Attraction and Retention - Solving An Employer Challenge for 2022

Small and Medium Sized Businesses (SME’s) are the lifeblood of the New Zealand economy, with over 470,000 SME’s employing over 584,000 staff. Much has been made recently of the staff shortages NZ businesses are experiencing,  and the predicted “great resignation’’ once the borders open after prolonged closure. In a tight labour market, employers are always looking for new ways to attract and retain talent. A recent global wellbeing survey indicated that 82% of organisations believe wellbeing is important within their company. However, 'wellbeing' can have can have different meanings to different people.

Two meanings that are universally accepted in relation to it are Health Wellbeing, and Financial  Wellbeing.  Employers can provide this wellbeing via “Employee" insurance programs that provide staff with Health insurance benefits so they can getter better, and back to work faster, and insurance benefits that pay cash to staff should they suffer a major illness or disability, relieving financial worry and stress. 

Employee or “Group” insurance places value on employees’ wellbeing and shows that their employers genuinely care about them. If you are an employer with at least 5 employees, it’s a fantastic gesture to build loyalty, retain staff and reward them for their hard work. These plans also have the valuable advantage of providing a higher level of coverage, and at a much lower premium cost than an individual employee could access themselves.
 
A recent report by the Financial Services Council of New Zealand shows that “Group" insurance for employees is one of the fastest growing sectors of the insurance industry. This is because more and more employers realise the value it holds for employees from internationally mobile staff through to blue collar workers, and what great value it represents on ROI per dollar spent (cost is usually well below 1% of remuneration expenditure). Group medical insurance schemes are also available and are generally an exceptional and cost-effective option that gives your employees medical cover at lower costs than they could access themselves.
 
To find out more, or to receive a free no obligation consultation or quote you can contact our resident expert,  Peter Wilkening of Spratt Corporate Employee Benefits for a chat.

Read More about Employee Group Schemes here.
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Breaking News: Insurance/Investments/Home Loans

1. Insurance Council rejects criticism over Kaikoura Earthquake claims. - Radio NZ

The Insurance Council is defending the industry against claims that some commercial claims are taking too long in Kaikoura following the latest devastating earthquakes.

2. Wedding Insurance now available to Kiwis at home or abroad. - Stuff.co.nz

New Zealand's first specific insurance designed to cover wedding festivities has been launched, and it also covers Kiwis choosing to have their big day overseas.

3. Kaikoura Earthquakes the seventh most costly event covered by insurers in 2016. - Interest.co.nz

The total amount of damage caused by the quakes is estimated at $4.5 billion NZD, of which 60% is expected to be covered by some form of insurance.

4. Why rich Americans see NZ as a haven. - NZ Herald

A new wave of wealthy Americans sees NZ as an attractive option, isolated enough from the perceived and real turmoils of their home nation and offering a more positive environment and lifestyle. 

5. Auckland falls to world's fourth least livable city. - NZ Herald

Citing moderate pay and ever increasing cost of living and house prices, Auckland is now ranked behind only Hong Kong, Sydney and Vancouver among world cities.

6. New Zealand Home Loans Survey reveals household's most disastrous spending habits. - Stuff.co.nz

Particular habits of overspending are contributing to a major impact on households ability to service their home loan debt.

7. Double Interest rate blow to Kiwibank mortgage holders. - NZ Herald

Kiwiblank cites funding costs as the reason behind increasing mortgage rates twice already in the first month of 2017.

www.sprattfinancial.co.nz

Spratt Financial Newsletter - October 2016

Check out our newest Spratt Financial Newsletter, including special events clauses in your insurance which may make changes to your insurance far easier and how to be debt free quicker.

Free Government Top Up for your Kiwisaver

Top Up Your Kiwisaver Now!

$$$ Government Gift of $521.43
(Subject to Kiwisaver contribution)

Just a reminder that if you have a personal Kiwisaver scheme, the cutoff for annual contributions is fast approaching. If you have been contributing to your Kiwisaver this year, you could qualify for a free government gift of $521.43

You need to have contributed a minimum of $1042.86 within the 12 months ending 30th June 2016 to qualify for the free Government top-up of $521.43 (member tax credits).

If you have over $50,000 in your Kiwisaver and are not getting professional advice then feel free to contact our professional investment adviser Jonathan Parsons for a no cost financial checkup. The coffee is on us.

