Seasons Greetings from Insurance People

As another year nears an end, looking back reveals a period of mixed signals, the lows of an economic crisis, the highs of an exciting 6 weeks of world cup rugby and then the election! What will we all do now?

Thanks to you all for your support and for helping to make this year rewarding from allowing our team do what they enjoy most ~ making sure you are financially sorted & well protected.

Merry Christmas, happy & safe holidays to you and your family.
We look forward to seeing you in 2012.

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Office Hours
Below are the office hours over the christmas period; in case of emergency feel free to call freephone 0800 823 823 anytime for further information.

Friday 23rd December ~ Closing 3pm
Wednesday 28th to Tuesday 3rd January ~ Closed
Back to business from Wednesday 4th January 2012 ~ 8.30am to 5pm
Office Freephone 0800 823 823

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Fire & General Insurance - Claims & Help
For AON Stylecover Insurance Claims or Queries
freephone 0800 505 152
For Lumley Insurance Claims or Queries
freephone 0800 781 782

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Contact your adviser
To find your adviser's details click here

EQC Levy increase for all...

IMPORTANT ANNOUNCEMENT
From 1st February 2012 our EQC levies are on the rise... which to be fair we've been expecting after the Christchurch earthquakes.

If you'd like to read the announcement on the "Beehive" website click here >>>

What it means
As a home owner, right now we pay 5cents per $100 of insurance cover capped at a maximum of $69 per year (including GST).

From 1st February 2012, this will increase to 15cents per $100 of insurance cover capped at $207 per year (including GST).

This increase applies to both House and Contents policies only NOT your car or personal life, trauma, medical etc.

The coverage that EQC provides remains unchanged, that is, it will continue to cover the first $100,000 (plus GST) for house damage and the first $20,000 (plus GST) for contents damage for insured residential properties in the event of earthquake, natural landslip, volcanic eruption, hydrothermal activity and tsunami.

IMPORTANT
The EQC levy applies to your House and Contents policy no matter which company you have your insurance with; this increase is set industry wide! The EQC levy is a portion of your overall monthly/annual premium which each insurer collects on behalf of the Government.

Do you need to do anything?

No. You will receive notification from your insurer confirming the levy increase and exactly what the increase is to your premiums.

Yes. Contact Insurance People if you would like to REVIEW your insurance and take a closer look at what you are paying in premiums.

Yes. Contact Insurance People if you would like a free QUOTE on your current house and contents!


Get more information from Insurance People ~ freephone 0800 823 823

ATTENTION:Self Employed

Want to save money on your levies?
If you are self employed or palnning to become self employed you'll know that one cost you can not avoid is your ACC levies... for most its like one of those 'grudge' costs, something we have no choice on - or do you?

Yes. Actually, when it comes to your ACC levies you do have a choice to decrease or increase your levies. Its called ACC CoverPlus Extra and the team of advisers at Insurance People are now fully trained and skilled in this area. (Check out our July blog for more details...)

As each persons situation is completely different to the next, we're encouraging all self employed to make the call, contact us for a chat and to see if your ACC is right for your current circumstances.

Do you know...

How much you pay in levies?

The amount you'll receive in case of an accident?

What 'offsets' means and the effect this may have on you?

If you have the right ACC job classification code? If it is wrong, it could be costing you!

Things you should know...

ACC will only pay out if you have an accident - it does not cover illness.

Mortgage Repayment insurance covers you for illness and accident and does not affect your ACC.

Income Protection gives you choice and certainty of income if unable to work due to illness or accident.

You do have a choice on how much you pay in ACC levies.

Request an ACC review here.
PS - one of our first ACC reviews identified an incorrect job classification code, that person received $14,000 back in over paid levies! We can't promise that for everyone, but is has proven one thing for sure - its worth while getting an ACC review done!

Disclosure Statement available on request and free of charge.

Our flat lining OCR

You may ask why are we writing about the Offical Cash Rate on an insurance blog. Well, for all of you that read and follow our blog some of you just may be home owners, in fact we're pretty sure you are.

For those of you with a home and mortgage repayment cover or income protection or landlords protection insurance, house, contents and car... here is a little lead in to our sister blog in the mortgage area that we thought may be of interest.

