The insurance industry is full of jargon that often appears to be part of a secret underground language, designed to confuse and bewilder. Money week is an excellent platform to reveal part of the secret code which makes up many Income protection policies. Prepare to have the magician’s cloak pulled aside and be amazed at how simple it really is.
A 2018 report has New Zealand’s total household debt to personal disposable income ratio at an all-time high of 166.2% in the second quarter of 2017, putting our debt levels in the top 10 countries in the world. Clearly, we New Zealanders are comfortable with debt. But, are we too comfortable with consumer debt?
When asked if they have life insurance, most people immediately think about the traditional death cover – you know, the type that pays a cash lump sum to your dependants when you die. But there are other types of “life insurance” that can assist you when illness or injury impacts your ability to earn an income.
The mere mention of ‘investments’ is enough to glaze eyes and switch off brains. This is hardly surprising; an entire book has been devoted to demystifying the jargon, acronyms and terminology of investments. While the complexities are seemingly endless, understanding a few simple concepts will go a long way in helping you achieve financial success.