#Insurance #IncomeProtection #MortgageProtection #AdvisersNeeded
Hey everyone! 👋 23F here, working fulltime in a factory with my partner who’s 24F. We have a mortgage together and I’m currently looking into getting Income Protection insurance to ensure we’re financially secure in case of any unforeseen circumstances.
Here’s a quick rundown of my current insurance situation:
– Life and critical conditions cover through AIA
– Medical insurance through work
– Considering Income Protection, but the quote I got from Vero seems a bit pricey at $100 a fortnight for both of us, covering $3900 a month.
I’m not too thrilled about dealing with my current AIA adviser due to some privacy mishaps, so I’m open to changing advisers. But before I do that, I’d love to hear from you guys:
– What ballpark figure do you pay for your Income Protection insurance?
– Do you think I really need all the insurances I have/want?
Also, if there are any advisers out there who’d be willing to help me navigate through this insurance maze, I’d greatly appreciate it! 🙏 Let’s chat about policy covers and find the best solution for my situation.
Let’s share our experiences and knowledge to help each other out! 💡📊🔍
Do you have any emergency savings? If you have transferrable skills I would recommend not having income protection if you have emergency savings i.e 3 to 6 months of living costs.
There is such a thing as too much insurance. Is your life also through work?
Mortgage protection is better than income protection. I can recommend my adviser who helped us.
Mortgage cuz what our adviser told us that there are no offsets but with income there are offsets when ACC comes into a claim. But with mortgage there is none.
Fidelity Life, premium $104/month, $4479 monthly benefit, currenlt age late 30 covers up to age 65, 13 weeks waiting period, office worker. You can tweak your premium with changing the waiting period, how much $ and how long the cover is. I have emergence saving hence the longer waiting period and went with cover up to age 65 in case I can’t work again and being single I might not have support network as I get older (sounds grim but who knows).
Hey! I’m an adviser and I can confirm that wording wise Mortgage cover can be a better outcome after considering wait periods, benefit terms etc.
happy to discuss if you wish to.
I’m an ex insurance broker. You don’t need any of them… until you do.
Because all these insurances do different things, they are all useful in different situations. But, due to the nature of insurance, they will never be useful to most people because they cancel their policies before making any claims.
When I sold my policies to myself over 20 years ago, my life, disability, income protection, trauma, and medical cover probably didn’t cost me more than about $150 a month in total. Now I’m in my mid-fifties, it’s around $900 per month. At some point, it just gets too expensive to pay all the premiums, and we need to scale insurance back.
It’s really a personal choice what cover to take. The biggest financial risk is a long-term disability, which is how income protection is promoted. Trauma (cancer, heart, stroke mainly) is more likely on average, but also something we have some control over by leading a healthy life. Medical is something we shouldn’t need, but for some operations, such as knee replacement, it can mean you avoid a 2 year wait.
Your chances of living to retirement age are pretty high, so there is also the risk that you won’t do enough towards your retirement and have no money. Personally, I’d be more concerned about that! Your monthly contribution will need to more than double to get the same end result for every ten years you delay starting.
Why does everyone bother with all these bs insurances?? You already pay acc which means if you get injured you still get paid. Hospital care is free, and I’ve been in and out a fair few times and had no dreams. And fk life insurance, if you don’t have kids then what’s the point, if you die then so be it. Stop wasting your money on this shit
Your premiums are cheap now but will ramp up over time. Life+critical and health is pretty good overall cover (unless something impacts you from ever returning to work which is where IP is great). Im ex finance but did do insurances 7 years ago so a little outside the loop.
In your position i’d review your life and critical, make sure there is enough there and see if they still offer a 10 yr term which should keep premiums level for the next 10 yrs instead of increasing yearly (might only be available on life) this was great if you were in your 20s.
Also IP is usually very expensive for factory/ manual work and think critical care will be more cost effective.
FA Here, Some great comments here. I would agree that the first point of order would be looking into having and building up some savings first at your current circumstances. Start with 3 months of living expenses and then re-evaluate.
At the same time, highly recommended that the two of you review your KiwiSavers and if you’ve used it for a growth fund probably you want to look at growth or aggressive funds (the banks are not a great place to keep it long term)
After you’ve done that, then have a look at your life and trauma (critical conditions) and makes sure it aligns with your goals because life insurance should go down over time (at least the need thereof) because your assets will grow, KiwiSaver and savings plus your mortgage will decrease.
With that said, have a look at level premiums – they cost more short term but the premiums will never change and will save you heaps in the long run.
Lastly, if you don’t like your FA then leave them as they will be earning a trail commission for as long as you have the policy or if they’re in a larger company, ask for a different one.
If you’d like any further insights or some ideas – send me a message 🙂
RE: Income Assurance, The longer you can wait before getting it, the cheaper the premium with be. I had a waiting period at 6 months, because I had well over that in savings and investments. Your broker should be able to explain the options.