5 Insurance Mistakes Many Kiwis Make

Insurance mistakes can cost you a lot of money. Insurance is something many of us New Zealanders don’t think too much about. Often, it’s only because of an event that we even consider buying insurance. For example, when we get a mortgage, start a family, or lose someone we love.

Read this interesting article published on Stuff.co.nz about the New Zealand situation and how kiwis are chronically under-insured. Click here

The fact is, buying insurance isn’t always a simple purchase and there are a few things that can go wrong. If you’re reviewing your insurance options, look out for these five insurance mistakes that many Kiwis make, and consider how to avoid them.

Insurance mistake #1. Not getting insurance

One of the biggest mistakes that people make is putting off buying insurance for another day. Sometimes it just feels too hard to decide about which type of insurance you need. Or you may feel lost in all the jargon that often goes together with insurance paperwork.

But the fact is, the longer you leave buying insurance, the harder – and usually more expensive – it gets. 

Insurance mistake #2. Not having enough insurance

Insurance is meant to protect your family’s financial security should something happen to you. A policy lacking in coverage can leave your loved ones struggling financially when things go wrong. 

Being underinsured (having too little insurance) is almost as bad as not having insurance at all.

Finding the right amount of cover can make all the difference when it comes to your family’s financial assurance, so it’s worthwhile discussing your needs with your insurance adviser, who can help make these decisions easy.

Insurance mistake #3. Not disclosing all the necessary information

When you apply for insurance, the insurer asks for information that allows them to tailor and price your insurance policy according to your specific situation. Non-disclosure refers to information that you may not have thought relevant or may have deliberately left out at the time of your insurance application.

By not disclosing certain information – whether deliberate or accidental – could impact your claim when things go wrong. If the insurer decides your claim was caused by something that was already evident when you took out the policy, your claim may be turned down. That’s why we recommend that if you are in doubt, rather over-disclose.

Insurance mistake #4. Not reviewing your policy

Just as your circumstances can change, so too should your insurance policies evolve. 

At key stages of your life – when you get married, have children, take on significant debt like a new home or similar – it’s important you review your insurance plan to ensure you have the right amount of insurance cover and products for that stage of your life.

Insurance mistake #5. Buying insurance without good professional advice

Buying life insurance is easily one of the most important financial decisions you’ll ever make. After all, your family depend on you financially, so it’s important you make good decisions about the type of insurance cover that will take care of them when you can’t, and the best insurance company.

Reach out today for a free review. What do you have to lose? Email me click here.