Insurance (Income protection, not bike)

[Lias]

I know you can get insurance against being sick etc, but can anyone in the know tell me if you can get insurance like this:

I want insurance that will pay my loans / hps / bills / credit card / etc if I loose my job for any reason, be it illness, accident, being fired, redundant etc.. Anything apart from me quitting.

Cos my theory is the only way I could afford to live on the dole is if all my other bills except food/house/etc were paid.

If you CAN get something like that, would it be expensive? I canceled the insurance on my creditcard because they were charging nearly as much in insurance fees as they were in interest.. thieving bastards.

[jrandom]

Sovereign offer income protection policies that cover becoming 'unable to work in your chosen profession'.

Being made redundant or getting fired remains your own problem.

Regarding loans and HPs, etc, if you have them when you lose your job, WINZ will cover them in addition to your standard dole. AFAIK. At least, that's how it works on the DPB. Maybe you should have a baby, just in case.

Isn't Auntie Helen awesome?

[Cajun]

yes a number insurance policys you can get thru many different companys, talk to the people the bulk your insurance is thru, if they don't talk to a broker, who see who will give you best deal


my policy covers me for all that and redundant for 6 months(covers the mortages)

[alanzs]

Sovereign offer income protection policies that cover becoming 'unable to work in your chosen profession'.

Being made redundant or getting fired remains your own problem.

Regarding loans and HPs, etc, if you have them when you lose your job, WINZ will cover them in addition to your standard dole. AFAIK. At least, that's how it works on the DPB. Maybe you should have a baby, just in case.

Isn't Auntie Helen awesome?

Wow, so if I lose my job, even if I get fired, WINZ will cover everything? Hmmm..... :drool:

[MadDuck]

Sovereign offer income protection policies that cover becoming 'unable to work in your chosen profession'.

Being made redundant or getting fired remains your own problem.



Yep so do Tower and AMP among others. I have Income Protection and have done for many years.

I have heard it can be a challenge to actually get a claim accepted ... but that comes down to your cover and policy.

[Cajun]

I have heard it can be a challenge to actually get a claim accepted ... but that comes down to your cover and policy.

I know someone who has been payed out for past 10 years, acc pay him so much his insurance tops it up to what he was earning at time of accident.

[Oscar]

Be very careful.
If you buy a dud you won't know it until it's too late (i.e. you'll be sick).
I've seen so many of these thng go bad at claim time.
I used to be in the business (I worked for National Mutual Disabilty), my two cents worth is:


There's no such thing as broker in this market. Most brokers are either contractually tied to an insurer or favour one to gain higher commission.
Get an "agreed value" policy. It is much better to argue about what income is insurable now then find out when you make the claim.
Get quotes.
Find out what the Standard & Poors rating is. No use learning that the week before you got sick, the insurer went broke or left the country.
Ask for commission details. They are obliged to tell you. You'll be shocked.
Go long deferment (i.e. waiting) period, long benefit period (one that will pay you to gae sixty-five), rather than short deferment, short benefit policy.
Buy a non-cancellable cover. There are still some annual policies out there. Rule of thumb - Life Insurers sell non-cancellable covers.

[rainman]

Be very careful.

Yup, what he said.


Get an "agreed value" policy. It is much better to argue about what income is insurable now then find out when you make the claim.

Yup.


Get quotes.

Always a yup.


Find out what the Standard & Poors rating is. No use learning that the week before you got sick, the insurer went broke or left the country.

Yeah (although I confess I didn't at the time).


Go long deferment (i.e. waiting) period, long benefit period (one that will pay you to gae sixty-five), rather than short deferment, short benefit policy.

Mmmmmm. Mine had an 8 week waiting period and that was pretty inconvenient when I had to invoke it. Long benefit is a yup though.


Buy a non-cancellable cover. There are still some annual policies out there. Rule of thumb - Life Insurers sell non-cancellable covers.


Yup.

I've had income protection with Sovereign for ages and made a claim when I stuffed my back (temporary cover until I was fixed). They were very helpful and even took over the rehab stuff after surgery as ACC found me a bit confusing for various reasons. I'd recommend them, premiums quite low too. I had the sense they really cared about getting me back to work although I'm sure it was that they really cared about stopping paying me (which is fair enough). The 8 week waiting period was baked beans on toast territory, though.

[Oscar]

Yup, what he said.



Yup.



Always a yup.



Yeah (although I confess I didn't at the time).



Mmmmmm. Mine had an 8 week waiting period and that was pretty inconvenient when I had to invoke it. Long benefit is a yup though.



Yup.

I've had income protection with Sovereign for ages and made a claim when I stuffed my back (temporary cover until I was fixed). They were very helpful and even took over the rehab stuff after surgery as ACC found me a bit confusing for various reasons. I'd recommend them, premiums quite low too. I had the sense they really cared about getting me back to work although I'm sure it was that they really cared about stopping paying me (which is fair enough). The 8 week waiting period was baked beans on toast territory, though.


My comment about waiting periods v. length of benefit with reference to the premium. Having a four week wait and a two year pay out costs about the same as a thirteen week wait and a benefit paying to age sixty five, for example. Ask for all the options.

[Nasty]

Get it while you can .. if you can ... the thing is that as soon as something does go wrong you can be pretty much screwed ... read all the print .. fine and large .. and know what you are buying into ... hopefully you will see this as a long term thing and you don't \need to call on it!!

[scracha]

Find out what the Standard & Poors rating is. No use learning that the week before you got sick, the insurer went broke or left the country.
[/LIST]

Excellent advice. I've had 2 insurance brokers who literally left the building when I asked this question.

[Oscar]

Excellent advice. I've had 2 insurance brokers who literally left the building when I asked this question.

The ratings are on a Gummint website - I'll see if I can find 'em.

[Winston001]

Think before you leap - good advice above. These tend to be expensive insurances which is why not many people have them - and ironically it is often those who can least afford the extra expense who get talked into this type of cover.

I have it, includes a large lump ($400,000) life cover, and costs $4000pa. Waste of money except.....things happen and I have a wife and three children. I'd cancel it but am in the age group for heart attacks etc so keep on with it.

A young person would pay a lot less.

Having said that, in NZ we have ACC and good social security. You'd be better to keep the premium in your pocket and pay off your debts as fast as you can. Just my 2 cents.

[Oscar]

Pdf list of the financial ratings of NZ Insurance Companies:

http://www.isu.govt.nz/upload/40411/ratings-list.pdf

I personally wouldn't deal with a company that wasn't rated "A" or better.