We are now at the time of the year when its cold and wet, and there are no long weekends for a while. I hope you are all keeping well and warm over this period.
We have had some changes around the office with Stacey leaving Cura at the end of May. We will see a new friendly face in the not to distant future who will help out with the administration side of the business. For the foreseeable future I will be the only Financial Adviser at Cura but rest assured we have plans in place should anything ever happen to me so our clients will always be looked after.
Sarah
Often people will say “I haven’t seen any return on my investment” (when referring to personal insurances e.g. life, trauma, income, medical cover). As in, they haven’t made enough claims in their opinion to justify paying the insurance premiums over the years.
Insuring ourselves can get super expensive, particularly as we get older. This is because the risk of health events happening becomes more likely as we age.
What people forget when it comes to insurance, is if you haven’t had to make a claim, you are lucky. For those who have made claims, it’s because they have had someone pass away, or they have been diagnosed with a serious illness such as cancer, can’t work due to an illness or injury, or have needed a surgery or treatment. It’s not exactly something to get excited about!
Insurance is there to protect against the risks we can’t afford to cover ourselves. If we could afford to cover it, we wouldn’t need insurance. No one can predict what will happen in the future, so having the peace of mind that you and your family will be ok if something happens is worth it for a lot of people.
Insurance absolutely must be suitable for your unique needs, life stage and budget. You should only be paying for insurance you can afford to have. It is a luxury to protect against all of life’s risks, so we must choose the most important things to us to cover, with what we can afford.
Here’s a hypothetical to consider – Take a 35 year old who’s had medical insurance for 10 years. They would have paid approximately $14,500 in premiums over the past 10 years.
At 35, they are diagnosed with breast cancer and need surgery, chemo, radiation and non funded medication – The cost of the surgery is $30,000, chemo $40,000, radiation $8,000, and the non-funded medication, $175,000 per year.
Premiums paid = $14,500
Claims paid out = $253,000
Here’s a hypothetical to consider – Take a 50 year old who’s had $500,000 of Life insurance for 10 years. They would have paid approximately $6,000 in premiums over the past 10 years.
At 50, they have a heart attack and pass away.
Premiums paid = $6,000
Claim paid out = $500,000
The question you need to ask yourself is, what would happen if I didn’t have insurance to cover these events?
You can decide for yourself what risks to cover, and what risks to take.
The problem most of us face is we don’t have the amount of cash needed to fund these types of scenarios. In most cases, it makes more financial sense to insure against these risks.
If affordability is becoming an issue for you, please contact us first so we can help find a suitable solution. There are many ways we can help manage the cost and maintain protection for what's important to you.
We know that many are worried about money at the moment. It is a stressful time with sticky interest rates hanging around and increased living costs. One proactive thing you can do to help regain a bit of control is to get advice. Many of us don't realise what is available at our fingertips...
Many of us try to DIY it, and while valuable lessons can be learned, mistakes can also be made. Getting practical and tailored advice to suit your situation can be invaluable and help set you up on the right path for financial success. If you need help finding someone to help with your mortgage repayments or Kiwisaver and investments, we will be happy to point you in the right direction.
How to reboot your mind when it breaks down:
Remember, just as you wouldn't keep your computer running without ever restarting it, you shouldn't push your brain to its limits without giving it a chance to rest and rejuvenate.
So next time you feel like your mind is "breaking down" try these tips to give it a reboot.
We look forward to catching up soon, and in the meantime, if you have any questions at all, or would like to chat, please get in touch via [email protected], or by phoning us on 06 349 0089.
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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 development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.
Cura Advisers Limited holds a Full licence (Class 2) issued by the Financial Markets Authority (FMA) to provide financial advice. You can view our our disclosure information here. If you have any questions regarding this, please let us know.