FREQUENTLY ASKED INSURANCE QUESTIONS

Insurance can cause confusion for many and it's the type of subject we should all have some basic knowledge of. That is why I have compiled this Frequently Asked Insurance Questions page. If you have a question then flick it through as I will be updating this page regularly.

Why do I need life insurance?

Life insurance provides financial protection for your loved ones if you pass away. It can help cover debts, funeral costs, and provide ongoing financial support for dependents.

What is income protection insurance?

Income protection pays a portion of your income if you’re unable to work due to illness or injury, ensuring you can meet your financial obligations while recovering.

What does trauma insurance cover?

Trauma insurance provides a lump sum payment if you’re diagnosed with a serious illness like cancer, heart attack, or stroke, helping you cover treatment costs or lost income.

How much cover do I need?

The amount of cover depends on your financial obligations, income, dependents, and lifestyle. A tailored review with an adviser ensures you’re not over or underinsured.

How much does life insurance cost?

Premiums vary based on factors like age, health, lifestyle, and the level of cover you choose. We’ll compare options to find the most cost-effective solution.

Is health insurance worth it in New Zealand?

Yes, health insurance gives you faster access to private healthcare, avoiding long public wait times for elective surgeries and treatments.

What is the difference between level premium and stepped premium?

Level premiums are set for a period of time (e.g., 20 years, to age 80), while stepped premiums get more expensive every year. One works for long term cover, the other for short term cover.

Can I get insurance if I have a pre-existing condition?

Yes, but it may impact your premiums or coverage. We’ll help you find providers with fair terms based on your condition.

What happens if I can’t afford my premiums?

It’s important to talk to your adviser. We can explore options like reducing cover or finding a more affordable policy.

Do I need insurance if I’m young and healthy?

Yes. Insurance is more affordable when you’re young and healthy, and it protects your financial future if the unexpected happens.

How does a policy pay out?

Policies typically pay a lump sum or monthly benefit, depending on the type of cover and the terms of your policy.

How do I know I’m getting the best deal?

Working with an independent adviser like us ensures you compare multiple providers and find the right product for your needs.

What is TPD (Total and Permanent Disability) insurance?

TPD pays a lump sum if you become permanently disabled and are unable to work, helping you manage expenses and lifestyle changes.

What is the claims process like?

We’ll guide you through the process, ensuring you have the right documentation for a smooth and stress-free claim.

Do I need cover for my mortgage?

Yes. Mortgage protection insurance ensures your home loan can still be repaid if you’re unable to work or pass away.

What happens if I change jobs or careers?

Some policies are linked to your income or occupation, so it’s worth reviewing your cover when you change jobs.

Can I combine multiple types of insurance?

Yes. Many policies allow you to bundle cover for life, trauma, health, and income protection under one provider.

What’s the difference between group and individual insurance?

Group insurance (e.g., workplace cover) is shared across employees, while individual insurance is tailored to your personal needs.

How do I get started with a review?

Simply contact us at Cover Yours Insurance, and we’ll walk you through a personalised review to ensure you have the right cover in place.

The Answer I Need Isn't Here?

If your questions is not one of the Frequently Asked Insurance Questions above then just drop us an email or give us a call and I'll update this post.

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 Scheme. Cover Yours Ltd and Marc Hamilton’s disclosures can be found here or by emailing marc@coveryours.co.nz