There are many different types of Insurance policies out there, and even more companies offering their version of each. To help you gain a brief understanding of insurance policies, that may be worth getting for you and your family we have put together a list of a few.
Mortgage Repayment Insurance
Mortgage Repayment Cover is an insurance policy that will pay you monthly to cover your mortgage repayments if you become disabled as a result of illness or injury. Plus some insurance companies will allow you to insure your rental expenses if you don’t currently have a mortgage.
Why do you need Mortgage Repayment Cover?
Purchasing a home is a major financial commitment, so protecting your mortgage is important to help ensure that your mortgage repayments are taken care of. Mortgage Repayment Cover takes away the financial responsibility of having to pay your mortgage repayments if you become disabled and can no longer earn an income.
How does it work?
Mortgage Repayment Cover is determined by the amount of your mortgage commitment you have on your home. You can choose to cover up to 115% of your mortgage repayments. This means that your cover will not only pay your mortgage, but can help cover additional expenses such as home and contents insurance and rates.
The sum assured, how much you have insured your house and land, which is agreed upon when the policy is created. The sum assured is the amount paid out at the time the claim is processed if you have a mortgage owing on your home. If you have no mortgage owing on your home, any benefit received (or entitled to be received) as a result of the same disability will be deducted from the amount paid.
We understand that despite best efforts, life doesn’t always go to plan. If something happened to you, your loss could affect those you love financially as well as emotionally.
If you earn an income, how would you survive if you couldn't work? If you have family who depend on you, what would happen to them if you become seriously ill, had a bad accident or died?
Would your family cope with paying the monthly bills or making mortgage repayments without your salary? Would your business survive without your expertise? If you have a family, business, or other financial commitments, the impact of an unexpected death can be large.
Having certainty of cover can help your loved ones to survive financially should the worst happen, making all the difference at a time when support can be at its most needed.
Life Cover is designed to pay a lump sum if you die or are diagnosed with a terminal illness.
What is life insurance?
Life Insurance policies are designed to pay a lump sum if you die; protecting the lifestyle and future of those you care about. There are different types of life insurance policies to suit your needs, below is an overview. Please contact us for more information so we can find the best fit for you and your family.
Personal Life Cover
This is a standard life insurance policy that provides a lump sum. This can help your loved ones cover expenses such as your mortgage or funeral costs, support to continue raising your children, or ensure your partner’s retirement is protected.
Family Protection Benefit
Designed to minimise the impact on lifestyle after your death through a monthly payment to your family, rather than a lump sum.
Accidental Death Benefit
This is a basic form of life insurance that simply provides a lump sum should you die as a result of an accident.
Life Insurance can be used to:
- Cover funeral expenses
- Providing funds to your family after they've gone
- Clearing debt such as credit cards, personal loans and mortgages
- Pay for childcare support if the person who passed away was the primary caregiver
- Provide future financial support for your children
If you are terminally ill you can choose to access a portion of your life insurance to help with the cost of treatment or to tick experiences off their bucket list!
Your ability to earn is your greatest financial asset and Income Protection is designed to protect this asset, if you had an accident or became ill resulting in your inability to work.
Income Protection cover can provide you with regular monthly payments so you don't need to worry about your finances when you should be focussed on regaining your health.
When can income Protection help you out?
When you’re unable to work because of illness or injury, it can replace a portion of your income. This means you’ll still be able to meet your financial commitments.
There are also extras that can be added as outlined below:
Retirement Protection - You can keep contributing to your KiwiSaver while you are on a disability claim. We pay an agreed contribution directly to Inland Revenue and this enables you to continue receiving the member tax credits.
Redundancy Cover - If you're made redundant, you'll be covered with monthly payments for up to 6 months.
Claim Indexation - Your sum assured will increase every year by the same amount as the CPI, (New Zealand Consumer Price Index). This helps your sum assured stay in line with inflation.
Accidental Injury Cover
Experiencing an accidental injury can have an immediate impact on your daily life and ability to do your job, whether you’re a builder, office worker, or a parent caring for children at home. This is an add on policy for short-term financial support, helping you continue daily life while recovering.
You choose how much cover you need, up to $5,000 a month. The lump sum you receive is based on the applicable injury category. For more information please contact us.
This cover provides an up-front payment, should you be injured accidentally. You can use this lump sum for whatever you need:
- Treatment costs
- Taxis to work
- Hiring someone to help with children
- Covering loss of income while taking time off work to recover.
Trauma insurance can provide you with a lump sum if you suffer from a defined serious illness or condition. This payment can be used for whatever you and your family need to get you through a difficult time. This could be covering medical costs, hiring extra help at home while you support your child through treatment, or allow you to take time out with your family to recover without worrying about how you’ll pay household bills.
Why do you need Trauma Cover?
On-going improvements and advancements in modern medicine mean you have a greater chance of surviving a serious illness or condition but the financial impact it can have on you (and your family) can be significant. Having Trauma Cover in place can help minimise the financial impact, allowing you to focus on what’s important – your recovery!
How does it work?
You will receive a lump sum amount and it’s your choice how you use the money. This can help you and your family with finances whilst you’re are coming to terms with coping with a serious illness.
This lump sum can be used to:
- subsidise lost income
- cover day-to-day expenses (e.g. power, phone, food, petrol)
- help cover debts e.g. mortgage, credit cards
- assist with medical costs associated with recovery
- seek alternative treatments
- pay for home alterations, rehabilitation and home help
Total & Permanent Disability Insurance
If you become disabled through illness or injury, you may only receive limited ACC cover or a basic sickness benefit. Plus you may face extra costs to assist with your daily living such as alterations to your house or paying for in home care.
Having Total Permanent Disablement Cover can help minimise the financial impact and allow you to make choices about the care or treatment you may require.
Total Permanent Disablement is where, as a result of accident or illness, you:
- Cannot do your own job or (where applicable) another job to which your skills may be suited; or
- Suffer loss of limbs or sight; or
- Cannot perform at least two of the following activities without the physical assistance of someone else:
Bathing and showering
Dressing and undressing
Eating and drinking
Using a toilet
Moving from place to place by walking, in a wheelchair or with a walking aid.
Or, alternatively, you are unable to perform one of the activities noted above and your intellectual capacity has reduced or deteriorated to an extent that you require permanent and constant supervision.