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.

Visit our official website.

Follow our Twitter feed @SprattFinancial.

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.

Visit our official website.

Follow our Twitter feed @SprattFinancial.

Breaking News (May 2015)

1. Tower Insurance makes a game out of safe driving. - Stuff.co.nz

With their new smartphone app, families finally have a way to settle all those arguments about who among them is the better/safer driver. Good feedback and points are accumulated for safe braking, smooth acceleration, good cornering and driving at safe speeds under the speed limit. Once every journey is complete, the app gives your score as well as feedback on how to improve next time. This has led 74% of drivers to improve their scores over time.

2. NIB launches new travel insurance. - Scoop.co.nz

NIB is partnering with global travel insurance provider World Nomad Group to offer travel insurance to Kiwis along with their current health and medical insurance business. This marks NIB's continued expansion in the NZ marketplace after purchasing TOWER medical in 2012.

3. Rise in amount of Insurance and Superannuation Jobs available. - Scoop.co.nz

The latest data from SEEK has revealed a month to month jump of 40% in the amount of insurance and superannuation jobs available, much of the growth coming from Auckland and Canterbury.

4. Health Insurance Claims hit $1 billion for the year. - Good Returns

The milestone was reached in the March quarter with insurance funded healthcare in NZ passing $1,000 million. The number of policy holders over the age of 65 continued to grow with the number reaching 150,000 in March.

5. NZ Government asking for everyday Kiwis flag suggestions - Standfor.co.nz

Submissions for new flag designs and what we stand for are being requested by the NZ government. What do you stand for?

6. Health: Study links long car commutes to weight gain. - NZ Herald

People who have changed from their routine of driving to work to walking, cycling or using public transportation lost significant amounts of weight. The research was led by the University of East Anglia in the UK. The longer the commute, the more the weight loss as commutes over 10 minutes leading to a loss of 2kg and a huge 7kg on average for journeys of more than 30 minutes.

7. Opinion: Is Auckland a housing bubble and will it burst? - NZ Herald

Every month we read news about soaring Auckland house prices, with the figures just becoming more and more bloated and out of reach of everyday Kiwis. Is this a permanent trend or a housing bubble that is set to burst?

Visit us at www.sprattfinancial.co.nz. 

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.

Giant ANZAC Poppy - Auckland Domain

This ANZAC Day, Spratt Financial Group is truly proud to be involved in supporting the creation of the world's largest poppy in Auckland Domain. The poppy is made up of thousands of red discs, inscribed with messages of remembrance and support from everyday New Zealanders from all walks of life. It is a moving experience to behold as I did when I took the photos below. It is especially incredible now as the poppy is completely filled in, ready for the breaking of dawn on ANZAC day.

The world's largest poppy up close.

The red discs with messages of support and honor from New Zealand.

We encourage everybody in the area to get down and see the poppy for yourself. It truly is an amazing project, and it will be the site of a spectacular dawn service on ANZAC day as well. Spratt Financial was delighted to get involved, providing insurance for the poppy itself and its creators free of charge. It is the least we can do to help bring this to life.

The poppy, beginning to take shape.

We wish all New Zealanders and Australians a wonderful ANZAC day and we hope you will all take time to remember the sacrifices of the ANZACs and all those who gave their lives defending our country and our way of life. And now, you can view a special timelapse video of the poppy coming together here. Be sure to check it out.

Largest Southern Cross Travel Claims 2014/15

In the wake of Southern Cross announcing that they would be waiving the 'trivial' $100 excess from their travel insurance policies, they have also released the top 10 largest travel insurance claims from the past year, demonstrating just how necessary appropriate travel insurance can really be.

The list itself for the first time does not include only New Zealanders claiming from travel overseas. A claim totalling $236,000 was made by a foreigner who suffered a stroke while travelling through New Zealand and was forced into hospitalisation with an extended treatment. The CEO of Southern Cross Travel Insurance remarked that in comparison to any of these claims, the small cost of insuring your travel paled into insignificance.

The full list is as follows:

Highest value travel insurance claims for 2014:

1. $405,000 - surgery required for cancer in the USA.

2. $365,000 - air evacuation after a brain bleed and heart attack in North America.

3. $285,000 - blood clot while travelling caused a cardiac arrest on a plane, admitted to hospital in the US.

4. $236,000 - a tourist visiting New Zealand suffered a stroke requiring extensive hospitalisation and rehabilitation and transport to home country by air ambulance.

5. $193,000 - suffered a stroke in Europe, required air ambulance.

6. $177,000 - fell from a roof and fractured several leg bones in the USA.

7. $122,000 - family member of an international student diagnosed with cancer.

8. $120,000 - hit by a motorcycle in South East Asia.

9. $112,000 - heart attack while visiting New Zealand, required surgery and rehabilitation.

10. $105,000 - accidental fall resulting in broken bones in Europe

Source: Southern Cross Travel Insurance.