OUR FLAT LINING OCR
From this morning's OCR announcement by Governor Bollard it seems our OCR is to flat line at 2.5% for just a little bit longer. Welcome news for home owners that are currently sitting on the floating rate. more>

Things to consider in the FIXED vs FLOATING debate:

• If interest rates rise do you have money in your budget to cover it?


• Are you on a fixed income and financially stretched as it is?


• Do you have the income to pay extra off your mortgage now?


• Do you want to repay your mortgage as quickly as possible?


• Is certainty of your budget critical?


• If interet rates increase - how far could your budget stretch?

If you want to know more - click here
or email us to request a mortgage review.

Disclosure Statement available on request and free of charge.

We're on TV...

We want you all to know that our 'sister' company Mortgage People is currently on TV One and TV Two... you can see the advert right here:

All too often we encourage you all to review your insurance to make sure that your cover is relevant as life changes... what about your mortgage and debts?

Do you need advice in that area? Do you have a question about home loans or interest rates?

• Are you a first home buyer?


• Looking to refinance your existing mortgage?


• Need to consolidate your debts?

If you are a home owner who has a mortgage do you have Mortgage Repayment Insurance? Do you have Income Protection? A good question for you - how long have you had your mortgage? And when was the last time you checked your insurance to make sure you have enough cover just in case the unexpected happens to you?

QUESTIONS? Ask Katrina here

Maybe you know someone who needs advice about there mortgage and/or insurance - share this blog and our details... we'd love to help!

Disclosure Statement available on request and free of charge.

ACC CoverPlus Extra

Paying your ACC levies is one of those mandatory and grudge costs of being in business ... but how well do you understand what you are paying for?

Below we explain ACC CoverPlus versus ACC CoverPlus Extra, the key when reading through this is to remember, this is intended as general information not personal advice you would need to review your own situation to decide what is best for you.

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When you are self employed, or a shareholder employee in your own company, you are automatically registered with ACC on 'CoverPlus'. ACC also offers 'CoverPlus Extra' which is not widely known but potentially has the ability to save you hundreds and in some cases thousands of dollars on your ACC levies.

ACC CoverPlus is not necessarily the best solution and can be limiting at claim time - which of course is not something we are made aware of until we need it most! ACC only provides for replacement income in the event of being unable to work due to injury - it provides nothing for being unable to work due to sickness.

Standard ACC CoverPlus provides 80% of your lost income due to injury, based on the last 12 months taxable income for your business and only to a maximum of $89,335pa in cover. This taxable income may have acutally been less than the amount which dictated your ACC levy too, meaning you are paying for cover you possibly may never get! This does start one week after being off work granted you can satisfy all the pre-requisite proof of income that quickly!

BUT, may not pay at all under the following circumstances:
1. if you have staff or business income that continues to pay you while you are off work.
2. if your injury can be deemed a 'degenerative condition' and only exasperated by the injury.
3. if you return to work even for the smallest amount of time, it will cease.
4. if you split your income with your partner for tax purposes, you only get 80% of the split declared under your name.

ACC CoverPlus Extra key features include:
Agree to a value you are happy to receive from ACC at claim time - knowing that you have in place income protection and/or mortgage repayment insurance.

The option to dial back to a minimum of $21,216pa - giving you certainty that this as a weekly amount kicks in 7 days into your injury with no need to prove your income!

Will continue to pay IF...
1. you have staff or a business that continues to make income without you!
2. if you return to work for just a few hours a day.
3. as a fixed individual level of cover that has been agreed, regardless of how your income is presented for tax purposed.

THE MYTH around ACC is that by paying a levy we will receive a guaranteed Government service - when in fact your ACC levy is like an insurance premium, which requires proof of income to have the insurance actually provide for you at claim time.

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Business best practise would normally include some form of annual business planning, and this should always include risk management - which means, a review and considered approach to maintaining adequate protection in the key areas of your business.

Make sure that when the unexpected happens you, your business, lifestyle and family are covered!

