7 ‘what ifs’ that everyone needs to think about.

7 ‘what ifs’ that everyone needs to think about.

Wouldn’t it be great to see into the future? If you knew what was around the corner, you could prepare ahead to balance the risk (if it’s something bad) or grab the opportunity (if it’s something good). This way, none of us would slip over on a hiking trail and we’d all win lotteries!

Time machines or special future-seeing goggles are still science fiction, but thinking about what could happen is part of modern life reality. Once you’ve identified the ‘what ifs’ that would have negative impacts on your life, it’s easier to put some financial protection in place to help your family if something was to happen to you.

1. What if you can’t work for a while?

There’s always the possibility that an illness or accident will take you out of the workforce for a few weeks, or even a few months. Think about the people you know, and you’ll probably remember a time when someone couldn’t work for a while. That’s why protecting your income makes a lot of sense, even if you’re only in your 20s. If you have rent or a mortgage to pay, as well as other people to care for, Income protection insurance could be a good back up plan. It could give you a monthly income to help cover daily living costs.  Fidelity Life Income protection cover pays up to 75% of your before-tax annual income until you’re able to work again.

 

2. What if you have less than 12 months to live?

If you’re diagnosed with a really serious illness, and have been told you have less than 12-months to live, you can request an early payout of your Life cover policy from Fidelity Life. An early payout would give you the chance to be involved with financial planning for your family’s future. It could also help you enjoy the time you have left.

You could add Fidelity Life’s Terminal illness booster to your policy. This is an optional benefit that you’d pay extra for and can pay you up to an additional $500,000 if you are diagnosed as terminally ill. This additional payment can help you achieve those wish list things and also provide some financial protection for your family.

 

3. What if you get a serious illness?

So many serious illnesses are survivable these days, thanks to modern medicine. But experiencing a major health event (like a heart attack or stroke) or getting a serious diagnosis (like cancer) will probably impact your income for a while. You might also want to pay for medical treatment that isn’t covered by the public health system, or make modifications to your house or lifestyle that may be required for some disabilities. To provide some financial protection if you suffer serious medical issues or illness, you can get a type of protection called trauma cover (aka critical illness insurance), which pays a lump sum if you’re diagnosed with certain conditions and its specified definition in the policy wording. More about Fidelity Life’s Trauma cover.

 

4. What if your favourite pastime lands you in hospital?

New Zealand’s outdoorsy lifestyle makes it easy to pursue passions like hiking, surfing, sailing, biking, kayaking and many others. But in the blink of an eye, your active lifestyle could be put on hold. If you have an accident having life insurance could be helpful.

For temporary situations, where you’ll recover, having income protection insurance may keep money coming in. If you became permanently disabled and were unable to work again, TPD cover provides some financial relief. TPD stands for 'total and permanent disability' cover and it’s designed to reduce the financial problems that could happen when you can’t work anymore. An approved claim means you will receive a lump sum that you can use for any purpose.

 

5. What if you weren’t around anymore?

Nobody likes to think about dying and the consequences for those you leave behind. So, rather than over-focussing on what would happen if you (and your income) weren’t around to support your family, you could choose to balance the risk with some carefully planned life cover. Also known as life assurance, life cover pays a lump sum if the insured person dies.

 

6. What if you can’t pay your mortgage or rent?

Nobody likes to think about the prospect of not being able to pay their rent or mortgage. But you can put protection in place. With Fidelity Life’s Monthly mortgage repayment cover there’s less chance of getting behind with payments if you can’t work due to sickness or injury. This type of mortgage insurance protection can offer you some security to allow your monthly financial commitments to be covered while you’re sick or injured and can’t work.

 

7. What if your small business gets hurt because you have an accident?

Sole traders and small businesses represent 97% of all businesses in New Zealand*. We’re a nation of people who love to work for ourselves. However, being your own boss doesn’t come with the same security as being an employee. If you’re a small business owner, you’ll know that input equals income. So when you’re not able to work, because you’ve had an accident or prolonged illness, your business may be affected. An option to consider is Fidelity Life Business expenses cover, which is designed to pay a monthly benefit to help with covering business costs.

 

Want to talk it all through with an adviser? 

A good way to put some financial protection in place is to work with a financial adviser. An adviser can help you to work out which of life’s risks you may need to plan for.

 

DISCLAIMER: The information contained in this article is a summary of the key points of the insurance cover(s) mentioned and is general in nature. This article does not constitute a financial advice service. All covers are subject to the definitions, standard exclusions/limitations, terms and conditions contained in the full policy documentation which is available from Fidelity Life or your financial adviser who holds a Distribution Agreement with Fidelity Life. All applications for cover are subject to underwriting criteria.

 

*mbie.govt.nz – ‘Small business’ 2020

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