Personal insurance is all about protecting you and those you care about from the unexpected. It insures your health and your ability to earn an income to make sure that no matter what happens you can support yourself and those who rely on you financially.
With that said, depending on your circumstances, you may only need certain personal insurance products. Plus it’s important that you get the right level of cover – too much and you’ll be wasting money, too little and you may not have the protection you need when something happens.
Personal insurance includes a range of products that insure your time, your health and your income:
It’s important to note that even within each type of insurance, every policy is different. That’s why when you buy insurance, you need to take the time to get expert advice and read the policy document so that you know exactly what you’re paying for.
Buying personal insurance is a good idea for most adult Kiwis but the level of cover and type of products you might need depends on your circumstances.
For example, if you’re the sole income earner in your household and you’ve got children and a mortgage, it may be best to get extensive cover. That’s because if you were to stop earning an income for whatever reason, your family might struggle to cope without it. The rule of thumb for life insurance in situations like this is to purchase cover equal to 10-15 years of your income.
On the other hand, if you’re a university student with no mortgage and no dependants you may only need basic insurance. The point is your level of cover and the policies you buy need to be tailored to your unique situation so that you get as much value as possible out of them. If you’re not sure you’ve got the cover you need, don’t wait until something happens to sort it out – get in touch with the insurance experts here at Money Empire. We’ll get to know you and your situation and tailor your cover so that you have all the protection you need and none you don’t.