Category: Insurance

Strategic insurance advice versus insurance product advice

Most personal insurance advice conflates two very distinct types of advice: strategic insurance advice, and insurance product advice. When it comes to insurance product advice, I’m comfortable with advisers being remunerated via commission. When it comes to strategic insurance advice, which relates to whether clients need cover and what level of cover, I’m less comfortable with commission-based remuneration models. In this article, I explain the difference and the basis for my reservations.

I also introduce my course, Insurance for Savvy Kiwis, which is available here.

Insurance – why I prefer stepped premiums over level premiums

As a general rule, I say “no” to level premiums for personal insurance. Your insurance needs should reduce over time, so if you select level premiums, you may end up locking yourself into unnecessary insurance, gambling for a “win” rather than using insurance to manage risk. Take the stairs: use stepped premiums. 

Do I need health insurance?

Strictly speaking, no one in New Zealand needs health insurance. New Zealand’s public health system provides immediate care with respect emergencies. As Martin Hawes says, “if your condition is life-threatening, health insurance is probably...