Jonathan Parsons

jonathan.parsons@sprattfinancial.co.nz

Southern Cross to launch new health insurance for young people.

Some good news, following on the heels of our recent article on the benefits of getting insured while you're young: Southern Cross has announced the release of a new health insurance product for young people. Named the 'Wellbeing Starter' plan, it is an entry level plan based on extensive market research of 1,500 young adults and what they described their needs of a health insurance plan to be.

One of the main needs described was affordability, and Wellbeing Starter achieves this by excluding all coverage for orthopaedics, urology and gynaecology (unless these aspects are required for the treatment of cancers). Southern Cross state directly that this may not be the best plan once clients reach middle age, but its a great option while they're young and covers what young people deemed to be most important to them.

The Wellbeing Starter plan's benefits include $500,000 surgical cover, $100,000 cardiac cover, $60,000 cover for cancer treatments, including an additional $10,000 for non-Pharmac drugs. It also includes a  $40,000 prophylactic treatment allowance, $3000 for skin surgery. The plan will also cover 75% of GP and physio visits (up to $150), in response to the research which discovered that an everyday benefit was important for young people to have.

As more insurers become serious about reaching out to young people, the benefits of getting insured young will only increase. This is definitely a positive development in that regard, If you'd like to enquire about getting your health insured, you can request a free, no obligation quote at anytime. We may be able to secure you an even better deal on your premiums than you would find yourself.

Visit our official website for more information.

Visit the official Southern Cross website here.

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Insurance: Why you should get in while you're young.

Among the concerns of life, insurance tends to only come onto our radar when we enter the middle stages of our life. In our middle age, our career is bedded down, perhaps a few health issues are beginning to crop up and getting married and having children redirects our priorities to people in our lives we should financially provide for. But is this too late? Whilst it seems natural in a sense to put off paying for insurance during our younger, formative years, there are actually many good reasons to look at getting insured early.

1. It's vital to get in early with Medical Insurance.

 From personal experience, I could have been in a world of trouble if I didn't have medical insurance by the age of 20. Just after my 21st birthday, I was diagnosed with Crohn's Disease, and since then my medical insurance has saved me close to $20,000 in medical costs that I may have had to pay out of my own pocket. Better yet, since I secured my medical insurance while I was healthy, I had no exemptions and paid normal cheaper rates. If there's one form of insurance you get while you're young, it should definitely be medical insurance. If you leave it too late, you may be unable to get pre-existing conditions covered, or you could pay much more than you need to for both medical treatment and premiums.

You never know what could happen with your health - secure medical insurance early in life.

2. Your health status determines how much you pay.

A great reason to think about life insurance and trauma insurance cover earlier in life is that your insurance policy will be determined by your current state of health. The premiums that you pay reflect your level of risk to the insurer, so if you are young and in good health, you will pay far less than you will if you're older and more infirm. If your health deteriorates too much, you may not be able to get insurance at all. It could be a good idea for you to protect your future dependants now, and not take the chance of your health deteriorating.

Having to pay insurance costs is unappealing when you're young - but it could save you more than you can imagine. Be sure to weigh the costs and benefits to your situation carefully.

3. You'll be covered for any conditions that develop - no exemptions.

If you have any existing serious medical conditions when you secure insurance, there's a good chance you'll either pay a hefty fee to have them covered or the insurer won't cover them at all. If you get in while you're young and in peak health, you can rest assured that anything that develops will be covered AND you won't be paying any extra for it. If I had only got medical insurance after being diagnosed with Crohn's, I could be paying double or triple what I'm paying for premiums or I may have been unable to get cover and had to foot the bill myself. That's not what you want. 

If your medical history is spotless - your policy exemptions will be too.

If you have the ability, Spratt Financial highly recommends the benefits of thinking about securing personal insurance as young as possible. You'll save money, you'll have peace of mind and you won't have to take a chance on your health staying good. If I had taken that chance, I would have gambled and lost. Spratt Financial Group can get you the insurance you need at lower prices than you'll find for yourself, and our services are completely free and no obligation. Drop us a line today for a free review of your insurance needs.

Request a quote on your insurance today!

Visit our official website for more information.

How to improve your mortgage situation.

Is your current bank offering you the best interest rates or cash contributions?

People are using mortgage brokers more than ever before and for some very good reasons. Whether it’s for a refinance of your existing home loan, a new purchase or looking for a way to get debt free faster, a mortgage broker can save you time and money by shopping around for the best deals – and at no cost to you. Currently interest rates are at record lows and could possibly fall further – but are you getting the benefits? 

