There is always a need for insurance at some level at every age, it just depends on your situation. Once students leave school, they go on a variety of different paths. Some go on to further education, some go straight into the workforce and others start their own business or a family. There are five big life events that trigger a need for insurance and they are: 1. Getting married; 2. Starting a family; 3. Buying a property; 4. New job or promotion (increase in income) and; 5. Buying a business.
For less than 3% of your income, it’s a no brainer to protect the remaining 97%.
Think of yourself as a bank ATM, generating between $1,500 to $2,000 each week. The question is, if you could protect your ATM from breaking down with some form of insurance so it would continue to spit out $1,500 a week, then how much would you pay each year? Would you pay $5,000, even $10,000 each year to secure $78,000 (52 weeks x $1,500) in income from your ATM? That’s why income protection does and why it is one of the most important insurance products you can protect yourself with. You protect your ‘ATM’ from ever breaking down. The good news is, income protection is much less than $5,000 a year to protect an income like $78,000. More like $1,200 a year, $24 a week, or even less depending on your situation.
There’s several reasons why using an insurance adviser is better when compared to other ways of buying insurance. The real value of an adviser comes at claim time. Buying a policy directly from a bank or online means that you now have to go through the claim process yourself, up against an insurer who will only payout if the claim meets what is covered by your policy. An adviser is on your side and will have your best interests at heart. Having the correct insurance is important. Having the wrong type of cover or incorrect amount of cover could lead to disastrous consequences. Insurance brokers are specialists in insurance, and have an in depth knowledge of the insurance market and are able to provide professional, objective advice on identifying potential risks.
Having a broker can:
- 1. Work as a first point of contact to reduce embarrassment or cost
- 2. Be the first point of call with any change of condition and can let you know potential changes to your insurance
- 3. Get in touch with insurer to make sure the claim is claimable
- 4. Help complete forms and,
- 5. Ask for certain items to be ready when needed.
The advantage with having an insurance adviser is: Product Knowledge: You have a specialist on your side, someone who has an intimate understanding of the ever changing insurance products available. Claim Time: You have a professional adviser who has a personal relationship with the insurers to minimise any obstacles to your claim being processed. Experience: A MBS adviser will work with hundreds of clients each year. They can give you proven advice, often saving you money on your monthly premiums. Peace of Mind: At the time of claim, you have someone who will go to bat for you, working through all the details to leave you to recover or take care of your family.
Buying insurance from a bank can be a good idea in some cases. There are downsides though. Bank insurance products are not rated, which means they aren’t evaluated against the 15 or more insurance providers when it comes to price, value for money, payout of claims, number of conditions covered and much more. The value of any insurance policy, whether it is from a bank or not, comes at the time you make a claim. That’s what you pay the insurance premiums for. The likelihood of claim acceptance, speed of payout, service and peace of mind becomes very evident at the time of claim, but is hard to imagine at the time of buying insurance.
Insurance advisers are often cited as being more expensive than online insurance companies. This may be true in some cases, but often an adviser is no more expensive than the quotes you can get online. Once you factor in the service when making a claim, you tend to get better value from using an adviser, especially a MBS adviser. Buying insurance from an adviser is a bit like buying a plane ticket. For a simple return flight to Wellington, you probably don’t need a travel agent. But for a trip around Europe with multiple people, a travel agent can sort out all the complex timetables, arrange hotels, travel insurance and be a port of call should anything go wrong. And if they’re good at their job, they can often save you money (not to mention time) as well.
To get an initial review underway, we need to know your age, annual income, any previous medical conditions and whether you are a smoker or non-smoker.
Contact MBS, we will then contact your insurance provider. MBS will come up with all of the details that you need to know so that you don't have to do a thing which saves you time, hassle and the stress.
You will receive a policy document on completion of your proposal. This will include a memorandum of transfer (to change ownership should you wish at any time in the future).
Each year prior to the anniversary of your policy, your insurance broker would contact you with the option of a review of your policy. You will also receive a policy update from your provider. Your insurance broker would also keep you updated from time to time with electronic newsletters or letters on special offers and updates and launch of new products.
Annually would be the best option rather than every 3 years or so. A lot could happen in one year. It is good to get an update of where your policy is at, also considering if you need to change anything, i.e. cancel a product or add a product, for example:
- When getting married
- When having a baby
- When buying a home/business
- When starting a business
If it’s your insurance policy, then you own it. If you have a paper copy of the policy it should state who the owner is. The owner would decide the beneficiary, and the amount of insurance, or cancel it when they want. It is also possible that a spouse member could own a policy on your life. They would control the policy, but your life is insured. Business partners may sometimes own policies on each other’s lives to protect against the catastrophic effect of losing one partner. If you have a life insurance policy at work, the employer probably owns the policy on your life, but you may have certain rights such as naming the beneficiary or paying for additional coverage.
Yes. You may change the beneficial owner at any time after the policy document has been issued by contacting your insurance broker or insurance provider.
If you decide you do not want the plan you can cancel it within 14 days of receiving your policy document - (known as the free-look period). You will need to contact your nominated provider or insurance broker in writing to let them know that you no longer require the policy so that it could be cancelled. Any premiums paid during the free-look period are fully refundable from the nominated provider.
As soon as you think you may need to make a claim, contact your MBS adviser. (a) Your adviser will state whether your circumstances will warrant a claim application. (b) Paperwork will be sent to you to complete; specialist reports, doctors referrals, invoices, receipts etc will also need to be included with your claim. (c) Your adviser will check your claim form and pass onto the admin team at MBS who will send it through to your Insurer. (d) A claims officer will assess your claim and may request additional information directly from your Doctor and/or specialist. (e) When the claim has been assessed your insurer and the admin team will be in touch. (f) Once the claims has been approved, you will receive a refund less your annual excess and this will be explained to you in writing from the insurer.
Your cover would end when you inform your provider in writing, you stop paying premiums or the policy expires. In any of these cases your policy would be cancelled and no money is refundable or payable.
ACC CoverPlus Extra is an optional product that lets self-employed people and non PAYE shareholder employees negotiate a pre-agreed level of lost earnings compensation. This way you know exactly how much you’ll receive each week if you are injured and can’t work – whether the injury is work-related or not. If you choose ACC CoverPlus Extra, this will replace your standard ACC CoverPlus product. The key difference is the amount of lost earnings compensation you receive. With ACC CoverPlus Extra you get 100% of the amount you negotiate. Because you have agreed cover, you may begin receiving compensation more quickly. Whichever option you choose, ACC will provide assistance with treatment and rehabilitation costs.
Yes. Due to the processing of your application, the underwriter will be based on the answers to your questions. It is important that you disclose all relevant medical information that you are aware of on the application form. The underwriter may ask for further information or contact your doctor for a medical history just to be sure what your medical history is like.
In most circumstances underwriters are able to make an assessment from your submitted electronic proposal based on the information you have provided. However, if there are some health issues the underwriter may contact your doctor for further information, send a health screen nurse to complete an assessment or ask you to attend a full medical with your doctor usually at no cost to yourself.
Yes. If an underwriter requires further information i.e. writes directly to your doctor, sends a Health Screen Nurse for a consultation or asks you to have a full medical these visits are usually paid for by your selected provider.
No. Your insurance policy is not a savings plan; it is for insurance cover purposes only, therefore there is no cash value to it.
An insurance adviser gets paid through commission from the insurance provider that he/she signs a client with. However, it is free of charge for any MBS adviser to review or meet up with anyone that is concerned with getting insurance cover in place.