What is all the fuss about personal insurance? Do I really need it?

Planning for Life’s Uncertainties

Life is full of surprises, and being prepared for the unexpected is essential for financial security. In this post, we'll discuss the importance of risk management and insurance in your financial plan.

Understanding Risk Management

Risk management is the process of identifying, assessing, and mitigating risks that could impact your financial well-being. This includes risks such as illness or injury, job loss, property damage, and liability claims. By proactively managing these risks, you can protect yourself and your loved ones from financial hardship.

Types of Insurance

There are various types of insurance available in New Zealand to help manage different types of risks:

-          Health Insurance: Provides cover for medical expenses, including hospital stays, surgeries, and specialist consultations.

-          Income Protection/Mortgage Protection Insurance: Replaces a portion of your income if you’re unable to work due to illness or injury.

-          Life Insurance: Provides a lump sum payment to your beneficiaries in the event of your death.

-          Permanent Disability Insurance: Provides financial support if you become permanently disabled and are unable to work.

-          Trauma Insurance: Provides a lump sum if you suffer from a condition named in the insurance policy, e.g. a heart attack, cancer, stroke, amongst many others.

Assessing your Insurance Needs

When determining your insurance needs, it's essential to consider factors such as your age, health, occupation, income, and dependents. Working with an insurance advisor can help you assess your risks and choose the right insurance policies to meet your needs and budget.

The Importance of Regular Reviews

Life changes quickly, and sometimes we get so caught up in the day to day we forget the big picture. That’s why it’s so important to regularly review your cover to ensure it meets your needs.

Want to know more? Get in touch for professional advice support@legaseed.co.nz

Legaseed NZ Ltd (FSP1005404) holds a licence issued by the Financial Markets Authority and provides financial advice in relation to financial & retirement planning, investments, KiwiSaver and personal risk insurance. Our disclosure information can be found on our website www.legaseed.co.nz, or is available on request and free of charge.