Also we always suggest you need a simple plan to pay off debt at a reasonable rate, achieve your personal goals and protect your lifestyle. In the business world, a study in 2010 showed that those who completed business plans were nearly twice as likely to successfully grow their businesses or obtain capital as those who didn’t write a plan http://smallbiztrends.com/2010/06/business-plan-success-twice-as-likely.html. 

The choice at the end of the day financially is either do it all yourself or seek help from a specialist broker who can help you plan and add value. Our services to you in this regard are completely free and no-obligation. This means that you have absolutely nothing to lose! 

What we can do for you:

• Re-finance your mortgage at terms that work better for your current situation.
• Help build a plan to pay off your mortgage quicker and achieve your financial goals.
• Obtain a new home loan at the best possible terms.
• Suggest debt reduction strategies and get the burden of debt off your back.

Need help with your mortgage? Let us know.

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Financial News (July 2015)

1. Dunedin flood insurance bill found to be $28 million. - Radio NZ News

When South Dunedin experienced 3 months worth of rain in a single day, the damage was extensive. There were 2,000 domestic claims and 170 claims for damaged vehicles with claims totalling $28 million.

2. Westpac loosens apartment lending rules. - Good Returns

Changes have been made to make things easier for borrowers and first home buyers, by increasing the LVR maximum from 80% to 85% with certain conditions and limitations.

3. Options discussed to improve Kiwisaver. - Good Returns

Options are being discussed at a workshop on IRD's annual kiwisaver day on August 10th. Many proposed initiatives include better education for the general public about the key positive features of kiwisaver  as well as ensuring savers are in the most beneficial choice of fund.

4. Advice: Being vigilant about financial abuse. - Fisher Funds (NZ Herald)

Financial abuse can happen, from both untrustworthy advisers and fund managers as well as from members of one's own family. People are urged to be vigilant about who they trust with their money and look out for members of their own family when they make big financial decisions.

5. Expert: Financial skills among the general public prove to be poor. - NZ Herald

Whilst most people are good at looking after their money on a daily basis, they tend to make poor decisions for their future, according to a financial advice expert.

6. Kiwis see economic issues as the biggest problem for NZ. - Scoop.co.nz

44% of surveyed New Zealanders declared economic issues as the biggest problem facing the country. A growing 14% of Kiwis also view the housing shortage as the greatest concern (up 4% from March 2015 figures).

7. Auckland housing market 'continues to go mad' - NZ Herald

In the wake of Labour's controversial release of housing data highlighting the possible impact of foreign investors, Auckland's property market continues to increase 10 times faster than the remainder of the country according to the most recently released data.

For Insurance, Investment and Lending Service visit our official website here.

Staying Healthy: The Health Benefits of Sleep

Our staying healthy series aims to give you helpful tips and advice to keep you in tip-top shape, because staying healthy is an insurance policy all of its own. In previous additions we have discussed how to reduce stomach fat, general weight loss tips and if chocolate can help prevent obesity and diabetes. In this installment, most people already know that we need sleep. But sleep (and the right amount of sleep) has even more practical benefits to your health than you think.

1. Improving Memory.

Sleep is crucial to processing and consolidating information in your mind, which is why a good night's sleep before a test or exam is often a far better idea than burning the midnight oil studying. Studies have shown that if you're trying to learn something, a good night's sleep is crucial to keeping your precise mental functioning intact.

2. Improving weight issues.

Research conducted by the University of Chicago found that subjects that were well rested lost considerably more fat whilst on a diet than subjects that were sleep-deprived. The subjects in the first category lost approximately 56% than the sleep-deprived group. The same areas of the brain are responsible for both sleep and metabolism, so good sleep can help maintain a healthy and not excessive appetite.

3. Sleep can reduce stress.

Sleep refreshes your mental processes and regulates the level of hormones in your body, both of which can become askew through considerable stress during a hard day. It also provides better control of your blood pressure. Health experts recommend attempting to get into a routine of going to sleep and awakening at around the same time each night, whilst giving yourself some wiggle room for a late night or two every once in a while. If you are over-stressed, do your utmost to get yourself a good night's sleep.