EXAMPLE comparing ACC CoverPlus with ACC CoverPlus Extra

Self employed consultant earning $100,000 taxable income

ACC CoverPlus @ 80% = $1,538 Weekly Compensation & Annual Levy $2,677
ACC CoverPlus Extra dialed down to minimum $21,216pa = $408 Weekly Compensation & Annual Levy $991
Savings of $1,686 off the ACC Levy!

It may not be in your best interests to dial back but you won't know until you go through a review - find out today! Talk to a Registered Financial Adviser who not only specialises in insurance for the self employed but also knows all the in's and out's of ACC - find out if they are ACC agents, together with your Accountant it may be worth taking a closer look!

If you've found this information useful please fee free to pass it on! If you have any questions email us or phone 09 360 5622.

Disclosure Statement is available on request free of charge!

Having an Insurance Adviser on your team

The role of an Insurance Adviser in your arsenal of financial service providers is vital.

Just like when you engage the services of an Accountant to advise on your finances, tax and book keeping records; and a Lawyer to advise on your legal requirements; an Insurance Adviser is vital when considering the right insurance cover for you, your family and your business.

There are many individual insurance advisers and adviser groups in New Zealand, the key is to find someone who you are comfortable with and confident in their level of knowledge, care and skill.

If an adviser is impartial it means they can deal with most, if not all insurance companies in New Zealand on your behalf, are not tied or employed by any one insurance company and are free to place your cover with the most appropriate insurer for you.

A quality insurance adviser should always follow these STEPS:

1. Create a good rapport and working relationship with the client so they are comfortable in talking through all aspects of their personal and financial well being.




2. Complete a needs analysis to understand their clients financial situation, financial needs and goals and importantly, their tolerance to risk.




3. Analyse the client information, analyse and research for the best options that are relevant and available in the market place.




4. Present the research in every day language, in an easy to understand format and work through the best options for the clients needs and wants.




5. Manage the application process with the chosen insurance company or companies to ensure a smooth implementation of agreed recommendations.




6. The last step is vital - this is an ongoing promise to regularly review once the cover is put in place. Over time situations change and along with it the client and families needs, wants and goals.

In our experience very few people make sure their insurance keeps pace with their lives, so for many they may be under insured now for their specific circumstances or have cover that is now irrelevant or may not actually be able to be used in the event of a claim.

The insurance industry is constantly changing, with new products coming to the market, changes being made to existing products, pricing structures, mergers between Insurers and more recently new Insurers popping up to challenge the market.

An Insurance Adviser should be in contact at least annually; or more often if preferred or needed to make sure their client's circumstances haven't changed and to update on any changes that might be of benefit to their client.

Step 7 - This step is not necessarily always part of an advisers process, or the advisers involvement may vary and that is a claims service.

Ideally all clients would want an Insurance Adviser that will actually manage your insurance claims from start to finish and everything in between. When engaging with an Insurance Adviser a client should be advised on how to start the claims process if and when the need arises.

The last thing anyone would want is to be a 'number' in the claims queue at an Insurer at such a demanding and stressful time. With an Insurance Adviser who offers a full claims service you have someone on your team, that has taken the time to understand your personal circumstances, kept updating you and your covers over time and is there for you when you need them most - claim time.

A dedicated Insurance Adviser should be ready to assist you and your family at every little change and event that affects you, but especially at claim time when it matters the most.

Your Insurance People Adviser is happy to discuss this with you, feel free to contact us anytime.

If you've just found us via this blog, and want to know more please freephone 0508 PEOPLE (0508 736 753) or email us a question now and we'll come back to you shortly.

Want to check us out before you talk to us?

click here for Insurance People OR click here for Mortgage People

This blog was written by Sarah Williams, Registered Financial Adviser with Insurance People.

Financial Advisers Act 2008

For those of us in the financial services industry regulation has been at the front of our minds for a long time now and we are just about there, from 1st July 2011 the Act is fully in force!

What's this all about?
Well, the purpose of the Act says it all really - "This Act is to promote the sound and efficient delivery of financial adviser and broking services, and to encourage public confidence in the professionalism and integrity of financial advisers and brokers."

Advisers from Insurance People have always worked to the vision and mission of our founding Directors, and interestingly in a way they define what the Act is all about...

"Our group continue their focus on educating our clients on all products and services available to them; providing the best possible advice and direction to ensure each individual meets their goals."

