Life is never the same after the death of someone close to you.
You're never prepared. It's a bridge you've never crossed, and there's no way to
rehearse what it will be like.
At Evergreen it's our business to ensure you're looked after at claim time.
That's why we make sure you get the right amount of life cover that buys you and
your family time when it really matters.
How much do I need?
Only you can determine the right level of cover. You don't want to be over insured,
but you do want to look after your loved ones when you're not around.
When you're deciding your level of cover, consider:
You may also want to consider leaving funds for your partner's retirement.
People insure their house because they can see it and touch it. And yet not many
house insurance policies are claimed on. Houses just don't burn down that often.
People's earning potential, on the other hand, disappears all the time. Cancer,
heart attack and stroke are three of the key killers - not of people, but of their
ability to enjoy the life they want.
Steady stream of income
Income protection insurance gives you a steady stream of income if you're unable
to work for an extended period of time. And unlike ACC it covers non-accidental
reasons for being off work, such as stress, the biggest cause of people needing
time off work.
How much to cover?
Income protection doesn't cover your total income; instead there are two options:
You can discuss the options with your adviser,
and they can advise the best option for your specific circumstances.
Agreed value or indemnity?
The difference between agreed value and indemnity is the amount of certainty
at claim time.
To get an agreed value income protection policy, you need to prove your income
when you apply (usually an average income over 2 or 3 years - helpful if
you're self-employed and your income fluctuates).
With an indemnity policy your income is proved at claim time.
Save yourself months on the public health waiting list, and get yourself back to work sooner.
The waiting list is not somewhere you want to be, particularly if you need to
take time off work. According to an international survey of GPs, New Zealand has
the highest proportion of patients facing long delays for elective surgery or hospital
If you needed surgery today, would you be able to pay upfront for private surgery?
Or would you be willing to wait, and maybe have to take time off work, for
treatment in a public hospital?
We usually recommend a medical policy tailored to give you 100% cover for hospital,
surgical, specialist consultations and tests.
How to waste your money on medical insurance?
Some medical insurance plans can be a waste of money, yet people like
them because they don't seem to cost much, and they give us a false sense of
Excess Options - how much you pay
Most insurance providers offer an option for you to pay an excess - in other words,
you pay up to a certain amount of the bill before the insurance pays the rest.
The higher your excess, the lower your premium. It's a trade-off between long-term,
ongoing, predictable costs (your premiums) and short-term, one-off, unpredictable
costs (your excess).
Excess options vary between companies and allow you to keep the cost of your premium down.
Look out for limits and maximums
Mortgage protection is a combination of many insurance products, like Life Insurance,
Trauma Cover, Total and Permanent Disability Cover, and Income Protection.
You can also get standalone mortgage repayment cover, which pays your regular
mortgage payments if you're unable to work because of sickness or injury.
There's an initial stand down period of at least 4 weeks before the payments start.
Mortgage protection is very similar to other standard insurance policies, but
because it's specifically to cover a fixed amount (the amount of your mortgage),
there's less flexibility.
The price for mortgage protection insurance is usually similar to standard insurance
policies. It's best to talk through your options with us to find what's best for you.
How much cover do I need?
Mortgage protection cover reflects the amount of your mortgage debt, or the
monthly repayments you need to make. In short, it depends. No two situations are
Trauma cover gives you a lump sum to pay off the mortgage, fly to Fiji or
just spend time with your family without having to worry about where the money
will come from.
Unlike income protection, trauma cover doesn't depend on whether you can work
or not. To qualify you simply have to survive 14 days after suffering a major illness
like heart attack, stroke or cancer. This kind of insurance is also known as Living
Assurance, Critical Illness Cover or Serious Care.
What does Trauma Cover include?
Trauma cover pays a cash lump sum if you suffer from a pre-determined health
condition and survive 14 days.
The three biggest conditions people claim for are heart attack, stroke and
cancer, but most companies cover a broad range of events, such as major burns,
major head injury, meningitis, and more ... some companies cover up to 42 conditions.
Why do I need Trauma Cover?
Medicine has advanced by leaps and bounds in the last 50 years. People used to
die from many major medical incidents, now people do survive. Consider this 52% of
male cancer patients will be alive five years later, and 59% of females will be alive
five years later.
It's great news for medicine, but it also means you need to be covered for the new
realities. Trauma cover gives you maximum choice at claim time.
It makes sense to spend a few dollars to cover your family if anything prevents you
from working for the rest of your life.
It doesn't happen very often, but it does happen. People who've spent a lifetime
developing skills and abilities to build a career on, suffer an illness or injury that
means they'll never work again.
Imagine having a major event - whether it's an accident, illness, injury, or
even mental illness - and not being able to earn an income for the rest of your
life. Total and permanent disability Insurance covers exactly that situation -
and because it's not a common claim, premiums are comparatively low.
How it works
Here's how Total and Permanent Disability works: if you suffer an illness or
injury that stops you working, and you can't return to the job you had before
your accident or illness ever again, you get paid.
What would happen to your business if it lost one of its key people?
Perhaps a shareholder, or your top (or only) salesperson. Or even you as the owner.
If you want your business to survive the loss of a person important to your business due to illness or injury - and who wouldn't?
- it makes sense to plan for the worst.
Evergreen helps your business develop an insurance plan to:
There are two main areas we look at:
Shareholder protection ensures the remaining shareholders can buy out a business partner
or their estate if they need to sell their shares in the company due to serious illness, injury or death
When you have shareholder protection cover, you will also need a buy/sell agreement -
an agreement that all shareholders sign before anything happens,
that sets the ground rules for what happens if a shareholder dies or is taken out of the business.
You can discuss a buy/sell agreement with your lawyer, or we can refer you to a lawyer we know and trust.
We can also provide Debt Protection Cover for shareholders to repay debts and other liabilities at the same time.
Key Person Cover
Key person cover allows your business to keep rolling, even when you lose someone that has a big impact on revenue.
It could be your top salesperson, or it could be the admin assistant who keeps everything running.
Whoever it is, if they're a key asset, you can prepare for the day they're not there.
Key person cover injects cash into the business to cover the costs of things like recruiting,
eliminating debt, and meeting contractual and capital obligations.
How much cover?
When you lose a key person, you've got several things to consider.
Most important to your cashflow is replacing the revenue that person directly brought in.
Then there's the time needed to find someone to replace your key person.
You can also incorporate the cost of recruitment into your cover.
This could include recruitment agencies, travel, housing and accommodation of family, training,
inducements and legal and contract expenses.
With key person cover, you need to consider the entire costs associated with your key person.
As with all insurance, you need to consider what you'll really need at claim day, not just the lowest premiums.
Lump Sum or Cashflow?
You can tailor key person cover to meet your biggest needs,
whether that's a lump sum to pay off debt, or a regular cashflow to cover running expenses.
Contact us to talk about your business insurance needs.
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