As a proud sponsor of last year’s Financial Services Council’s “Money & You” 2022 consumer research series we were pleased to be involved with the third and final instalment of the latest research “Taking Cover”.

This research focuses on Kiwis’ attitudes to insurance. Here at Trustees Executors we aren’t in the business of providing insurances to clients. However, what we are experts in is providing financial and asset protection advice of which insurance plays a critical role. The importance of insurance is highlighted every day in the estates that we manage and in light of the devastating flooding events in the wake of Cycle Gabrielle is more important than ever.

5 Key Findings from the Research

1. Around one third of New Zealanders have life or health insurance, but the majority are uninsured.
2. The largest drivers of life and health insurance uptake are wanting peace of mind and worrying about family members
3. The main reason that two thirds of New Zealanders don’t have insurance is due to affordability.
4. Households with higher incomes are nearly four times as likely to have these insurances.
5. Those that previously had these insurances, but no longer do, no longer see the value in it or find it too expensive.

Access to Advice

A key highlight of this research that has stood out to us is the importance of seeking good financial advice. Insurance is a great financial security tool and can help to provide financial peace of mind and resilience. We can help you to understand and break down what your insurances include and what you are really paying for. In addition to this, we can also help to make sure that the insurance you have is right for what you need.

Why is Insurance So Important?

Insurance helps you prepare for the unexpected. The challenge for many people is they are paying for something they hope they will never have to use and often when times get tough, other expenses take priority. Life and health insurances protect you and your family if anything happens to you or your income, building resilience and peace of mind to weather the impact of an expected financial hit.

Taking care of yourself is extremely important. New Zealanders tend to get insurance cover on cars, houses, contents, but are less likely to insure themselves.

Knowing What Type of Insurance is Best

Insurance is not one size fits all. Policies need to be tailored to your needs and changed throughout your lifetime as priorities and health status changes. According to Massey University’s Dr Michael Naylor - senior lecturer for the school of economics and finance, he reports that “Most people in this country have inappropriate insurance… People don’t like to think about it. They buy it and do their best to not think about the things that could go wrong.”

Unfortunately New Zealanders tend not to use an adviser which often results in people having insurance that isn’t best suited to their needs. Financial Services Council NZ chief executive Richard Klipin stated that there is value in keeping up conversations with a financial adviser - “That shouldn’t be a ‘once and done’ conversation. It should be actively reviewed. Get good advice and guidance as you start your insurance journey and revisit this often to ensure it’s keeping pace with your changing needs.

Contact Us

If you are interested in knowing more about how getting insurance can help protect you and your family, please don’t hesitate to contact the team at Trustees Executors, either by phone on 0800 878 783 or by email at [email protected].