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Your home is your castle. But what would happen if you lost your job or became disabled due to injury or illness? How long could you continue to pay your mortgage? Life insurance isn’t enough. Anyone who has a mortgage should consider mortgage protection insurance. The primary difference between mortgage protection insurance is that it covers your mortgage repayments and Income protection insurance covers your annual wages.

No offsets

Unlike normal Income Protection, there will be NO income offsets on the mortgage repayment amount insured. This means you could receive both ACC and your mortgage repayments while you are off work – potentially seeing you receive more money whilst off work than when you were at work!

Optional redundancy cover

Most Mortgage Protection policies offer an option to insure yourself against redundancy. Income protection rarely pays for loss of income if the reason for the lost income is unemployment due to redundancy

Recent changes

You don’t need a mortgage to use this benefit anymore – this is an option for people renting. They will cover up to 40{07fabe19bcb0a5feb753c282254629c4216624d1bab5b4aa05d46841f923b8d4} of your income, recognizing people may still have to be paying rent.

We welcome you to contact your adviser, to ask if this would be a suitable option for your situation and we will be happy to assist.

Children‘s trauma insurance cover is designed to ease the financial pressure on families.

Benefits are often spent on medical treatment, rehabilitation, replacing income if a parent takes time off work, or to take the family on holiday, during what is often a very stressful time for them.

Unfortunately, we can’t prevent childhood sicknesses. However, additional money may minimise the financial stress you and your family may suffer, especially if you have to cease work to be with your child.

If you have children don’t miss out on this opportunity.

Generally premiums start off low and increase over time. As you get into your mid to late 40’s the premiums start to take off and continue to increase as you are more likely to suffer from cancer, stroke, heart attack or even premature death. This is called stepped premiums.

Stepped Premiums are good when you need a high level of cover for the short term i.e. you have a large mortgage, have children that are still dependent on you financially and need affordable premiums. As you get older it is important to review these options and look at levelling some or all of your cover.

Level Premiums are fixed for specified period of time. Premiums start off higher than stepped premiums but quickly become less expensive as they are guaranteed never to increase due to age. Over the long term Level Premiums will save you thousands of dollars on your insurance premiums. It does require long term thinking and a commitment upfront ie you are paying more than you have to now (opportunity cost) but you will see the benefit in the long term. As shown in the graph:

In the example the insured would have paid a staggering $414,000 less in premiums by choosing level over stepped by age 79.
Level premiums are a good fit for those that would like to keep some level of life insurance after age 60 that is affordable. Reasons for this could include debt repayment, retirement savings boost, legacy/inheritance, tax liabilities, estate liquidity, funeral expenses etc.

Please contact us if you are interested in discussing this further.

A financial health check-up can help establish your current financial situation along with identifying any strengths and weaknesses in your current financial protection plans. To help you be prepared for your insurance review, take the next few minutes to think about the following:

• Increased your mortgage(s) and or changed homes?
• Separated from your Partner or Spouse? Entered into a new relationship?
• Had more children? Had children turn 21?
• Are your children under 18? You may be entitled to FREE children’s trauma.
• Changed occupation including becoming self-employed?
• Had a pay increase or decrease?
• Stopped smoking?
• Further discussion on fixed/level premium options for those over 45?
• Had a change in health that may trigger a removal of an exclusion or loading on your insurances?
• Would like further discussion on KiwiSaver?
• Discuss a CPI (inflation) increase of $5,000 without having to complete any paperwork?
• Would like further discussion on Retirement planning?

If you have answered YES to any of these questions it maybe time for a financial review. Contact your adviser or phone the office on 03 3602001

Over the years, there have been many changes to what can be done with Pension Transfers and these changes are to continue in the future.

Numerous funds closed to new business as they could not fit within the guidelines set by HMRC, such as the AMP Retail Superannuation. This is now a locked scheme with funds available from either age 55 or age 65.

