Who knows what tomorrow can bring? ‘Tomorrow’ is a big question mark for all of us. Nobody can really tell what is around the corner. A good Health Insurance Policy (also known as a Medical Insurance Policy) is a must as it safeguards you from the future financial uncertainty of bad health / illness. There is nothing more appropriate than the proverb: ‘A stitch in time saves nine.’ Having a good Health Insurance before things start going wrong is one of the best “stitches in time’ that we can have in place. It protects us from the negative financial ramifications that ill health can have on our and our family’s financial well being.
But how to choose the right Health insurance protection from the numerous schemes offered? The Answer - use a professional who knows the market to hunt out the best deal for you. This answer remains the same for all types of insurances and not just Health Insurance. Insurance is a tricky business with legal jargon in policy wordings. Even
if you have the time and the inclination of pouring over these for several hours over several days (after which maybe you might get it right), it is no match for the many years of knowledge and experience that a professional Insurance Adviser / Broker brings to the table. Remember the Insurance Adviser / Broker should be independent, which means he/she should be representing at least 3 or more companies. Otherwise, if they are doing business with just one (or two), they just become glorified salespeople of the company they do business with. An independent Insurance Adviser will guide you on how to avoid the unnecessarily expensive Health Insurance policies and find the cost effective Health Insurance Policies. The post recession period has seen a big jump in people getting Health Insurances and many other types of insurances like Income Protection, Trauma Insurance, Redundancy Protection, Mortgage Protection and such, in New Zealand, as it has helped people focus on the ri
sks around them.
The other big uncertainty in life is life itself. Pre-mature death is the other big risk that can throw our families into a financial tail-spin. Life Insurance takes care of that risk. It makes sure that there is money on hand to settle debts like mortgages, etc. It makes sure there is enough money to take care of other family matters like the cost of bringing up children single handedly (for the surviving partner). It gives a lot of choices for the family members left behind who otherwise would not have these if there was no Life Insurance in place.
Income Protection Insurance is another booming insurance, post-recession. This insurance can protect up to 75% of income if one is unable to work due to a disability. Mortgage Protection Insurance works quite similarly to Income Protection Insurance in the sense that it is designed to pay out if one is disabled and off work. However, a Mortgage Protection Insurance pays the mortgage directly to the
bank at claim time, whilst the Income Protection Insurance pays the individual at claim time. Some policies also cover the risk of being made redundant. In many instances, the premiums for certain types of Income Protection Policies are 100% tax deductible which becomes a further attaraction. It can even be designed to pay out big cash lump sums if one is deemed Totally and Permanently disabled which can become a further huge help when faced with the prospect of never being able to work again.
Statistics reveal that ailments like cancer, heart attacks and strokes comprise almost 70% of all claims. The cost of treatment of such ailments can be covered through Health Insurance but critical illnesses like heart attacks, strokes, cancers and many others also affect post illness lifestyles, like inability to perform their jobs, modifications to homes, cars, etc. Trauma Insurance is designed to pay a cash lump sum amount when struck with these kinds of critical illnesses,
thus taking care of such post illness needs. These policies cover serious diseases like cancer, stroke, coronary disease, paralysis, multiple organ failure, blindness, brain tumour, Parkinsos’s disease, Azheimer’s disease, muscular dystrophy and many such other critical illnesses. Again, an independent insurance advisor will guide you properly to select the best options.
Finally it can be said that you must never neglect your health and your life. A little more investment in health insurance, life insurance, income protection insurance, mortgage protection, total permanent disability insurance or trauma insurance policies will give you solid support at the time of need when financial assistance may not come from any other direction. Proper planning and careful selection will ward off the danger that the future can bring.
Porus Kateli specialise in the ‘Life’ type of insurances which deals with the risks posed to our and our families’ financial, emotional and genera
l well-being, such as pre-mature death, illnesses, accidents and disabilities. He has been in this side of risk insurance for the past 11 years. Plese more information http://www.kateliconsulting.co.nz