Do I actually need insurance?

Nov 17, 2022

You’re not buying insurance, you’re buying peace of mind

Many people see insurance as a necessary evil. Something you throw money at each month largely for nothing. “If I don’t claim anything, I don’t get my money’s worth.” But I would suggest the opposite is true – it’s just about perspective.

Having insurance means you can fall asleep knowing your family will be protected for anything. If you get sick and are unable to work, or if the worst should happen and you die, your loved ones will be looked after financially.

Never claiming on your covers, means you’ve won. You’re living a healthy life and you and your family are still together.

You can fall asleep knowing your family will be protected for anything

What are the main types of cover?

1. Life Cover

Let’s start with the most common. Life Cover pays out a lump sum in the event of death or terminal illness. Unfortunately it’s the family who bears the financial brunt when someone passes. Funeral costs, lawyer fees, accountancy fees, ongoing expenses like children’s education, and even paying off the debts of the deceased. Life Cover takes that burden away from the family and helps them survive financially.

2. Trauma

Immediate access to money if you’re diagnosed.

Trauma Cover is the most claimed type of life and disability insurance. It covers 50-60 of the most common injuries and illnesses, with the three most common being cancer, heart attack, and stroke.
You’ll be given a lump sum which you can use to help pay the bills, access additional treatment, or even cover the time off work your spouse may need to take in order to look after you.
The last thing you want is to restrict your treatment options because you can’t afford the time off to recover or, even worse, you can’t afford the treatment itself. Knowing you’ll have immediate access to money if you’re diagnosed with an injury or illness means you’ll have the financial freedom to make choices that are best for you and your family, without the financial stress.

3. Income Protection

The third major type of insurance is Income Protection. Your income is arguably your most important asset, bigger even than your home. If you were to be injured or get sick, and be unable to bring in money, everything you’ve worked for would be at risk. Unlike Trauma Cover, Income Protection gives a monthly payment so you’re able to cover your regular bills and continue to enjoy the lifestyle you’re used to living.

4. Health

Get the medical treatment you need, when you need it.

Health Cover gives you peace of mind knowing that you and your family will be able to get the medical treatment you need, when you need it. New Zealand’s public health system is relatively good but kiwis are often forced to wait long periods for consultations and treatments. In the wake of covid, surgery wait times are often exceeding 24 months! Having access to private medical care means you can be seen and treated a lot quicker, saving yourself pain and preventing chronic health issues.

Having Health Cover also provides you with choice. The Government can only afford to subsidise certain drugs and if the best course of treatment for you is with a non-subsidised drug, you’re facing an expensive bill just to stay well. Health insurance can help provide these funds so that you can get the treatment you need, and not just the one you can afford.

Why use an insurance adviser?

It’s the same reason you use any specialist. Yes technically you could do it yourself. Go online, spend time going through all the different insurance websites, select the deal that to your eye seems the best. But are you going to get it right? Will you read all the small print on every page so you know exactly what you’re covered for and what you’re not?

An insurance adviser is an expert. It’s their job to know every single detail of all the different cover packages. They’ll then walk you through the ins and outs of the options that best suit you.

That way you can be confident your insurance is tailored to your specific needs and you’ll be able to go to sleep knowing that no matter what happens, you and your family will be protected.

You can book your personal insurance review with Cory by clicking here

Cory Bennett

Published by Cory Bennett, Personal Risk Adviser at Float

The team at Float would love to chat if you think you might need insurance advice

Reach us on 0800 356 288 or at

Alternatively you can Book a Meeting today with Cory to get started

You may also like:

Contact us

Talk to the team today on: 0800 356 288

You can find us at: Level 1, 359 Onehunga Mall, Onehunga. Auckland