Insurance

Insuring Your Wellington Property

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We’ve been talking about “the big one” hitting Wellington for decades and it seems the insurance companies are more worried about it than most. Stevie explores what this worry means for insuring your home in the capital.

 You may have heard last week’s announcement from IAG (and its associated brands) that they are further limiting their new cover in the Wellington area. If you’ve lived in the Wellington region for a few years, you will know that this isn’t particularly a new announcement. Since the Kaikoura earthquake, IAG undertook a conservative (a.k.a. risk averse) approach to Wellington homes.

 

It is, however, a good time to discuss what this means for you as a Wellington homeowner.

 

Firstly, we’ve spoken to our Fire & General Insurance Brokers and it is business as usual. There are still companies that happily insure Wellington homes.

 

Secondly, we’ll be keeping our finger on the pulse for any changes with other insurance companies and keep our clients informed as always.

 

Finally, if you are concerned about the insurability of your home or rental properties, give us a call and we’ll talk it through with you.

 

A Quick Guide to Personal Insurance

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Insurance can get confusing. Huge policy documents, insider lingo, fine print everywhere. It’s supposed to provide peace of mind, but can instead just play havoc with even the sharpest samples of grey matter.

So, here’s a 101 guide to understanding your personal insurance.

 

In New Zealand, there are four things a person can insure themselves for:

 

1. Life

 

Why? To repay debts, cover funeral costs and give your loved ones the financial freedom to properly grieve.

 

Who? This pays a lump sum to your estate or the person of your choosing.

 

2. Trauma

 

Why? Give yourself space to recover, whether or not you’re off work for a prolonged period of time.

 

Who? This pays a lump sum to you if you are diagnosed with a specific illness.

 

3. Income Protection

 

Why? Unfortunately the bills still come in if you’re unable to work due to injury or illness. This will pay a percentage of your income (or mortgage repayments) until you’re able to return to work.

 

Who? This pays you a monthly sum.

 

4. Health

 

Why? If you need non-acute surgery, you can skip the public queue and go straight to a private hospital.

 

Who? This pays the medical professionals that are looking after you.

 

Finally, it’s important to ensure that your cover is relevant to your life. Here are a few examples of life events that may impact the relevance of your cover. If any of these apply to you, give us a call!

•          You have new additions to your family

•          Your kids leave home

•          You get married and/or divorced

•          Your job changes

•          Your salary changes

•          You have had any health issues (more than just a GP visit)

•          You have set up a new company or trust

•          You have bought or sold a property

No investment decision should be taken based on the information in this blog alone

Debra’s VERY Real Experience of Health Insurance

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By Debra Halton

As I sat recovering from my operation at Southern Cross Hospital, I was very

appreciative of Velocity’s work health insurance scheme, ultimately making my

elected surgery possible.

I was also struck by the fact that I sell health insurance and had never visited one

of the hospitals properly before — my eyes were opened to a whole new world.

And I now understood why clients’ favourite insurance is health

insurance — something most of them at some stage get to touch and use. In fact,

apparently, one-in-five New Zealanders have health insurance, so it’s more

common than I realised.

Years earlier, I had been told that in the future I may elect to have a surgery

done. I investigated the options. If I wanted to use one of the leading surgeons in

New Zealand, I would have to go private and, without medical insurance, this

would cost me personally tens of thousands. Going through the public hospital

was an option and much cheaper (i.e. free) but I would have to have an older

method of surgery and would not have the same flexibility with dates and times.

Plus, my recovery would be much longer.

So, because of all this, for years, I did nothing and grew increasingly

uncomfortable until finally Velocity came to the rescues and put the health

scheme in place. The beauty of a group health scheme is that it covers all past

health conditions, whereas a new individual scheme taken out by just me would not.

I had never been to a private hospital before and could not believe what a lovely

experience it was. From having my own private room to not being interrupted all

night (unless it was for a five course meal, which unfortunately I felt much too

sick to enjoy eating), I really appreciated the high quality of care. I felt very well

looked after. I also had the option to stay an extra night when I was not feeling

well and did not feel I was being rushed out to make room for a bed.

So, thanks again Velocity for making it possible for me to get the surgery I

needed with a top surgeon and in a beautiful hospital. I am well on the way to

recovery. I feel very fortunate to have been able to do this.

If you have a business with five staff or more you could also look to put a group

health scheme in place. It used to be that you required a large number of staff to

be able to access these schemes but that has changed.

If you would like to know more about health insurance, please speak to your

Velocity Financial Adviser.

Debra Halton is a Registered Financial Adviser with Velocity Financial. No

investment decision should be taken based on the information in this blog alone. A

disclosure statement is available free of charge upon request.