Then Kiwisaver was no longer available to transfer into as this did not meet the requirements of HMRC due to first home withdrawals and hardship withdrawals being available. These funds are available at age 65.

Investment platforms currently available have to use 70{07fabe19bcb0a5feb753c282254629c4216624d1bab5b4aa05d46841f923b8d4} of the transferred value to provide a lifetime annuity, same as available in the original pension schemes. The additional funds and interest earned can be withdrawn from age 55.

This is to change on December 1st with current investments becoming unavailable to new clients, but new clients will be under new rules.

The new rules are under the regulations of New Zealand Authorities rather than UK authorities. This also means a reduction in the amount that can be withdrawn at age 55.

If you have friends, family or colleagues that have private pensions still in the UK, it would be a good time for them to contact me to discuss the benefits for transferring to New Zealand and also the possibility of still being under the current options.

This will mean contacting me in the next few weeks to get discussions and transfer requests in place to initiate the process before December. This means more funds may be available at age 55 than with the new scheme after December.

Will you be able to afford a loaf of bread or a pint of milk in your retirement?

This year’s Money Week theme was based on how much you will spend on groceries in retirement. Over the week people were asked to estimate how much they would need for groceries over the 30 years they might spend in retirement.

This year’s Money Week theme was based on how much you will spend on groceries in retirement. Over the week people were asked to estimate how much they would need for groceries over the 30 years they might spend in retirement. The commission’s David Boyle said: “Only 11 per cent guessed correctly at between $250,000 and $300,000. More than two thirds underestimated, and nearly a third of those thought it would be less than $100,000.”

Because we are living longer our money also has to last longer. Having KiwiSaver makes it easier for us to save for our futures, the trick is to make sure our income last as long as we do once we stop working.

Your adviser can assist you with your retirement plan and will give you an idea of how much you will need to save so you can still afford your groceries in retirement.

Within days of bringing home from the hospital my new-born daughter, I got her added to our health insurance. Is this something that everyone thinks about or only me because I have a background in insurance? I didn’t want to get into a situation when we would have to wait to have surgery or get medical treatment.

Health care in New Zealand isn’t what it once was. Somehow in the last few years the words such as ‘waiting lists’ and ‘ACC’ have crept into our vocabulary’s. Those who are not willing to go on the ‘waiting lists’ have been known to take loans, re-mortgage properties to get the medial care they need. Then they spend years trying to pay off these loans. Otherwise, you sit on the waiting list and wait and wait …

My question to you is – is it worth all this stress? When all it took me was 5 minutes on the phone and bam my daughter was covered under our policy.

My gift to my daughter is knowing she is covered and not just with a blanket.

The other day one of our advisers asked me to text a client to remind them of several requirements which were still outstanding in terms of insurance underwriting.

“TEXT” a client!!!!

Look how far we have come. Technology has had a definite impact on the way we conduct everything in life. In the ‘good old days’ which in truth really weren’t that long along. people did all their business locally. Trips were regularly made to banks, lawyers, accountants even financial advisers. Ledger books and cheques were used and that mysterious thing call cash was actually carried.

Let me ask you a few simple questions when was the last time you entered an actual bank???? Do you have any cash in your wallet???

Nowadays those who do not have a cell phone/laptop/ipad or the latest technology gadget are considered dinosaurs, old fashioned and backwards. Business has changed. You can sit at home wearing sweat pants and runners whilst emailing your financial adviser, manage investments at a click of a button, talk to people on the other side of the world but just sound so clear that you would think they were in the next room or conduct business at 3am when overseas markets are just waking up.

Does this technological approach to life carry with it the personal touch? Or is it impersonal ?

Here at Ark Financial Group we have embraced technology. In our office alone there are 6 cell phones all with internet capability, but nevertheless we still have a wireless network. So what’s next for Ark? An app to download for smart phones? The added ability to work out quotes on the run. What about 3D imaging on your adviser? So at review time they pop up and go through your current covers??

As long as there is imagination – technology will keep changing.