POWER OF ATTORNEY MEET INSURANCE POLICY

What is an Enduring Power of Attorney (EPA) and why am I reading about in on an insurance website? Good questions, I am also recomending that if you want full advice on EPA's you should speak to a lawyer.

An EPA grants someone the power to make decisions on your behalf if you become incapacitated. An insurance claim will need a signature and if no one has permission to sign on your behalf there is no claim. For all major decisions you'll need an APA but I'm sticking to the insurance angle for the next 90 seconds. Here are some more of the things an EPA will do and it's from the government, so more providence than me. Remember lawyers for EPA and Insurance adviser for the insurance.

Understanding the Enduring Power of Attorney

An Enduring Power of Attorney is a legal document that empowers someone you trust to act on your behalf. If you're incapacitated an EPA is vital. Someone with legal authority is going to need to sign an insurance claim.

Why an Enduring Power of Attorney and Insurance Policy?

Even with the best insurance policy in the whole of New Zealand if you can't sign and no-one else has the power it could take months in court. Without an EPA your loved ones could find themselves tangled in a bureaucratic nightmare. They would be unable to access vital information or make decisions on your behalf. Ever tried to get a company to answer questions about a spouses account without their express permission? You won't get very far. Having an EPA ensures that your affairs are handled smoothly and according to your wishes, even when you're unable to articulate them yourself.

The Repercussions of Neglect

What happens if there is an insurance policy but no EPA and you're suddenly incapacitated due to illness or injury?

Your loved ones won't beable to act on your behalf, there will be no-one to sign paperwork. Those that care most about you could find themselves embroiled in lengthy legal processes. You took insurance out to alleviate stress for the family, this will add to it. The New Zealand family court might not be who you want acting on your behalf.

Without clear instructions from you there may be family disagreements, most people can imagine the drama and who might start it. The chances of an argument increase if there is money involved and while arguments are heard your wishes aren't being met.

The Bottom Line

New Zealanders are renowned for their spirit and resilience, so it's essential to equip ourselves with the tools to navigate life's twists and turns. You will probably have life, trauma, or income insurance already and this is why an Enduring Power of Attorney is your next step.

An EPA is more than just a legal document - it's an essential to ensure that our wishes are honoured and our interests protected by people we trust. No one wants the courts to be making decisions on their behalf.

So that's why a Kapiti insurance adviser is interested in publishing a blog on an Enduring Power of Attorney. You can find out what the New Zealand government has to say about it here.

Cover Yours Ltd (FSP769531) and Marc Hamilton (FSP306046) are registered Financial Service Providers and you can search the register here. Marc Hamilton is a member of the FSCL Disputes Resolution Service. Cover Yours Ltd and Marc Hamilton's disclosures can be found here.