To Have or Not to have!

Before you get into the depth of this article, let me make two things very clear.

My comments alone are not to be taken as risk / insurance advice, as everyone’s situation is different

Secondly, I have been in this industry for 20 years and while I am at the tail end of my career and don’t need the same level or risk protection, I have been a committed user of insurance products and still retain the products that I need.

In tough economic times why is it that personal insurance is the first expense that most people think is fair game to reduce the cost of or cancel completely.

I don’t disagree that insurance products are a purchase that is often made begrudgingly. What is there to show for them other than a folder full of terms and conditions and jargon most don’t understand.

We will come to that further in this article.

Don’t get me wrong, there genuine cases of hardship when relinquishing cover maybe only option.

However, what frustrates me, and I have witnessed it over and over again are those who continue to eat out, go on an overseas holiday instead of a local holiday or pop up in a new car and then say they can’t afford the premiums.

 I have also heard all the other rationale people try to believe for themselves. “I don’t need it; it won’t happen to me - My/our parents will help us out - The government will support me/us”

Ask the 30 something year old woman from Auckland who recently went public. To save money she cancelled her life cover on the premise ‘it won’t happen to me’. Three months later was diagnosed with terminal cancer.   Would she like that decision back? 

And a case I know of where a now solo parent his having to rely on grandparents who are driving over 400km round trip each week to support with childcare. Would the parent keep the $28 per month cover if they had the time over again?  

To have or not to have

I have never encountered so many claims in a 12-month period as I have in the last year.

Prior to the recent daffodil day (cancer society), the figure was released that 1 in 3 New Zealanders will suffer a cancer in their lifetime. 

Take a visit to the give-a-little pages.  How many are for seeking funds for some form of cancer treatment?

So why would anyone consider potential financial hardship without looking at all the options.

Here is the other part that frustrates me. 

People will spend $1,000 - $1,500 a year to insure a motor vehicle but say they cannot afford the premium to cover the income that funded the vehicle.

(As an aside, you insure your income, depending on your average tax bracket you can claim back that percentage of the annual premiums.)

So, what are the benefits of all that jargon and those folders full of terms and conditions.

 Ask our client who 24 hours after experiencing Abdo pain had a large piece of their bowel removed. Their cover means the debts are paid, income can continue, and recovery is less stressful on the patient and also the whole family. 

Ask our client recently diagnosed with progressive MS what the lump sum of money has meant to the family.

To have or not to have

I have witnessed both sides of the to have or not to have argument / discussion and I know which is far easier to work with when disablement or death come knocking on the front door.

Absolutely, having insurance comes at a cost.  But there are always options, so talk to the professionals and work through the options.

It’s not the greatest or best option, but some cover is better than no cover at all.  

And to end, did you know it’s blue September (men’s’ prostate awareness) month.  Did you also know that 1 in 8 NZ men will experience prostate cancer?

To Have: - peace of mind, some financial security.

To not have: - stress, anxiety, potential financial hardship.