can offer.

Popular Articles from our Archives:

Frequently asked Health Insurance questions.

Critical Illness Statistics: What are the chances of suffering a serious illness?

How to place your Southern Cross Health Insurance on hold while overseas.

Controversy about higher life insurance premiums for depression.

Staying Healthy: Weight Loss Tips.

Five Sticky Situations that insurance could bail you out of.