Every so often, I stumble upon an insurance adviser who waxes lyrical on trauma insurance, otherwise known as critical illness insurance. They get really passionate about it. It seems to go beyond salesmanship –...
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.
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.
Note: I am NOT advocating for my own services here. I don’t recommend specific insurance products, help with applying for insurance and the underwriting process, or assist at time of claim. I refer clients...
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...
Many insurance advisers provide terrific advice. However, this isn’t always the case. Here are two “red flags” that the advice you’ve received is sub-optimal. The adviser has recommended the same level of life insurance...
I’ve said it before and I’ll say it again: insurance is a vital part of having your financial house in order. We need to manage the catastrophic risks to which we’re exposed, and insurance...
I’m a HUGE advocate for insurance. Most people who are working should have some form of personal insurance. But I’m also a huge advocate for self-insuring when you can. And a message I don’t see...
Many people are under-insured. That’s a fact. We don’t like thinking about worst case scenarios. “Sort out insurance” rarely gets to the top of the to-do list. Insurance can be expensive – especially when...
A popular idiom is that “a pound of prevention is better than an ounce of cure”. Broadly speaking, I’ve subscribed to this philosophy in my personal and professional life. I’ve been fortunate enough not...
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