Before you start searching for a Financial Adviser look at the facts

Navigating the life insurance landscape can be difficult in this day and age. With so many Life Cover options, working out what is best for you can be overwhelming at times. Which is why enlisting the help of a Financial Adviser can be one of the best decisions you will ever make when it comes to insurance – especially when it comes time to claim.

Read more below on Life Cover and how a specialized and trusted Financial Adviser can be your biggest ally when applying for Life Cover.

What is Life Cover and Why Do I Need It?

Life Cover is a form of insurance that pays out a lump sum in the event of death. In most cases, the diagnosis of a terminal illness will also trigger the pay out of your Life Cover sum insured.  Life Cover is designed to be a safety net to ensure that your loved ones left behind are not thrown into financial turmoil at an uncertain time. For example, you may take out Life Cover if you are the main income earner with the idea that the mortgage on your family home is repaid should you pass away – this could mean that your family does not have to sell the family home or maintain mortgage repayments in the event of your passing.

Can I Still Get Life Cover if I Smoke?

In short, yes. As a smoker you will be viewed as being more at risk than a non-smoker and as such, the cost of your Life Cover will be more. However, if you give up smoking for an extended period of time (usually more than 12 months) you can apply to have your Life Cover premiums reviewed and most likely see a reduction in your premiums.

Read more below on Life Cover and how a specialized and trusted Financial Adviser can be your biggest ally when applying for Life Cover.

Do I Still Need Life Cover If There is ACC?

It is important to remember that ACC only covers you in the event of an accident. By comparison, the Life Cover offered by most New Zealand companies, provides a lump sum pay out should you die from either an accident or an illness.

Note that if you are self-employed and have ACC CoverPlus, there may be a way to combine your ACC cover and private insurances to maximise coverage and reduce your ACC costs – a Financial Adviser who specialises in ACC and insurances can help you work through your options.

Should I Get Life Cover Through a Financial Adviser?

Everyone’s situation and life cover requirements differ. For some, they may be wanting to have additional expenses factored into their calculations for life cover such as providing a replacement income for their spouse, or even covering future education costs for the children. Also, ownership of the life cover policy may not be straightforward – as can be the case with mixed families or when a business or trust is involved. This is where the help and advice from a Financial Adviser can be worth its weight in gold.

Can I Trust a Financial Adviser?

In New Zealand, all Financial Advisers are regulated under the Financial Markets Conduct Act 2013 and must be registered on the Financial Service Providers Register (a public register maintained by the Companies Office). These regulations, along with the requirement to comply with a recently updated Code of Conduct, ensure that Financial Advisers in New Zealand are competent, knowledgeable, and meet the industry standards required when giving advice to clients.

Are All Financial Advisers the Same?

While all Financial Advisers in New Zealand are regulated, not all Financial Advisers are the same or have the same experience. For example, there are advisers who specialise in helping people secure mortgages, advisers who specialise in investment and KiwiSaver advice and those that specialise in insurance advice. When speaking with a Financial Adviser for the first time, the adviser should be able to tell you what type of advice is within the scope of service.

I Have Been Declined Cover – What Are My Options?

Life Cover is most commonly declined due to the health status of the applicant and being perceived as too risky from the point of view of the insurer. However, that does not mean that you cannot reapply in the future with the help of a Financial Adviser. The benefit of using a Financial Adviser to reapply for cover is that an experienced adviser will more than likely know which insurer would be open to considering your application and they will also be able to use their experience to ensure your application and the information provided is presented in the most effective way. This will give you the best chance at having your application accepted by the insurer.

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