| We all have different requirements for Personal Insurance throughout our lifetime. Generally when you have dependants and higher debts your need for insurance is greater; there is more to lose. We don't seem to have much difficulty understanding the need for insurance on our ‘things', but, let's face, we personally are much more important than items we purchase, even items as valuable as a house!
The aim of a solid insurance portfolio is to provide money at times of stress. The way to analyse your individual needs is to play the "what if" game.
What happens if you are:
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Disabled
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Seriously ill
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Unable to work for a long period
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Killed in an accident
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Diagnosed with a terminal illness
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None of these questions are easy to face, but it is a lot easier to ask the question and plan ahead before the event rather than after the event.
Survival Rate Statistics
Cancer
Breast, prostate and skin cancer are among those with the highest survival rates over five years, a milestone that in many cases means the cancer may have been cured. (Source: New Zealand Health Information Service)
Stroke
8,000 New Zealanders a year suffer a stroke - two thirds of these people survive. There are 56,000 stroke survivors in New Zealand, many of whom have a disability and need significant daily support. (Source: Stroke Foundation of New Zealand)
Accidents
Nearly 94,000 people suffered moderate to serious accidents in 2004, leaving them physically incapacitated for anything from a week to a month or even longer. (Source: ACC)
Age Expectancy
89% of newborn girls and 84% of newborn boys can expect to live to at least 65 years of age. (Source: Statistics New Zealand)
Average cost of Recovery
Direct and Indirect Costs of Disability for a major head injury average $500,000 per annum (sometimes for life). Of this, the public domain may cover, on average, 20% of this cost. There is a significant cost of illness recovery, not supported by public funding (especially in non-accidental illnesses). There is therefore a significant shortfall in funding for full medical treatment, recovery, alterations to lifestyle etc. (Source: Australian Department of Health)
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