Newsletter - May 2012 (PDF)


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ISSUE 7 | 2012

Build your future wisely BUILDING A HEALTHY, balanced and happy life requires a little bit of planning and, like any successful recipe, there are certain ingredients you shouldn’t be without. Your plans, for you and your family, need to attend to both your physical and your financial wellbeing. In this issue of Lifelines, we look at a few of the basic building blocks, such as becoming properly insured, striving for a work-life balance, consolidating your debt and making your money work for you. What goals have you set yourself for 2012? If we can help, don’t hesitate to give us a call!

INSURANCE STRATEGISTS Aaron Baker P.O Box 147 678 Ponsonby Auckland 1144 Main: 09 360 7275 Fax: 09 360 7299 Mobile: 021 246 7870 Free: 0800 246 7800 Email: [email protected] Website: www.insurancestrategists.co.nz

BEGINNER’S GUIDE

RESEARCH HAS SHOWN FOR SOME TIME THAT NEW ZEALANDERS ARE UNDERINSURED, BUT WHAT IS NOT SO WIDELY KNOWN IS THAT OUR BUSINESSES ARE EVEN LESS WELL PROTECTED.

Taking care of business RUNNING YOUR OWN BUSINESS can be extremely fulfilling but also challenging. There are so many things to consider, and chances are you’re working long hours to make your business a success and keep your customers coming back. Naturally, you’ll appreciate the need to manage the risks you face every day. You’ve probably insured your premises, company vehicles, equipment and stock against fire, flood and theft. But have you stopped to think what would happen if you were to lose one of your most valuable assets: the people who make your business the success it is − and that includes you. When you’ve worked closely with a colleague for many years building a business, it’s easy to take for granted the essential and valuable part they play and to assume they’ll always be there. But what would happen if they became sick, were injured or even died? How would your business cope? Research has shown for some time that New Zealanders are underinsured, but what is not so widely known is

that our businesses are even less well protected. What’s more, the consequences can be greater than is the case with personal insurance. If something happens to a key person/ business owner, the impact can be disastrous. Not only can a business collapse, homes can be lost and, of course, employees lose their jobs. ACC research in 2008 showed that 1,880 businesses ceased operation due partly to an injury to the owner or a key staff member. So, while you may have a great many balls to juggle, and be working extremely long hours, you still need to take the time to make sure you are prepared for anything. Otherwise, your business and your dreams could literally disappear!

Speak to us today about protecting your business and your future.

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PERSONAL INSURANCE

Life: do you have it covered? LIFE WILL ALWAYS HAVE ITS UPS AND DOWNS, WHICH IS WHY IT PAYS TO HAVE A PLAN FOR BOTH THE GOOD AND THE NOT-SO-GOOD TIMES. THAT’S WHERE INSURANCE COMES IN. Most people insure their cars and homes, and understand the risks involved. However, not everyone protects their life, lifestyle and livelihood, or has the level of protection they really need. When was the last time you thought about the risks to you and your family? Personal risk insurance is designed to help you hold things together when life turns an unexpected corner. A range of products is available that can provide either a lump sum or monthly payments in the event that the insured person dies or suffers a critical illness or an illness or accident that prevents them from earning their usual income and maintaining their lifestyle and financial commitments.

Make life easier at claim time INSURANCE IS THERE AS A LIFELINE TO HELP YOU COPE WHEN THE UNFORTUNATE HAPPENS. Hopefully, you’ll never have to use it but, if you do, being properly prepared will make your life a whole lot easier at claim time.

To help you, here are a few tips: 1. Know your policies We all agree that insurance policy documents don’t make great bedtime reading! However, it’s important to set aside some time to read them thoroughly so that you have a good understanding of what you’re covered for. It may help to make a list of the companies with whom you have insurance and their contact numbers. It’s surprising the number of people who can’t remember who their insurer is, or what they are insured for, at claim time.

2. Have a backup plan Make sure that someone in your household or family knows where all your documents are kept so that, if anything happens to you, someone else can act promptly on your behalf.

3. Act quickly

So, can you afford not to have insurance? Think about these scenarios... A You are unable to work for six months due to illness or injury. Do you have enough savings to see you through without damaging your long-term financial goals? B

You, or a family member, needs to go to hospital to have a major operation (perhaps breast cancer or a heart bypass). Would you be prepared to wait on the public health system for treatment, with little choice in the hospital care you would receive?

C You die suddenly leaving your partner and children behind. Would they cope financially without an insurance pay-out? D You or your partner suffers a life-changing and traumatic event, such as cancer, a heart attack or a stroke and makes a slow recovery. Would you have enough savings that you could live on during recovery and adjustment without adding financial stress to the situation? IF YOU HAVE ANSWERED ‘NO’ TO ANY OF THESE QUESTIONS, THEN YOU ARE LIKELY TO BE ‘CARRYING’ SOME LEVEL OF RISK OR, IN OTHER WORDS, BE UNDERINSURED. A QUICK LIFESTYLE CHECK CAN SHOW WHETHER YOU HAVE THE RIGHT KIND OF INSURANCE FOR YOUR STAGE OF LIFE. WE CAN HELP YOU UNDERSTAND THE RISKS YOU ARE CARRYING AND PROVIDE ADVICE ON HOW TO BEST MANAGE THESE RISKS WITHIN YOUR BUDGET. SO CALL US TODAY!

