The Benefits of Using an Insurance Broker

1. Insurance Mistakes Can be Costly.

While we can sometimes think of insurance as being a simple matter, it can no doubt be a complicated prospect and the costs of getting things wrong can be high. If you don't have the right amount of cover you could be left unable to service your debt if something goes wrong, or people who depend on you could end up in trouble or out of pocket. In our years of professional experience, we've come across people who've filled out forms incorrectly, chosen the wrong type of insurance entirely, or overlooked a crucial detail, leaving them in a much worse situation when they need their claims.

Nearly all of these mistakes could have been avoided by consulting with a professional adviser. Insurance brokers take the time to assess what you really need and guide you through the process, eliminating unneeded costs, getting you the right insurance, making sure your real needs are covered and getting those forms 100% correct every time.

2. Your Claims Processed Stress Free

If you need to make a claim on your insurance, chances are you are going through one of the most stressful times of your life. During this time, processing claims, filling out forms and making sure everything is squared away is a true hassle, and one that you really can't afford to get wrong. Our Insurance service includes full claims management and support, helping you fill out forms correctly, guiding you every step of the way and making sure you get your claim processed as you need it every single time.

You don't need any more stress in your life, and making the choice to use an insurance broker to source your cover will take this claims stress out of your hands.

3. The Insurance Marketplace Can Change

The insurance market in New Zealand is ever-changing. New products and providers come and go, and the best insurance for your situation one year could be very different to the best insurance for you the next year. An insurance broker will conduct regular reviews of your insurance to make sure that what you're getting is still the best deal for you. If it is found that it's not, you'll be able to change to continue to get the best cover at the lowest prices. The best way to keep on top of the market and always get the best is to have a professional insurance broker in your service.

4. Zero Cost and Zero Obligation.

All the service that an insurance broker provides for you, from giving advice to sourcing your insurance, to conducting reviews and providing ongoing support, is entirely 100% cost free. All you pay for is your insurance premiums. Your insurance broker is paid by the insurance companies themselves at no additional cost to you, so you have nothing to lose by consulting one.

5. Better Deals Than Going It Alone   

In many cases, a reputable insurance broker can leverage their solid relationships with New Zealand's insurance providers to secure you better terms and/or better rates than you could find by going it alone. A broker can also get you indirect savings in cutting out aspects or benefits that you don't need and setting your sums assured at the level you need and not too far in excess of it. When combined with all the other benefits, we believe that taking the time to consult with an insurance broker is a no-brainer.

6. The Knowledge and Experience You Need

Our insurance team has over 100 years of combined experience in the insurance field. That's over a century's worth of knowledge and experience that they bring to help clients get the best and deal with anything that could arise. That knowledge is simply invaluable in crafting your insurance policy, maintaining it and making sure that it works the way it needs to and only the way it needs to. Alone, you could be at risk but with 100 years of experience behind you, you will be secure.

Visit our official website for more information.

Meet our professional team.

Send us an enquiry or request a quote today.

Why You Need an Insurance Plan

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 do you really need the Insurance 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. Also, 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 policy 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 our professional team and we can help you determine the amount you need.

4. Do you know the right type of Insurance you need?

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 Spratt Financial Services - 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 unwarranted 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 hundreds of 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 wholeheartedly that you use our experienced professional advisers to not only design and review your underlying insurance 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 - our service is completely free and no obligation, so you have nothing to lose!

Contact our team for a free, no obligation chat today.

Send us a message on Facebook.
Drop us a line via Twitter.

Tips to save money on your insurance. #1

The experienced insurance team at Spratt Financial Services has a number of tips to help you save money on your insurance, whether you have existing policies or you're looking to get insured:

1. Make sure your sum assured is not unnecessarily high.

Selecting the amount of insurance you need is one of the most crucial areas that people need to spend more time considering. It can often be too tempting to just pick a round figure that you assume is correct for your needs and go with it. When we give advice to new clients, we take the time in helping them go through their debts, their needs and what exactly they need provided for. Let's say you discover that you need $150,000 of life cover to adequately cover your debts. By doing this instead of blindly selecting say $200,000, you've instantly saved a considerable amount on premiums. Picking the amount that you need and then revising it as necessary as changes in your life occur is one of the best ways to be sure you're not spending too much on your insurance.

