My wife Emma came home one day in August 2010 and said "I want to move to Auckland and I can get transferred with work." A month later, we were moving our possessions into our new place on the North Shore… One month! Talk about thinking it through. We signed a one year rental agreement, as that is how long we planned on staying...
Smash cut: end of 2013 sitting at the dining table in our own home, I was thinking of the past year. It has easily been the most eventful year of my life - turning 30, travelling to Europe, buying our first house and the most exciting part of all… expecting our first child; so much for our one year rental!
Every day I sit with clients in the same position as me - married, buying a house or starting a family. I provide them with information to protect what they value, and with everything that is happening in my life now, it's time to take some of my own advice.
With pen to paper, I reviewed my own insurance. Income Protection - check, Medical Insurance - check, Trauma and Life Insurance - ?? Then it hit me, my trauma and life insurance benefits will need to be increased… and the sooner the better as my family is at risk now, not just when our baby is born.
The reason why I have Income Protection is to cover my living expenses if I am sick or injured and can't work, I would still need to fund my lifestyle, pay my mortgage, pay my bills and put food on the table.
The main reason I have medical insurance is because if something happens, 1) I don't want to sit on the public waiting lists for months (or even years) and 2) I don't want to have to pay for my treatment. I recently had an operation on my nose and got into see the specialist pretty quickly, at a time that suited me.
Even though I am relatively young, albeit a bit grey, illness does not discriminate. My Trauma cover is set up not as a windfall to buy a boat or Ferrari, but to provide living expenses for my family which is the last thing I want to worry about if I was seriously sick (although a Ferrari would be nice). I know that if I got cancer, I would want to have time to spend with my family, rather than stressing about getting back to work to start earning again.
A lot of people have life insurance; for me it is important because I own a home. Initially I wanted to have enough life insurance to cover my mortgage if I died, so my wife would be in a secure position with a debt free home to live in. Now with a child on the way, I need to think about increasing my cover to make that not only can the mortgage be paid off but that there is some money left over so that can carry on, without any financial burden.
I also have part of my life insurance as Level to age 80 cover. I can take advantage of my lower premiums now and "lock" them in until I am 80, avoiding the substantial hikes when I am old and broken. I have only locked in the part of my life insurance that I plan on keeping for a long time.
With the increased financial responsibility that comes with bringing a child into the world I need to protect my family should the unexpected happen. What if I died tomorrow? What would happen if I got sick and couldn't work? … I have said this to many people, but saying it to myself is quite scary!
Life changes so rapidly we often forget how it can affect our insurance. That's why it's important to regularly review your cover to make sure it accurately reflects your changing needs.
At BRAVEday we regularly stay in touch to ensure you continue to have peace of mind knowing that you have the right protection in place, but if any of the below situations apply to you then please contact us to discuss your insurance needs.
Have you:
- Had a baby or adopted
- Purchased a new home or investment property
- Had a relationship change
- Changed jobs
- Retired
- Increased or decreased your mortgage
- Started a new business
Often, minor adjustments to your existing policy are all that is required to bring it into line with your current situation.