"We strive to ensure our original mission is never lost, in essence it has always been about financial education, that is, we always wanted to help people - giving client the high level of service and knowledge they wanted, needed and deserved."

In fact, regulation means a whole lot more to both clients and advisers. For example, if we are to give advice now we must be registered on the Financial Service Providers Register. This is a public register that anyone can view online via the companies office website (click here) to ensure that the adviser they have is abiding by the new laws. You'll find all of us on there, just search by adviser name.

ARE YOU AN EXISTING CLIENT?
If you are an existing client of Insurance People, then you'll be used to how we do things... going forward you may notice a few changes. Don't worry you'll still get the good advice and service that you've always received but there may be a few new documents or forms that we go through with you. This is all about making sure we not only take the most appropriate care in providing you advice but also that we are held accountable to deliver the best possible service that you need, want and deserve.

We'll be commenting from time to time on this to help you better understand and of course, if you have any questions do not hesitate to contact your adviser or email us anytime.

If you think this information would be of value to someone else, please pass it on!

Ask Katrina...

Do you have an insurance question?
From time to time we will blog about various products and happenings within the insurance industry; if there is something that you would like to know - email me and I will respond to you personally and as appropriate with your permission will blog the scenario if its something that we should all know!

Areas of expertise include:

• Fire & General - house, contents, car, boat, bike, landlords protection



• Commercial - key person, professional liability, business insurance



• Medical Cover



• Total & Permanent Disability (known as TPD)



• Critical Illness Cover (known as Trauma)



• Mortgage Repayment Insurance



• Income Protection Insurance



• Life Insurance



• Redundancy Cover

ASK KATRINA NOW click here

General knowledge or specific to you; Katrina will come back to you with an answer!

The cost of a second opinion...

If you or a loved one was seriously ill wouldn't you like the best possible world leading medical advice?

It is our job as an adviser to seek out the best possible solutions for our clients, to be abreast of the latest innovative products in the market and to ensure we have access to them.

Great news, we now have access to the best medical minds in the world. Yes thats right, its called "Best Doctors" and simply put it you were seriously ill and had Sovereign insurance cover with this benefit you would have access to a network of over 50,000 leading specialists from 30 countries! Best Doctors provides reassurance and expert advice on the diagnosis of critical illnesses, chronic and or degenerative conditions.

Here's how it would work:

STEP 1 - You and your Insurance People adviser contact Best Doctors
STEP 2 - Medical information is gathered
STEP 3 - Clinical summary is prepared
STEP 4 - Leading expert is selected
STEP 5 - Expert analyses the information and writes a report
STEP 6 - Report is explained and sent to you and the advice is shared with your NZ Doctors and specialists.

This is just one of the benefits available and a first Australiasian wide. If you want to know more contact us.

freephone 0508 PEOPLE (0508 736 753)

EMAIL a question enquiries@insurancepeople.co.nz

Income Protection or ...

Without a good quality income protection what are you options?

Now this would have to be one of the most common mistakes that a lot of us make; may be it comes from our "she'll be right" attitude - if I am off work ACC will take care of me! Perhaps. However ACC is for injury only; not illness! And ACC itself is changing, which means uncertainty.

As it stands now, ACC will pay 80% of your income if you are off work due to an accident causing injury, but the injury has to be an acceptable injury to ACC! Also, 80% of your income is capped so no matter what you earn you can only claim up to $102,880 - and there are no guarantees for how long this payment would continue for.

ACC Claims have hit the news over the past year or so, highlighting an increase in declines where it is identified as a "degenerative" condition! So, a legitimate accidental claim is declined on the grounds that the injury was already going to happen anyway due to natural aging, previous sports strains, stresses on the body etc.

What about the Sickness Benefit? In real terms if you are working because you need all your income to pay your bills, to live and support your family then its going to be a struggle to continue if you were to rely on a sickness benefit of say $201.40 (that is, a single person over 25 years of age); or $335.66 for a married couple (with or without children).

The Sickness Benefit has its place, but if you have a choice would you really want to have to rely on it to live?

THE FACTS
5 out of every 10 men & 7 our of every 10 woman will have more than one month off work due to illness or injury before the age of 65; and nearly a third of these women will still be off work 12 months later!

