What's Looming Just Out of Sight? Five essential questions to review your insurance plan.

Personal Insurance Planning - Are you like many others and take a sort of  "set & forget"  approach? It's not unusual for us to find people who started a plan 10 or more years ago and never revisited it, because they just don't, or don't want to, think about it. Offers of a review are often declined because there's a perception that the adviser 'only wants to sell me more'...but your life circumstances are constantly changing - though incrementally and almost imperceptibly.

Your insurance plan should have only one objective - to ensure that you and those important to you will not be financially 'broken'  by a "foreseeable but unpredictable" event - premature death, serious illness or an inability to work.

It's not uncommon for us to find that a review of an insurance plan (particularly an older, neglected one) reveals that there is way too much of one type of cover (such as life insurance) while there's a complete absence of  other benefits (such as income protection or serious illness) that are more appropriate for later stages of life, when the kids are grown and off your hands, and the debt is under control. Should YOU be reviewing by now?

Then here's a quick 5-step exercise to undertake to see if your insurance plan will deliver what you think it should.

1. What's your debt now? Compared to when you started your policy, this could have increased or decreased but it will certainly have changed. If you were to 'fall under the bus' tomorrow, will there be enough cash for all the debt to be paid off? If not, what would be the consequences for your survivors - will they be able to keep the house? Would your existing insurance plan meet this need AND provide additional money for the survivors?

2. What's your income now?  This is likely to be a lot greater than 10 years or more ago, especially if the children are older now (or gone...if they ever really do!) and the household has two full-time incomes. So, what would be the effect of either of those incomes being lost due to illness for a long time - or permanently? Something would have to give: what exactly? Does your debt repayment plan get longer? Does your retirement savings contribution reduce, or possibly even go backwards? How does your existing insurance plan meet this need?

3. What if you're diagnosed with a serious illness? Unless you're terminal, the life insurance won't pay. You'd probably use all your sick leave entitlement pretty quickly, and then you'd need to decide whether to work or take time off: Stopping work is likely to speed your recovery, but can you AFFORD to stop working? Does your existing insurance plan meet this need?

4. What if you can never work again? To be totally & permanently unable to follow your chosen occupation, due to accident or illness, occurs more often than many people believe. What would your financial situation look like if that happened to you? Income is reduced (even under ACC, which is temporary at best) or even possibly totally lost, if the cause is illness. Would any of the benefits in your existing insurance plan meet this need?

5. What if you or your family need medical treatment,but the State system cannot give that treatment for 6 months, or longer, or at all? Increasingly, non-urgent treatments are being 'rationed' within our state medical system. Many people to their dismay are discovering that they cannot even get in the Waiting List -because they don't qualify under the 'points system' that is used to triage the needy. Access to timely treatment can be life-saving at best, and pain-relieving at least. Does your existing insurance plan provide for this need?

In all the above cases, what is needed is MONEY. Insurance provides money, and peace off mind.

A review of your current needs is a simple matter, and engaging the expertise of an experienced insurance adviser can make the difference between hap-hazard arrangements and having a fully integrated plan that gives you certainty of outcomes in any number of circumstances.

If you haven't heard from your adviser in some time, then you might choose to make contact and take a good look at what your insurance spend is actually buying you.

Alternatively, you can contact us at Prosperity Plus - www.prosperityplus.co.nz or call on 021 442 811.

A Disclosure Statement is available free of charge and on request.

Original Article - https://www.linkedin.com/pulse/whats-looming-just-out-sight-five-essenti...

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