Answering your insurance questions

At Plus4 we are passionate about serving our clients and making sure they have the money they need when they need it. We pride ourselves on providing support and making the rocky times a little smoother when life hits hard.

There is a lot people don’t understand about insurance, so we have tried to answer some of the most common questions we get asked.  

Do insurance firms payout?

Despite extensive evidence, some people still believe that insurance companies try to get out of paying claims. The insurance providers we at Plus4 choose to work with pay 100% of legitimate claims.

Legitimate is the keyword, and this can be impacted by non-disclosure or people trying to claim something that isn’t covered in their policy – either intentionally or by not understanding their policies. Read more about how to get your claim paid here.

Insurance is a highly regulated and transparent industry, which means it is easy for consumers to find out if providers are good at paying claims.

Can I afford insurance?

Can we be frank? It can be more expensive to not have insurance. If you lost your ability to earn an income, how quickly would you be in trouble? How long would you be able to pay your mortgage?

Working with an adviser means we can get to know you, gain an understanding of your values, life stage and what is important to you and work on finding an insurance solution that fits your budget. If you are experiencing hard times (there is a bit of that going around at the moment) don’t rush to cancel your insurance – there are things you can do reduce costs and keep cover, so it is always worth talking to an adviser first.

Do I need insurance if I don’t have an income?

Your ability to earn an income is your greatest asset, and as such should be well insured. However, sometimes a spouse is not in paid employment – this doesn’t mean they can’t or shouldn’t have insurance.

While society undervalues unpaid work, we all know the contribution it makes to a household. Considering the ramifications of a home-keeping spouse being taken out of action is a really important part of the insurance picture for your family.

If I am healthy why do I need health insurance?

As counterintuitive as it may seem, when you are healthy is the best time to get health insurance. Insurance providers need to manage their risk, so once you have had certain medical events it will impact what you are able to get cover for.

If you take out health insurance before developing conditions your premiums will be relatively low. But, more importantly, when things do start to deteriorate you will be covered for them.

Can’t I just rely on the health system?

We are lucky to have the healthcare system that we do in New Zealand.

However, the changing nature of our demographics means we are experiencing a strain on our public health services. We predict this will only worsen in the future as the population ages and there is a lower ratio of the working population to help fund the system. This is likely to result in longer waiting lists and more limited treatment options. Having insurance solves that for you, meaning you have more choice over when and where you get treatment, and over your provider.

Some policies also give you access to medications that aren’t covered by Pharmac. This is an important consideration because there are life-saving treatments and drugs available that the government don’t subsidise, meaning if you want it you have to pay for it. And if it is the difference between life and death, no one wants to have to choose between a chance at a cure and putting their family under huge financial strain. This is a situation many New Zealanders face, and that health insurance can solve. Not all health insurance contracts are the same, so make sure you talk to an adviser about the best policies for you.

Can I get insurance with my bank?

You can, but we would recommend considerable caution!

We advise caution on policies offered by banks, and highly recommend looking at the fine print. The policies offered by banks often fall short of the standards we expect from the providers we recommend to our clients. This includes non-standard exclusions, a lack of transparency, rushed application and disclosure processes, and sub-standard definitions of covered conditions. This all makes it much harder at claim time, and can result in nasty surprises.

Our advisers are passionate about getting their clients the best cover, and supporting and advocating for them at claim time.