Frequently Asked Questions

The general rule is 10-12 times your annual income, but a more accurate approach is calculating your specific needs: mortgage balance, children's education costs, living expenses, debts, etc. For example, if you have a $600k mortgage, $150k for children's education, and $700k for 10 years of living expenses, you might need $1.45M in coverage.

Term Life: Covers a specific period (10-30 years), lower premiums, suitable for young families and temporary needs.

Whole Life: Lifetime coverage, higher but fixed premiums, builds cash value, suitable for estate planning.

Usually yes. Group insurance coverage is often insufficient (typically only 1-2 times annual salary) and ends when you leave your job. Personal insurance can supplement the coverage gap and is portable, unaffected by job changes.

ACC: Only covers accidental injuries, including medical costs and income compensation (80%), but doesn't cover illness.

Private Health Insurance: Covers illness and medical conditions, provides faster treatment access and more choice, but doesn't cover accidents (handled by ACC).

Waiting periods are the time you must wait after your policy starts before you can claim for certain conditions. General waiting period is 6 months, specific conditions (like cancer) may have 12-24 month waiting periods. Accidents usually have no waiting period.

Pre-existing conditions are usually not covered, or have special waiting periods and restrictions. It's crucial to honestly disclose all health conditions when applying. Some insurers may accept certain pre-existing conditions but with additional premiums or exclusions.

If you can't work due to illness or injury, income protection insurance pays a percentage of your income (usually 75%) after a waiting period (typically 30-365 days). Payments continue until you can return to work, reach retirement age, or the policy term ends.

This depends on your emergency savings and sick leave benefits. If you have 3 months of savings, you can choose a 90-day waiting period to reduce premiums. If savings are limited, consider a 30-day waiting period. Remember, shorter waiting periods mean higher premiums.

Own Occupation: Pays if you can't perform your specific job, more comprehensive but higher premiums.

Any Occupation: Only pays if you can't work in any job suited to your education and experience, lower premiums but more restrictive.

Processing times vary by insurance type and complexity: Simple health insurance claims usually 5-10 business days, life insurance claims 2-6 weeks, complex income protection claims may take 6-12 weeks. Providing complete documentation promptly can speed up processing.

First, request a written explanation from the insurer. If unsatisfied, you can appeal through the insurer's internal complaints process. If still unresolved, contact the Insurance and Financial Services Ombudsman (IFSO), which is a free independent dispute resolution service.

Typically needed: Claim forms, medical certificates, doctor's reports, receipts and invoices, proof of identity, policy documents. For income protection claims, also employer confirmation and proof of income. Keep copies of all relevant documents.

This depends on the premium structure: Stepped premiums increase annually with age, level premiums are fixed during the guarantee period. Reviewable premiums may be adjusted based on claims experience. Choose guaranteed non-reviewable premiums to avoid unexpected increases.

Personal insurance premiums are usually not tax deductible, but claim payouts are typically tax-free. Some insurance premiums for business owners may be deductible. Consult a tax advisor for your specific situation.

Several ways: Increase excess/deductibles, choose longer waiting periods, bundle multiple insurances, maintain healthy lifestyle for discounts, choose stepped premiums (cheaper when young), shop around for best prices.

This depends on your age, health, and coverage amount: Under $500k usually only requires health questionnaire, $500k-$1M may need basic exam and blood tests, over $1M usually requires comprehensive exam including ECG. Requirements become stricter with age.

Yes, but you must disclose previous declines in new applications. Different insurers have different underwriting standards, so a decline from one doesn't mean all will decline. Consider consulting an insurance advisor to find the most suitable insurer.

The sooner the better! Premiums are cheapest when young, health is usually best, and it's easier to get coverage. Important life events like marriage, buying a home, having children should trigger insurance needs reassessment. Don't wait until health issues arise to consider insurance.