In today’s world, it is not easy to be prepared for all the unexpected. Thinking about the future can be hard, given that we’re unsure of what the future holds. For this reason, it’s important to have a safety net. A safety net can help alleviate some of these worries. One thing that you could do is personal insurance.
Personal Insurance will provide a level of security for unpredictable situations.
The need of insurance arises in situations where you need to make sure that your family has the financial backup in case anything goes wrong.
With an insurance plan, your family will be protected against all kinds of risks that could otherwise lead to tremendous stress. For example, if you suffer a pre-mature death, your family will not suffer from financial stress. Additionally, there are many other benefits that are unique to different plans.
There are various types of insurance policies available in the market and each one of them has its own benefits and limitations. If you want an insurance policy that covers every aspect of your life, then you should opt for a comprehensive plan which includes life, health, and disability cover.
Some of the more common insurance plans are life insurance, trauma (critical illness) insurance, total and permanent disablement (TPD), income protection and health insurance.
Life insurance is a type of insurance policy that covers the individual’s life and provides income to their loved ones in the event of their death.
Insurance policies can be bought either in a lump sum or as regular monthly payments (Life Income cover), and they can provide coverage for children, spouses or dependents. Some policies also include an optional savings account to fund retirement.
A critical illness insurance policy can come in different forms, depending on your needs and preferences. For example, you may want a plan to cover a specific disease or a plan that pays out a lump sum if you get any of the covered diseases.
The most common types of diseases that are covered by these policies include cancer, heart attack, stroke, pulmonary embolism and organ failure. In order for this type of insurance to work best for you, it’s important to understand what type of coverage will work best for your needs and budget.
It is important to note that not all trauma covers are created equal, and it is recommended you understand your policy to ensure your cover matches your expectations. Trauma insurance can help cover medical bills or provide income to allow you time to focus to recovery.
Total and Permanent Disability Insurance (TPD) is a type of insurance coverage that pays out when there is an accident or illness that leaves the insured unable to work again. The insurance company pays a lump sum benefit in the event of a total and permanent disability, there is also a smaller percentage lump sum benefit payment if you suffer a partial disability.
This benefit is meant to cover immediate costs for treatment, care, house modifications and debt repayment.
Some reasons for needing TPD coverage:
The purpose of Income Protection Insurance is to replace a person’s income if they are unable to work due to an illness or injury. They allow individuals to continue living comfortably, maintain their lifestyle and take care of the financial commitments they have taken on. Income protection insurance policies typically cover a percentage of a person’s income for a specified period. The level of protection can be set by the policyholder, and the cost varies depending on desired coverage and length of coverage period.
A common misconception is that Income Protection Insurance is only relevant for people who are currently working. However, income protection insurance can be very relevant for people who are in between jobs or are unemployed.
The New Zealand healthcare system is one of the most socialized in the world. However, not everything is covered by the public health system. The Ministry of Health provides funding for all New Zealanders to receive free or low-cost access to doctors and hospital care, but there are also people who need private health insurance.
Private health insurance is often used when someone needs to cover their prescriptions, dental care, access to faster medical treatment, access to Non-PHARMAC funded treatment or other services that are not covered by public health care. There are various different options for this type of insurance that can help you find something that fits your needs best. Having private health insurance is a key part of your financial security as, the cost of medical treatment can have a crippling effect on your long-term financial goals and retirement.
Interested in working with The Nimbus Project? To obtain the best insurance advice, send us an email or make an appointment with one of our experts.
The Nimbus Project believes that each of our clients have their own financial goals and that is why we believe it is important for us to look at everyone as individuals. We are experienced financial advisors who operate in a professional and timely manner to serve our valued clients.