Not sure where to start? Ask us for a free and no obligation insurance review today.

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.

What is Whole of Life Insurance?

Much like a regular term life insurance policy, a Whole of Life policy is designed to provide a sum of money (the sum assured) to someone else or to a trust upon your death. It provides an increasing level of cover which gradually builds up a cash value through to a chosen maturity date as premiums are paid. Whole of life cover is the only form of life insurance that can be paid out whilst the policy holder is still alive, if they survive past the agreed upon maturity date of the policy.

Also, whereas a term life policy covers you for a certain period of time (for instance, until the age of 65 or for a certain amount of years after you take out your policy), whole of life insurance covers you for your entire life. As such, it is generally a lot more expensive than regular term cover and has become less and less prevalent in the NZ insurance market over time. Today, few insurers here offer whole of life cover, but many policies taken out in the past are still in force and active across the country.

Whole of Life insurance is also different from other forms in that it can have aspects which function as an investment. For some whole of life policies, premiums paid are invested into a fund and can be refunded to the policy holder if performance is greater than expected. Sometimes, premiums are expected to be paid for the entire life of the policy (as long as the policy holder lives) and in other cases, the premiums cease at a certain age although the cover goes on until death. This is established when the policy is taken out, as well as the sum assured and the fixed premiums.

Whilst few providers offer whole of life policies in New Zealand these days, if you have one that is currently active and you have any questions about your policy, you can use our website's contact form to get a reply quickly and easily at anytime.

New Zealand Insurer Brings back Full Replacement cover for houses.

Tower Insurance has gone against the prevailing wind of house insurers to offer a full replacement option for houses destroyed by fire. Most insurers in the industry moved to a sum assured model at the beginning of 2013, meaning that they would pay out an agreed upon value (the sum assured) if the house was damaged or destroyed by fire. The sum assured model often sometimes not provide sufficient funds to totally replace the value of the house, just going most of the way.

“Being able to provide full replacement for fire means one less worry for homeowners in the traumatic event of a fire,” Tower CEO David Hancock said. “Tower can guarantee your home will be fully rebuilt if it’s destroyed by fire, regardless of the cost or the sum you’re insured for.”

Providing a full replacement option should set Tower apart in the fire and general insurance marketplace and give customers another option for covering their houses which is always a good thing. Tower says that they made the move to bring back full replacement in light of comments from their customers who found the sum assured format confusing. “People want to know that if the worst happened they can at least know that they will get their house back the way it was.”

If Tower's move proves successful, and they can maintain affordability, it will be interesting to see if other insurers follow suit. What do you think of Tower's move? Do you find the current home insurance confusing? Would you rather go with a full replacement option?

Visit our house insurance partners.

Send an enquiry about home insurance.

Insurance Mythbusters: "My sum assured need only cover my debt".

It's that time again! Time to bust (or confirm) some more myths!

When it comes time to set the sum assured (definition here) for their insurance policy, be it life cover, trauma or Total Permanent Disablement, people without advice tend to assume that as long as the sum assured covers their debt (mortgage, credit cards, car payments, medical expenses etc.) then that's enough.

For instance, someone with $200,000 left to pay on their mortgage and $20,000 left to pay on their car may decide that they only need to be insured for $220,000. After all, being insured for more means higher monthly premiums and why take on the extra cost for something that isn't necessary?

Except in most cases, it is necessary.

Make sure your insurance sum assured is calculated properly, with the aid of a qualified adviser or broker., not with the aid of an abacus!

A $220,000 debt most of the time will not be covered by a $220,000 payment, as there are other factors and expenses to consider. Legal fees, interest costs, the cost of a financial adviser, bank fees and taxes and more all may need to be taken into account. So to make sure you don't leave any debt behind to your beneficiaries, it is generally necessary for your sum assured to cover the sum total of your debt and then some. How much will depend on your unique circumstances, but if you're in doubt, ask a professional.

VERDICT: This one is definitely busted. Just calculating your sum assured to erase debt may leave more costs on yourself or your beneficiaries during stressful times when they can't afford it. Make sure that all potential costs are considered, taken into account, and if at all possible, leave yourself with room to play by expanding your sum assured as much as is possible and affordable.