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Identifying and addressing insurance gaps

Do you, or your loved ones, have an insurance gap?

Insurance is a key part of our financial lives, but it can sometimes be overlooked as part of our day-to-day planning. When we’re focused on everyday costs, paying down debt, or building investments, insurance can slip to the back burner.

An insurance gap can leave you financially exposed, so it’s important to review your cover and address any gaps early – ideally with the support of your trusted adviser.

What is an insurance gap?

An insurance gap is an area where your protection doesn’t fully cover you, is no longer a suitable fit, or where you don’t have any protection at all.

If you have debt but no income protection insurance, for example, that could be an insurance gap that leaves you exposed to financial hardship should you become ill and unable to work. If you have house insurance but have not insured your contents, you likely have a gap that means you are exposed if there is damage to your home or a burglary.

Taking steps to identify these insurance gaps means you can address them before they become an issue – not when something happens that makes you wish you could have claimed. Your adviser can guide you through this process to identify where you might need more robust protection.

Here’s how to find the gaps

If you’re wondering whether you might have any insurance gaps, here are some key points to consider:

  • Income protection: If you were not able to work due to illness, do you have insurance that would pay your bills, including your rent or mortgage payments? ACC will usually step in if you’re injured in an accident but does not provide assistance for incapacity due to illness.
  • Financial goals: Are you working towards a big financial goal that requires you to have a steady stream of income? Could that be jeopardised by a health event?
  • Family security: If you were to pass away, would you want to leave money behind to help your family? If so, do you have that available or would that need to come from insurance?
  • Health cover: If you had a health condition that needed treatment, but the public waiting list was long, would you have insurance that could help you get private care much sooner than waiting for your turn in the public system?

Sometimes thinking about your assets – including your income – and how they are protected can help you to identify any potential gaps. It’s often the case that New Zealanders are well protected when it comes to their physical assets but less covered when it comes to things like their income or catering financially for loved ones in their absence.

You might also need to think about whether there have been any changes in your circumstances since you took out your existing cover, as this could change how appropriate it is for you. Your advisercan work with you to ensure your policies stay aligned with your circumstances.

We can help

Navigating insurance can be complex, and that’s where professional support makes all the difference. Your insurance adviser has the expertise to identify gaps in your coverage and ensure your protection is appropriate for your needs – now and into the future.

If it’s time for a thorough insurance review, get in touch with your SHARE or Newpark adviser today. Their knowledge and guidance will help you confidently address any gaps and ensure you’re fully covered.

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 developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.