​A claim on a policy is the most important event in the life of that policy. It should pay the right amount of money to the right people (or person) at the right time. If it doesn’t, it hasn’t fulfilled its purpose.
So how do you make sure this happens?
It starts with the initial discussion with your adviser.
Make sure :
1) He/she is a registered adviser and either has qualification or has been in the insurance industry for some time. You want advice based on knowledge and experience.
2) Be open about your financial affairs. Most likely the adviser will provide you with a “Scope of Service”. Following discussion with you, this will confirm what service you are expecting. Eg. Recommendations on what sort of cover you should have. What amount of cover you should have, a comparison of product quality or premium cost with other insurers etc. A while after that you should receive from your adviser a written “Statement of Advice”. This outlines his/her recommendations and the rationale behind the recommendations.
3) When the amount and type of cover is decided upon, the application to the insurer can be started. It’s essential that all information about your health, occupation and any hazardous pastimes is included. Sometimes claims are voided because something material about health has been left out. If in doubt, put it in. (Note: Insurers are in the business of paying claims. They do not void a claim lightly)
4) Once the application has been assessed by the insurer, you will receive what’s known as an “Offer of Terms” from the insurer. This outlines whether the insurer will accept the risk. If so, will there be any exclusions? Will there be an extra premium because of health, occupation or hazardous pastimes? Read these carefully. Your adviser will go over them with you, but the ultimate responsibly is yours.
5) Claim time can be a stressful. You are already under pressure with sickness or handling the affairs of a deceased loved one. A good Adviser will handle the detail of the claim for you. The forms required by the insurer. Are medical requirements needing to be satisfied? Your Adviser should organise and make the process as stress free as possible.
I trust that’s been of use.

I am sure you are aware there many different types of personal insurance. After Life Cover perhaps the most common type of cover is Trauma, also known as Critical illness cover.​

This pays a lump sum to the insured person for major illnesses that are covered under the policy. The policy wording actually specifies what conditions are covered and the level of severity of that illness to see a payout made.
 
For example. How severe does the heart attack need to be to see the payout? Or what types of cancer are covered?
 
Although the main insurance providers in NZ are similar in definition there are some differences worth looking at.
 
The main providers cover around 40 different conditions. However 85% of all claims are for Cancer (over 50% of all claims) then heart attack, stroke and coronary bypass.
 
I usually recommend that the amount of cover should be between 18 months to 3 years of your income. (Depending on budget) So if you are earning say $60,000 a year, the cover amount to consider: Between $90,000 and $180,000.
 
The money can be used to supplement income over a period while the insured is recovering, or any other purpose. Reduce debt, get treatment or medications not covered under our health system or simply go on a holiday. Anything at all. 

Trust that’s of help​!

A couple of weeks ago we sent out a survey. Here's a couple of responses that you may find of interest.

• When it comes to the purchase of product of any sort, 81% of people said that they consider quality and price (as opposed to just price).

• 71% of people said, when it comes to insurance, the prefer to deal with a broker or adviser (as opposed to dealing directly with the insurer).

Quality: We use an Independent Industry Recognised Research House when recommending on Insurance Product Quality (largely to do with policy wording, which is important at claim time).
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Price: Remember as a family business, with low over heads, we will not be beaten on price.