A few things to consider about your personal insurances…

There’s nothing quite like becoming a parent to make you think about the future!

Whether you are planning your first child, you’re adjusting to life with a newborn, or navigating the juggle of multiple kids, it’s natural to start thinking about how to protect your family financially. 

Insurance is one of the most important tools for making sure that, if the unexpected happens, your family’s health and financial wellbeing is protected. But many people ‘set and forget’ their insurance cover, only to discover later on down the track that it no longer suits their life stage. 

In this article, our expert insurance advisers share some insights into what to look for in your personal insurance policies if you’ve recently started or have expanded your family.

Is your insurance cover still the right amount? 

Life insurance is designed to help your loved ones cope financially if something happens to you. When your family grows, your responsibilities usually do too. 

So if you’ve recently expanded your family, it’s a great time to ask yourself: 

• Do I have enough cover to pay off the mortgage? 
• If something happened and I couldn’t work or was no longer around, how long would my partner or children need financial support? 
• What support will my children need in the future and is my cover adequate to provide this if I was no longer around? 

Even if you already have life cover in place, a growing family the additional financial commitments that come with dependants mean it’s likely to be worthwhile to review your cover. 

Do you have income or mortgage protection in place?

Having dependants and raising children can be expensive. If you are a main source of income for your family and something happened to negatively impact your ability to work, your family’s financial position could change very quickly. 

Income and mortgage protection policies can replace a percentage of your income if you’re unable to work due to illness or injury. It can help cover day-to-day expenses, pay the mortgage, and keep your families head above water while you recover. 

Again, if you already have a policy in place, it is worth checking the stand-down period, payment terms and amount you are insured for to make sure it still fits your current income and obligations.

Have you added trauma cover? 

Trauma insurance provides a lump sum payment if you’re diagnosed with a serious illness or condition such as cancer, heart attack or stroke, none of which are covered by ACC.

For families, this type of cover can be particularly valuable as it can fund time off work for treatment or recovery, help with medical costs, or pay for extra childcare and household support if you become unwell.

Have you updated your policy beneficiaries? 

Each time your family make-up changes, it’s important to make sure your policies reflect your wishes in the event of a claim. This includes checking: 

• Who the beneficiaries are of your life cover,
• Whether you will and estate plans align with your insurance documents, and 
• That your partner is authorised to deal with your insurer, if needed. 

Keeping these details up to date ensure that, if the unexpected happens, the right people are looked after with minimal delays or complications.

Are your details still up to date?

A change in job, income, address or health status can all affect your cover. Some changes may also create opportunities to adjust or streamline your policies – especially if your risk profile has improved over time. 

We recommend reviewing your insurance cover any time there’s a major life event, including a new baby, a house purchase, a change to your income or a shift in your long-term plans. 

Having a regular review with your adviser and keeping them informed of any updates or relevant changes, can help ensure you don’t run into any surprises at claim time, that you’ve claimed for everything you’re entitled to, and that you have the right cover in place for your age, stage and risk appetite. 

If it’s been a while since your policies were reviewed and updated, now is a great time to check that they still reflect your life and your priorities.

Plus, book a complimentary insurance, mortgage or KiwiSaver review this month and go in the draw to win a month’s mortgage repayments on us, up to the value of $5,000. Simply click this link, fill in the form and we’ll be in touch to book your review.  

The content of this article should not be taken as financial advice, or a recommendation of any financial product. These insights are based on industry knowledge and our personal opinion. Threefold is not liable or responsible for any information, omissions, or errors present.