THE IMPORTANCE OF AN ENDURING POWER OF ATTORNEY IN NEW ZEALAND

What is an Enduring Power of Attorney (EPA) and why am I reading about in on a Kapiti insurance advisers’ website? Good questions, keep reading to find out.

If you become incapacitated in New Zealand you'll probably need an EPA to get an insurance claim across the line with minimum fuss. It's not just insurance you'll need it for though. An EPA is essential to ensure your wishes are carried out by someone you trust. In this blog, we'll delve into the significance of an EPA, why you need one, and the potential consequences of not having it. Specifically in the context of a New Zealand based life and disability insurance policy.

Understanding the Enduring Power of Attorney

So, what exactly is an Enduring Power of Attorney? Simply, it's a legal document that empowers someone you trust, (your attorney) to act on your behalf. In the event that you're unable to speak for yourself an EPA is vital. Whether due to illness or injury, if you are incapacitation, having an EPA ensures that any insurance claim can be made and your affairs can be managed according to your wishes. Remember if you are incapacitated you will likely have a claim on your insurance policy.

Why Would You Want One?

You're lying in a Wellington Hospital bed, unable to communicate your wishes regarding medical treatment, finances or insurance claim. Without an EPA in place, 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.

It is a huge relief knowing that if you are unable to speak for yourself your wishes will be honoured, your interests protected, your financial responsibilities met, the best healthcare decisions will be made, and your insurance claim can be signed for. An EPA grants your attorney the legal authority to act on your behalf.

The Repercussions of Neglect

So what happens if there is no EPA in place and you're suddenly incapacitated due to illness or injury?

It would fall to your loved ones to make decisions for you but they are legally not allowed. Those that care most about you could find themselves embroiled in lengthy legal processes. They could face unnecessary stress and financial strain as they navigate the New Zealand family courts to get guardianship to make decisions on your behalf. A process that can be time-consuming, costly, and emotionally draining.

Moreover, without clear instructions from you, disagreements may arise among family members regarding your care and assets. This can lead to unnecessary stress and strain during an already challenging time.

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.