4. Sleep lowers your risk of heart disease and diabetes.

A somewhat shocking study investigated the effects of disturbing the sleep patterns of 10 previously healthy young adults with shift work. After only four days, three out of 10 had blood glucose levels that would qualify them as pre-diabetic. Many other studies have testified to good sleep lowering the risk of heart disease and heart attacks over the long term.

5. Improving reaction times/preventing accidents.

A bad night's sleep or, even worse, no sleep at all, is the equivalent of one or more alcoholic beverages in terms of its impact on your driving. Lack of sleep means that your reaction times are slowed and your decision making is impaired. In the Unites States, the National Highway Traffic Safety Adminstration found in 2009 that tiredness accounted for the highest proportion of fatal single car crashes, even higher than alcohol. For the safety of yourself and other road users (as well as avoiding vehicle insurance problems) a good night's sleep is essential.

Sleep affects almost every tissue in your bodies, including hormones, your immune system, your appetite, blood pressure and the health of your heart. A good sleep schedule maintained well is crucial for your functioning, and will definitely help you in staying healthy.

The hidden benefits in your life insurance policy.

Many of us have insurance policies, but not many of us know just how much we can get out of the policies we already have. What many people do not know is that there may be clauses in your policy that allow you to react to changes in your life to become better protected than you are. Having to make changes to your cover or getting new insurance entirely can be an onerous procedure. It can be more than a bit of a chore having to fill out application forms and go and have blood and medical tests.

Even so, there are times when making changes to your insurance is necessary and extremely beneficial. For instance, to cover an increase in borrowing for your business, doing renovations, taking out a home loan or covering a new addition to your family. Changes can be necessary sometimes, but the hoops you have to jump through to make them can often deter people from making them. But if you didn’t have to go through all the forms, paperwork and medical screenings, it could be a lot more tolerable.

Excessive forms and screenings do not have to be an obstacle to changing your life cover.

The good news is that in your current life policy there very well could be built in guarantees that allow you to increase your cover by certain amounts, without having to supply current medical information, in the event of specified events such as:

·         Having a child (by birth or legal adoption).

·         Becoming married or entering into a civil union.

·         Becoming divorced or the dissolution of a civil union.

·         Financially supporting a dependent child through a first course of full-time tertiary education.

·         Taking out or increasing a home loan.

·         Becoming responsible for the full-time care or payment for long-term care of a close relative;

·         The death of a spouse or partner.

·         Significant salary increase of 10% or more, at least $20,000.

If you have gone through any of these changes recently, then updating your insurance coverage might be an easy task, as well as a necessary one. Take a close look at your policy wordings or give us a call any time, and we can have a look at your existing policies and give you a summary of what you can do to get the most out of your insurance.

Use our contact form and send us an enquiry.

Visit our official website for more information.

Common Insurance Mistakes to Avoid (Part Two)

Read Part One here.

4. Be aware of pre-existing health conditions.

If you have to cancel your health insurance, please be cautious about any medical conditions that you have developed while your policy was in force. If you need to transfer providers or get insurance at another time in the future, those medical issues become 'pre-existing conditions'. Having a pre-existing condition, depending on its severity, could mean much higher premiums or in the worst case scenario, it could prohibit you from being covered at all. Make sure you bear this in mind and ask a professional before cancelling your policy or before buying your first insurance. Many people have unfortunately let their policy lapse or cancel it entirely, believing that they will be able to re-acquire the same cover at the same prices at another time if they need to. This may not the case.

5. Make honest and full disclosures on your application.

Insurance providers are nothing if not thorough. Lying or omitting information on your application in hopes of getting a better deal on your premiums or thinking that some information is unimportant could have dire consequences. When you have to claim on your policy, the insurance provider can legally deny you your claim if you have found to have misrepresented or omitted information. For instance, if you have a pre-existing medical condition or injury and you fail to provide details on the application forms, the provider could very well not pay out your claim. Similarly, if you check non-smoker on the application and it is later discovered that you smoke, your claim could be reduced or cancelled to make up for the increased premiums you would have been paying if you had made full disclosure. The bottom line is that it is far better to be safe than sorry. Make all necessary disclosures, be truthful and if you're at all unsure about anything, ask a professional adviser for a consultation before proceeding.

