There are not too many words in the English language that cause as much divided opinion than the word ‘Insurance.' Just check out any comments section on any article on Stuff or NZ Herald that mentions the word insurance, and you can see the width and breadth of opinion on the subject.
In my 15+ years in the industry, I have dealt with hundreds of insurance claims from simple small medical claims to million dollar Life Insurance claims and overwhelmingly these claims are paid without questions and change people's lives in any number of positive ways.
So why do we not hear about these positive stories? I guess it is because scandal sells and something working exactly how it is supposed to does not a story make.
However, that does not mean that we should spend huge sums of money and insure every single thing that could befall us. It is important that we strike a balance between insuring what I call ‘true risk’ and not spending a small fortune in premiums.
It is important to note that too much insurance is also a bad thing. We can end up spending far too much money, become disillusioned and get to the point where we end up just cancelling everything, leaving ourselves and our families with no protection whatsoever.
The answer, as it is with most things in life, is to find a happy middle ground. A point where should the worst happen you and your family or your business are adequately protected but also at a level where you can bear the cost of the premium without too much trouble.
Unfortunately, it is often impossible to truly get perspective on the right balance of insurance cover and the cost of insurance yourself or with your significant other because both of you are ‘in the trenches’ and I believe it requires the perspective of an outside party to give that advice.
I guess that is where I, my colleagues and our industry come into play. Professional Advisers who can give you some free and impartial insight into your insurance needs and the potential risks you face, while taking into account your insurance beliefs and your budget.
Get good advice and review regularly.