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Phone your insurance company as soon as the event has occurred. This will ensure that everything is fresh in your mind so that you can give as much detail as is required. You may need to complete a claim form or obtain additional information, so making immediate contact will start the ball rolling. Most insurance companies will have an 0800 number and many operate extended business hours.

4. Online forms Can’t find a form? Use the insurance company’s website. Most will have claim forms to download, saving you time and entering your information into the queue quickly for claims processing.

5. The more information the better Give as much information as possible. This will save delays later on if the insurance company needs to come back to you for missing information. If possible, you may want to jot down some notes as soon as the event has occurred.

6. Tell your adviser Let us know what has happened. We can offer advice and, if necessary, liaise with your insurance company on your behalf.

HEALTH

Is it time for a change? WE ARE THE PRODUCTS OF THE LIVES WE LEAD. LIKE IT OR NOT, OUR LIFESTYLES, CAREERS AND PERSONAL HABITS LARGELY DETERMINE OUR HEALTH AND WELLBEING. It’s no secret that, as a society, we’re eating poorly, becoming less active and struggling to achieve that elusive work-life balance. This is reflected in the increased levels of obesity, stress and diseases like diabetes. Our daily routines and the demands we put on ourselves mean making the right lifestyle choices can be a challenge and one that requires some planning and commitment. You might think that you’re in pretty good shape and don’t need to make any significant changes. But the older you get, the more important it is to ‘keep on top of things’. Little wonder then that the most popular

New Year’s resolution is to ‘lose weight’ and ‘get fit’. If you’re not happy with the way you look or feel, there’s no time like now to make that change. Be honest with yourself: what could you do to improve your health and wellbeing? Do you need to lose weight? Are you getting enough exercise? Are you happy with your life? Fixing bad habits is not always easy and requires patience, perseverance, discipline and, most importantly, support. So if you have a friend, workmate or family member who might like to join you in your quest, all the better.

If you’re not happy with the way you look or feel, there’s no time like now to make that change. Be honest with yourself: what could you do to improve your health and wellbeing?

Why not start today? Set yourself a goal, draw up a plan – and go for it! To get you started, here are some tips to help you achieve that healthier work-life balance: • Be organised – use your work time wisely and build downtime into your weekly schedule. • Free yourself from chores. Think about ‘farming out’ time-consuming tasks at work and home, or suggest a ‘trade’ to workmates and friends, e.g. gardening for babysitting. • Make time for the gym or other regular exercise to give you an energy boost and kick-start your day. If you simply don’t have the time, squeeze in a walk or some time to yourself. • Make use of technology, and any business support available to you, to improve your time management. • Don’t let your job dictate your diet. Pack a healthy lunch, if necessary – and avoid the snack machine!

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MONEY MATTERS

ONE WAY TO MAKE YOUR MORTGAGE WORK HARDER FOR YOU IS TO HAVE SOME OR ALL OF YOUR HOME LOAN ON A FLOATING RATE IN A REVOLVING-CREDITTYPE MORTGAGE.

Put your mortgage to work for you! ONE THING IS CERTAIN IN LIFE: THE COST OF LIVING IS SURE TO RISE PUTTING AN INCREASING STRAIN ON OUR HOUSEHOLD BUDGETS. Most of us would like to manage our expenses more effectively, while minimising the impact of rising prices on our lifestyles and our long-term financial goals. So, if you want to put yourself back in the driver’s seat, why not start by making your home loan work smarter for you? Your mortgage can be a powerful tool for managing your finances and a few simple changes could go a long way to ‘easing the squeeze’.

Refinance to ease the burden There are a number of refinancing options available to help you manage your budget through the tough times. These include extending the term of your loan and reducing your monthly repayments, thus giving you some valuable breathing space. And, when economic pressure eases, you can of course reconsider your commitments.

Consolidate your debts If you’re struggling to meet your home loan, credit card, hire purchase or other financial commitments, you may wish to consolidate

these debts and minimise your monthly outgoings. One way to do this is to have some or all of your home loan on a floating rate in a revolving-credit-type mortgage. By using the account for all your day-to-day banking transactions, the amount of interest accruing is substantially reduced. While these mortgages are set at a marginally higher interest rate, you have the flexibility to make extra repayments when you can and, more importantly, to have your salary paid directly into the account to reduce the loan. If you use your credit card for all your everyday purchases, you can keep your account balance lower for even longer. And, of course, every effort you make to save money (e.g. take lunch to work each day, cut out the daily cappuccino, save on banking fees) not only means you are saving cash, but that you are reducing the interest accruing on your loan, as you are keeping more money in your loan account.

This publication may contain links to websites. Those links are provided for convenience only and may not be current. We are not responsible for the content or privacy practices associated with linked websites. These links should not be construed as endorsements of the owners or operators of those linked websites, or of any information, graphics, materials, products or services, referred to by, or contained on, those websites.

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The information contained in this publication is general in nature and is not intended as advice. It may not be relevant to individual circumstances and, before making any investment, insurance or financial planning decision, you should consult a professional adviser. Copies of our disclosure statements are available on request, free of charge.