Advice matters
New baby on the way? The importance of insurance

Got a baby on the way? It’s an exciting time for the family, and it can also be a good time to review your insurance needs. So, here are some key things to consider, according to our SHARE advisers.

For their health, and yours

Health insurance is designed to provide you with faster access to treatment and diagnosis, and depending on the policy, it may also include some level of cover for non-Pharmac funded medications (like certain life-extending treatments).

As a new parent, taking out health insurance can give you peace of mind that should anything happen to you, you won’t have to wait in the public healthcare system- meaning you could get back on your feet faster.

It can also be quite cost-effective and easy to add your child to your health insurance policy. By taking out health cover for them now, when they’re least likely to have developed pre-existing conditions – if they keep their insurance, they will have a comprehensive level of cover down the track.

Safety net for the family

When you have a baby, the last thing you probably want to think about is you not being around for them. But it may be more important now than ever to have the appropriate protection for your family, and life insurance is worth considering.

In those unexpected moments, life cover can help support your family by providing a lump-sum payment that can be used for a range of needs and costs. For example, depending on the insured amount, your loved ones may use it towards the household costs, to pay off the mortgage, or even cover the cost of your children’s education.

Protecting your income

If you have family depending on you financially, you understand how important it is to keep that flow of income coming in. But unfortunately, research shows that many Kiwis are not taking steps to protect this all-important asset from the unexpected. As many 89 per cent of households surveyed by the Financial Services Council in 2020 were underinsured when it came to income protection insurance.

As a new parent, securing your family’s current lifestyle and financial future is crucial. Income protection insurance can step in by replacing up to 75 per cent of your gross income if you’re unable to work due to an illness or serious injury not covered by ACC. Get in touch if you’d like to discuss this further.

For critical health events

Trauma insurance (or Critical Illness cover) is another powerful protection tool. And unlike income protection insurance, you don’t have to be off work to benefit from it.

This type of cover is designed to pay out a lump sum for a defined range of critical medical events, including (but not limited to) heart attacks, strokes, or cancer. While the covered conditions vary from provider to provider, trauma insurance policies usually cover about 40 serious and often life-threatening conditions.

Most importantly, you can use the trauma cover payout for anything as you please: for living costs, towards a debt or mortgage, for experimental treatments, or to afford some time off work. The flexibility it provides is priceless.

Like to talk?
Personal insurance is designed to protect you financially from life’s unexpected events, and it can be an important conversation to have when you’re planning an exciting future.

Get in touch with our SHARE advisers – we can help protect what you value most, and talk about how you might fulfil the dreams you have for your new family. 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.