6. Don't leave it too late.

When we are young, often purchasing insurance is the last thing on our minds. We're young, healthy, full of life and at very low risk of needing our lives, our health or our debts covered. Ironically, the time when we perhaps least need insurance is the time we should be thinking about buying it the most. If we leave it too long, until we are older, we are also going to have more pre-existing conditions and have to pay higher and higher premiums. In my personal experience, I was lucky enough to have a medical policy before I was diagnosed with Crohn's Disease in my early twenties. If I had left it longer, I would have had to pay over $30,000 of medical costs out of my own pocket. Think about getting your life and your health covered before you need it. It will benefit you in the long run.

7. Review your policies regularly.

Spratt Financial reviews our clients' insurance policies on a yearly basis for a very good reason. Things can change, both in your life and in the insurance marketplace. It is likely that you will be in a different financial situation with different needs a year from today, and it is essential that your insurance plan covers those current needs. Basic life cover with a sum assured of $50,000 may work when you're 20 with no dependants, but it won't be enough after your first child comes along or after you and your partner secure a mortgage. Review regularly, and make sure your cover fits your current circumstance.

Read Part One Here.

Got a question? Need a free review? Ask our team of professionals through our contact form.

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Common Insurance Mistakes to Avoid (Part One)

Buying insurance can sometimes be a much more difficult thing that we want it to be. Unfortunately, if you really want to cover the bases and make sure your insurance works the way you need it to, there are some things you need to be aware of. This article will list out some common mistakes people make when buying their insurance and how best to avoid them.

1. Don't rely on assumptions.

One of the most important considerations when looking for insurance is just how much cover you need. When looking at this, there are some things you can very easily overlook. For a life, total permanent disability or trauma insurance policy a sum assured that only covers your existing debt or that is just an arbitrary figure may not be enough. Factors such as inflation, growing cost of living, interest and more need to be considered thoroughly otherwise yourself or your beneficiaries may end up with a payout that isn't enough to support them in their most difficult time. For disability and long term insurance, the situation is even more complicated and very difficult to work out just how much money your beneficiaries would need. This is where talking to an adviser before you get your insurance becomes essential. You will most often need more than your current income to maintain your current living conditions in the future so don't make assumptions of how much you'll need.

2. Cheaper is not always better.

Often the primary consideration when choosing insurance is the cost of premiums. Understandably, people are extremely motivated to pick the policy with the cheapest monthly premium but in the insurance industry, this can be a dangerous choice. For example, as a rule in general for health insurance, the higher your premiums the less you will be paying when you have to claim for healthcare. The company's reputation and amount of coverage you'll get also needs to be thought about carefully. If you're going to encounter problems at claim time, your savings in premiums are going to pale in comparison to the consequences if you won't get paid out in full. A qualified adviser can inform you of the differences between insurance providers and it's something that definitely needs to be taken into account.

3. Not knowing what is covered.

Make sure that you don't gloss over the details of what specifically is covered by your insurance. For health insurance, policies can cover GP visits, surgical costs, dentistry and optical. Your policy can cover one, all or a combination of them. General insurance policies such as home or contents insurance can cover certain events, but it can also not cover them, leaving you in a costly hole if certain circumstances should ever come to pass. Not knowing exactly what's covered beforehand is a bad mistake and could cost you hugely in the long run, so either ask an agent or go over your policy fine print thoroughly before making any decisions.

Read Part Two here.

Got a question? Ask our team of professionals through our contact form.

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Timelapse of the Giant Poppy Project - Video

Further to our previous post on the Giant Poppy in Auckland Domain for ANZAC Day, here is an amazing timelapse video of the poppy being assembled and filled in over time with thousands of messages of support and remembrance from New Zealanders.

Click here to see the video now.

Remember that the Poppy is available to view until tomorrow, so if you haven't done so, we highly recommend you get down and see it for yourself. Definitely a great project and one that Spratt Financial Group is proud to have supported.

North Harbour Rugby Referees

Spratt Financial Group is proud to announce our status as a premier sponsor of North Harbour Rugby Referees. The association does a great job with fostering the growth and development of our national game, and play a great role in helping charities and communities throughout the North Harbour region. To say we're proud to be a part of it is an understatement.

We look forward to giving you the best in insurance and investment service, to make sure your future and your finances are secure, come what may. Both Allan Mearns and John Dooley, two leading professionals on the Spratt Financial Team, are volunteer referees and so we know first hand the great job the NHRRA does.

We invite you to take a look at our Referees welcome page to see how we may be of service to you.

Visit the Spratt Financial Group welcome page.

Visit the official North Harbour Rugby referees website.