Whats your preference:
(1) To hope that if you are off work it will be from injury rather than illness so you can claim from ACC?
(2) To live off a Sickness Benefit?
(3) To have every cent of cover you need and nothing you don't - providing assurance of your financial well being no matter what?


Review your situation now! We're only a phone call away - freephone 0508 PEOPLE (0508 736 753)

Written inconjunction with Sarah Williams, Adviser, Insurance People.

Fire & General Insurance

The natural disasters that New Zealand has endured in the past 6 months have certainly given us all a real big reality check! In amongst the tradgedy it sure is great to know that we do all step up and help where and when we can.

At Insurance People we are receiving calls daily from clients asking - What am I covered for? Can I please review what insurance I have? Can I get a quote?

Our team of advisers are available now to review what you have, what you are covered for and what you are not covered for. From the calls coming in we are certainly well aware that there is a real need for people to understand what insurance cover they have - sometimes, it may be that you are perfectly insured; but sadly in most instances there are 'gaps' which could have a devastating effect should you ever need to make a claim.

Here are just a couple of things to thing about;

• Do you have house and contents insurance?


• Do you have specific items listed?


• Have you held on to receipts and photos?


• Do you have waiver of premium on your insurance?


• Are you are self employed? When your financial accounts are completed is the perfect time to review your income protection.

When was the last time you checked what you were paying in premiums?

Are you paying too much?

Are you over insured?

We welcome your call - freephone 0508 PEOPLE (0508 736 753)

Protect your income : Protect your lifestyle

What is your greatest asset?

Believe it or not, the ability to earn an income is the greatest asset we have; yet still for many the option of insuring that income is put off in favour of other financial commitments that we deem more important.

The true reality of our financial well being though, is without on going income the rest of our lifestyle would just about cease to exist.

So, why is it we always choose to insure our car, our contents such as our big flat screen TV, laptops and jewellery, our boat and even our holidays but we still resist insuring the income that provides for these things?

We think the answer is to have good quality income protection insurance, whether this is an actual income protection cover or mortgage repayment insurance.

In simple terms...

Income Protection provides replacement income to you, after a set waiting period, in the event of temporarily being unable to work due to illness or injury. This is a monthly benefit paid to you until you are well enough to return to work of for a set amount of time while unable to work.

Mortgage Replacement Insurance is payable if you were deemed temporarily unable to work due to illness or injury, but instead of receiving a monthly cash payment, the benefit is decided by the mortgage payment and usually paid direct to the Bank or lender. A good quality mortgage repayment insurance will continue once the mortgage is paid off in full as well, converting to an income protection cover at that point.

Sometimes when we are not sure about something, we tend to assume - below are just a few of the misconceptions about income cover:

• Income Protection is expensive


• It won't pay out when I need it


• ACC will cover me


• I can go on a Sickness Benefit


• I won't ever need to use it


• I won't be sick for that long

One thing we can assure you of is that the market has moved substantially over the last decade to now allow us all access to smart, well structured insurance that does not have to cost an arm and a leg!

Knowledge is no weight to carry and costs you nothing to get - if you want to have the assurance that your financial well being is protected, and that of your family and your lifestyle will always be protected no matter what - call us to discuss protecting your greatest asset!

Insurance People - freephone 0508 PEOPLE (0508 736 7853)

This information blog was written by Sarah Williams, Adviser, Insurance People.

Christchurch Earthquake Message

To all our clients and friends in Canterbury and to those client's families and friends who have been affected by the earthquake in Christchurch this week, our thoughts are with you all at this tragic time.

Please feel free to contact us with any queries you may have. We encourage you to utilise our expertise in the insurance or mortgage areas to assist with any undue pressure you may be experiencing as a result of this traumatic event.

Help and free advice is only a phone call away, it would be a privilege to help you, your friends and family.

Freephone 0508 PEOPLE (0508 736 753)
Auckland 09 360 5622

We can help with all your personal and business insurance needs; your fire and general - house, contents, car; and if you would like a review of your mortgage for any reason we can help there too.


Katrina Church
Director & Senior Adviser
Email katrina.church@insurancepeople.co.nz