Insurance: the foundation of your financial stability

Many people view insurance as something you only need to start thinking about when you do something truly ‘adult’, like buying a house or becoming a parent.  

But in reality, insurance is important at every stage of your life, and should be taken into consideration early on. It’s a key part of your financial wellbeing, ensuring you are protected if the unexpected strikes. It helps remove potential financial burdens during tough times and provides security, meaning you have less to worry about. 

By getting the right insurance to cover your needs and adjusting that cover to suit new situations, you’ll be protecting yourself and the ones you love from unexpected and undesired outcomes. 

Having insurance means you pay a periodic fee (like a fortnightly or monthly payment) and, in return, can claim financial help when certain situations that you’re covered for happen. 

This means you don’t need to fork out large sums of money during challenging times, such as a car accident, when you or a covered family member is ill, your home is damaged, or some other unforeseen event occurs.  

Insurance provides a safety net, letting you live your life with less to worry about. If an accident, disaster, or tragedy occurs, you and/or your loved ones will be protected, as long as you have the coverage you need. You’ll have the backing of the insurance company, so you can face these challenges without having to shoulder the additional financial burdens that comes with them. 

The insurance world comes with some of its own wording, and these are terms you’ll want to know. This way, when you read the policy or info page, you’ll know exactly what is being discussed. Here’s a quick breakdown of some of the core terms: 

It’s easy to get overwhelmed when you’re starting to look into insurance cover. There are a lot of providers out there, offering a variety of options that focus on their chosen areas of expertise. So before you dive into quotes and commitments, it’s important to know what kind of insurance you need. 

Getting some professional help can save you a lot of time. An insurance advisor can work with you to figure out what you have, what you should insure and the level of coverage you might need. They may think of situations you didn’t even consider, providing insight to help better protect you. 

And talking to an expert doesn’t mean you need to buy straight away. Get the information you need, then do your own research. Since you’ll have a place to start from, you’ll quickly be able to get quotes and talk to friends and family about their experiences with their providers. 

When you start to punch in numbers for quotes or applications, make sure to take a little time to examine what the differences are with different selections.  

For instance, a lower premium may seem like a better deal, but the price you may pay in the long run could be a lot higher, so it’s worth checking what level of coverage it provides. It’s possible that a slightly higher premium offers far greater cover, meaning you’ll be protected in a greater number of situations, reducing the price you pay overall. 

You should also play with the excess amounts, examining what increases and decreases in excess do to your premiums. Just keep in mind, a higher excess will mean you’ll need to pay more each time you claim. 

When you’re putting together your quote or application, you need to be completely honest with the provider. Increasing or decreasing the value of something you’re looking to protect may seem harmless, but providing false information could see the insurer declining your claim or cancelling your contract. 

If you’re making a claim, it usually means something has happened. The last thing you’d likely want at this time is the additional stress of having to find the money to cover yourself if your claim is denied or contract isn’t upheld. 

And read it carefully. You want to make sure you understand exactly what’s covered, what all the terms mean, and are happy this will cover you. If there’s anything in the policy that doesn’t make sense to you, be sure to ask questions. 

You should be 100% happy when you sign your policy that it meets your needs. 

It’s easy to get comfortable once you’ve got the insurance you need, but if there’s one constant in life, it’s that things always change.  

So, whenever you have a change in your life, such as buying a new car, changing jobs, moving in with someone, becoming a parent, buying a house, or getting married, you should review your insurance coverage. 

Insurance could save you time, money, and stress  

Insurance is the foundation of a solid financial plan, providing you with the coverage you need when challenges arise.  

By making sure you’re covered by the correct insurance policies, you’ll be able to protect yourself and those you love from the unexpected. It will provide you financial security during uncertain times, reducing the worries you may be facing. 

This article is solely for information purposes and is not intended to be advice with respect to any matter discussed in it. If you need help, please contact BNZ or your professional adviser. Neither BNZ nor any person involved in the material accepts any liability for any direct or indirect loss or damage arising out of the use of, or reliance on, all or any part of the content.