Reflecting on last month

September: A wake up call for me….

A business associate’s wife died after a short illness at age 71.
A relative’s wife died two days after being kicked by a horse at age 60.
A business associate involved in a motor vehicle accident and died, aged 62.
A recently retired colleague died of a stroke at 66 years of age.
A close friend felt unwell, was diagnosed with a fast-growing brain tumor at age 64.
A client’s 39 year old son with two young children was diagnosed with brain tumor.
A good friend diagnosed with non-Hodgkin’s lymphoma at age 65.
Finally, the devastating consequences of three concussion events have been front of mind this month;
– A friend is taking early retirement to look after his wife (aged 60) who is suffering badly with concussion after a fall.
– A friend’s daughter was knocked off her bike cycling home from work and two and a half years later is still battling concussion.
– A young mum took her 2 year-old to Zoneout Centre, fell awkwardly on a bouncy mat and suffered a concussion that has kept her off work so far for over three months.
These events have been troubling for me; and I hope this newsletter is also a wakeup call for you.

 So…… how well prepared are you and your family if one or more of the above events occurred? 
Checklist One Managing your own risks

Upon your death:           
 Will you leave behind a freehold home for your loved ones?
 Will all debts be eliminated?
 Will you leave a minimum of 5 years’ income replacement?
 Have you provided an educational fund for your surviving children?  

When you need medical treatment:
 Do you have a fully funded medical care program?
 Do you have access to specialists, diagnostics and surgery?
 Do you have access to non-Pharmac funded medications?

If you were unable to work due to a major sickness or trauma event: 
 Do you have one year’s household income in a cash fund or insurance policy?

If you were unable to work due to illness, accident or redundancy: 
 Do you have three months’ savings in a ‘do not touch’ bank account?
 Will you be able to live on 75% of your pre-disability income?  
 Do you know only 1 in 8 disabilities are by accident and covered by ACC?
 Do you have access to medical specialists who can give you a second opinion?  

If you were totally and permanently disabled:    
 Would all your mortgages and personal debt be repaid?
 Do you have funds to pay for 24/7 cost of care?  

Making sure you can pay the premiums at the time when you need the cover

Most policies have been issued with Yearly Renewable Terms. These are very cheap at the beginning, but premiums increase dramatically from age 45 onwards.
The truth is most Yearly Renewable Term policies are cancelled prior to the insurable event occurring around age 47-49; you still want / need the cover but can’t afford the 9-11% per annum rising premium.
If you need insurance long term (over 9 years) The only logical way you can afford ongoing insurance protection is by purchasing Level Premium from the start.
With Level Premiums you are able to protect your long-term risks and guarantee affordability into the future. The savings are significant, and the benefits are certain.
Our experience is that many of our clients still need insurance beyond nominal retirement age.
For life insurance, for certainty, the best and most economic policy is Level Premium to 100.
Trauma policies can be leveled to age 65, 70 or 80
Income protection policies can be levelled from 60,65 or age 70.
Level Premiums are not available for Medical Insurance.

Checklist Two How to fund your insurance

 Do you know whether your insurance premiums are structured to suit your future risk management needs? 
If you have uncertainty on any item highlighted above or if you need advice on managing your risks or suitably structuring your premiums, we are here to help.
Contact your adviser.