As one year moves into another, it’s a great time to take stock of where you’re at, and where you’d like to be in another year’s time.
So, do you have any financial goals for the year ahead? Here’s how insurance can help you achieve them.
Like to save more money?
Saving more money is consistently one of the most common New Year’s resolutions. If you’re looking to cut your spending and put a bit more money into savings this year, it could be a good time to review your insurance policies to ensure you’re getting maximum value from the money you’re spending.
An insurance review can be an opportunity to reassess your needs, check for extras you may not need, and make changes where possible (for example, increasing the excess on your policy, if you have a good-sized emergency fund to cover the cost).
Looking at getting healthier?
There’s a reason the gyms are usually busy at this time of year – if you’re joining the crowd vowing to pursue a healthier future, your insurance may give you an incentive. If you quit smoking for good for at least 12 months, you can let the insurer know by signing a non-smoking declaration, and they will switch you to non-smoker premiums. You will notice a significant reduction in the cost of lots of types of personal insurance, including life and health cover – a great motivator to help you stay on track.
Growing your business or starting one?
This could be the year you indulge your entrepreneurial spirit. If you’re starting a business, or focusing on growing an existing one, getting an appropriate level of cover can help you protect your creation.
What cover you may need depends on your circumstances. If you have a business partner, you might want shareholder protection insurance, which is designed to minimize financial disruption to the business if a shareholder passed away or was unable to work due to a serious illness or injury, by providing funds to enable a surviving business partner to buy out the shares of the other partner. You may also need key person cover, which helps reduce the impact on your business if a vital team member (like a director, a sales manager etc.) is no longer able to work.
So, are you thinking about branching out into self-employment for the first time? Get in touch – we can help you make sure you have the right cover.
Buying a house?
The step into homeownership is a huge accomplishment for many New Zealanders. If you’re on the path to your first house, it’s tempting to put every spare dollar you have into the deposit fund. But this is only a good strategy as long as you stay earning and saving.
If something were to happen to your ability to continue working (say, for example, you suffered a serious illness), you could find you have to dip into your house savings and, before too long, you could end up back where you started. Some insurance types (like income protection or trauma insurance) could help you to stay on track when you’re aiming for a big savings goal. Talk to us about what first-home buyers need to know about insurance.
Is starting a family on your horizon? Now can be a good time to give yourselves an insurance check-up. Having children often triggers the need to take out life insurance, or increase the level of cover you may already have in place, so you know that your family will be financially looked after no matter what happens. And once your baby arrives, you may also consider adding them to your policies while they are small, for example to your health cover if you have one. Generally speaking, most providers allow policyholders to get health cover for babies within the first few months without underwriting (which means, any pre-existing conditions may be covered). Timeframes may be different across companies, but this option is usually available within three months of the baby being born.
We’re here to help
Are you getting on track for the new year? Get in touch with the friendly advisers at Advice4Life – we’d be happy to help make sure your insurance is supporting your goals.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.