Whether you are travelling overseas, or you are a tourist looking to visit New Zealand, organising travel insurance should be the top of your priority list. Unless, of course, you have a spare $400,000 you're looking to offload.

Read how travel insurance bailed me out on my trip to the USA.

Read my experiences with the Southern Cross Travel claims process.

Need a free, no obligation quote? Use our contact form here.

Breaking Financial News

1. Asteron receives A+ rating from Standard and Poor's. - Good Returns

Asteron, New Zealand's fourth largest life insurer received a confirmation of its strong market position as S & P granted it an A+ rating for financial strength. New business has increased 14% to build further upon their 41% increase of the previous year.

2. New pandemic insurance to prevent crisis with early payouts. - Yahoo! New Zealand

In the past, governments have been forced to raise funds in the aftermath of disease outbreaks. The World Bank, the African Union and other financial institutions are attempting to circumvent this by designing insurance schemes which will pay out immediately as an outbreak happens, providing the funds to better manage the crisis before it fully takes hold.

3. Celebrities insuring their body parts for up to $40 million. - MTV.com

According to celebrity insiders, Taylor Swift's legs are worth $40 million and Kim Kardashian has had her derriere insured too. Famous singers have insured their voice and piano players have insured their fingers through brokers for a princely sum.

4. Southern Cross axes 'trivial' Travel Insurance Excess. - NZ Herald

In great news for travellers and Southern Cross members, Southern Cross have removed the $100 excess for travel insurance claims, calling the amount 'trivial' and unnecessary. Southern Cross hoped that the removal of the excess would encourage travellers to seek medical attention for minor ailments.

5. Crowded Kiwisaver market sparks concern. - Good Returns

With so many Kiwisaver providers on the market, fears are arising that things as they are will become unsustainable. A major expert in the field says that he could imagine a future with only a few large providers with multi-sector portfolios.

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.

Waitangi Day Reflections

Whenever I get a guest or a visitor from overseas, they without fail will remark that every little thing about our country is beautiful. The way that we can walk a minute from our houses, stand on the crest of a rise and see out over the harbour to Rangitoto Island. The forests that line the roads, the farmlands, the beaches, the mountains. Everything. These things somehow become normal to us, the ones lucky enough to live here, and we find ourselves just being numb to it all. Waitangi Day should be a day when we remember how lucky we are to live in New Zealand, one of the most beautiful places in the world. To that end, here are some pictures of our scenic wonders to help us all remember, and be thankful.

Happy Waitangi Day everyone and enjoy your day off!

Lake Tekapo, South Island.

                                     

Milford Sound.

Mt Ruapehu and Mt Ngauruhoe by Craig Potton

Cathedral Cove, Coromandel.

Hot Water Beach, North Island.

Wellington City.

Auckland City.

NZ Native Kauri Forest

Do you need trauma insurance?

Did you know:

1. 52 people are diagnosed with cancer everyday in New Zealand.

For many of us who only have basic life insurance or medical insurance, this could be a catastrophic event not only healthwise but financially. Lost income through work and the cost of care spiral upwards quickly, especially if you are the family's sole breadwinner and savings can be rapidly depleted. Upon diagnosis of a critical condition like cancer though, trauma insurance will pay out its entire sum assured to help you and your family financially through your tough times. For this reason, we recommend considering it thoroughly.

Furthermore,

2.  Although cancer rates are increasing, deaths due to cancer are decreasing.

The rate of death from cancer has fallen 16.2% in the period between 1999 and 2009. This reflects the continuing advances in treatment. As our population ages, the increase in cancer will continue, with a great proportion of those surviving the disease which is great news. However, once more, it brings into focus how costly a battle with cancer can be for an individual or family.

3. Between the ages of 30 and 65, one in five men and one in seven women will suffer a critical illness which trauma cover could insure them for.

This means that a working couple has a one in three chance of having one its members suffer a serious malady before New Zealand's current retirement age. Are you prepared?

4. 1 in 20 New Zealand adults have been diagnosed with heart disease. That totals a huge 165,000 New Zealanders.

5. A considerable number of less serious conditions and procedures entitle you to a full or partial trauma insurance claim payout.

Whilst you can certainly claim upon your full trauma cover for diagnosis of serious heart disease or when you undergo a major heart operation, many can be unaware that less serious procedures or conditions can be partially covered too. A friend recently found to his surprise that he was entitled to a payout of half of his sum assured for having a stent inserted into his artery (a relatively common procedure). The surgery itself was covered by his health insurance, so the trauma payout helped him pay outstanding bills and provided an unexpected boon to his finances. Read more about his story here.

6. The average age of a Trauma Insurance payout is 47.

This is considerably younger than most people expect to go through a serious health condition. As an average figure too, many payouts occur even younger than that.

7. 21 New Zealanders a day have a stroke.

Approximately 35% of stroke victims are aged under 40.

Visit our official website for more information.

Get a competitive quote on your trauma insurance - send a request today!