Insight

Autumn 2016

Life Insurance for the Next Generation

What advice have you, or would you, give to your grown children to help them get all their financial matters in order?

Would that advice be to start with a life insurance plan early, so that they can face the future with confidence knowing things like the mortgage would be taken care of, should the worst happen.

As you probably know, the biggest benefit of starting a life insurance plan at an early age is the lower premium rate that can be realised. This is because the cost of life insurance plans will increase as you get older; but if you get in early enough you might benefit from low premiums for years to come.

There are two types of life insurance premium you can choose between:

  1. 'Stepped’ – these premiums increase every year with age; or
  2. ‘Level’ – these premiums don't increase (unless your cover level increases)

While ‘Stepped’ is cheaper at the beginning, because it increases every year, in the longer-term, it becomes relatively more expensive. ‘Level’ cover starts out more expensive (typically around double the price of ‘Stepped’), but in the long-term can cost much less. Here’s a simple scenario to highlight the difference in premium in the two different types:

*John Smith – 30 year old male - $300k Life cover (non-smoker)

Stepped Premium, now – age 30 $21.79 / fortnight
Stepped Premium, at age 65 $947.65 / fortnight
          vs
Level Premium, until age 65 $39.47 / fortnight

*Policy scenario does not include adjustments for inflation

If you are considering helping your children get insured, get in touch with your AdviceFirst Adviser to discuss the options available.

Click here to send us an email or or phone our team on 0800 438 238.

Key Economic Themes for 2016

After a volatile start to the year in the financial markets, AMP Capitals Managing Director Grant Hassell expects economic conditions will likely remain mixed around world economies with another year of modest global economic growth.

Click here to read AMP Capitals latest Taking Stock e-magazine and see for yourself the key financial themes predicted for the year ahead.

economic trends pic

Who pays when Pharmac won't

No one wants to imagine the worst, but if the worst did happen, a lump sum payment from your Trauma Protection cover could help provide peace of mind, and contribute towards the financial means to privately fund potentially life-saving or extending drugs.

Most Trauma Protection policies cover around 40 major trauma conditions – with the top three claims being for cancer, stroke and heart attack. From helping pay your medical care to helping to cover your mortgage or household bills, you can choose how best to spend your chosen amount, leaving you to focus on the more important things, like your treatment, recovery and spending time with your loved ones.

If you would like to know more about Trauma Protection cover, contact your AdviceFirst Adviser today.

Click here to send us an email or or phone our team on 0800 438 238.

Talk to us about your home loan

Whether you are just about to get into the property market, or looking to re-fix or refinance your existing home loan, we can search for a home loan that’s right for you.

Roost logo

Our home loan experts take the hassle out of the home loan process:

  • We meet with you to discuss what you want, your budget and other relevant factors
  • We take care of all the shopping around and paperwork 
  • We’ll offer expert advice on a range of loan structures
  • We’ll recommend competitive and appropriate loan options, based on up-to-date research in a fast changing market to suit your lifestyle
  • We’ll manage the process for you – by securing the best loan approval and negotiating competitive interest rates, professional fee contributions and other incentives for your loan

Leave it to us to find your dream loan so you can focus on your dream home.

Call our team today on 0800 438 238

The right home loan  

Benefits of KiwiSaver

KiwiSaver was specifically designed to help you prepare for your retirement. But while you may have started KiwiSaver with a long-term retirement view, there are benefits that you can enjoy today.

Here are some of the current benefits that you may be eligible for as an active KiwiSaver contributor:

  • An annual member tax credit contribution of 50 cents for every dollar you save, up to a maximum of $521.43 per year - but you’ll need to have the contributions at $1043 by 30th June this year to collect full credit
  • Compulsory contributions from your employer 
  • Flexibility to respond to changes in your situation
  • Help with buying your first home

Your employer and government contributions work alongside your own contributions to boost your savings. That’s why KiwiSaver may be more effective than a regular savings plan to help you meet your retirement savings goals.

KiwiSaver Future Booster

Email us or phone 0800 438 238 to talk about your KiwiSaver and to ensure you receive the full member tax credit.

Simplifying Insurance

The team at Sovereign have put together some videos that you may find useful to gain a better understanding of the insurance process:

  • Understanding Insurance Premiums - Want to understand life insurance premiums? It's worth knowing what they are and why they can change
  • The Claim Process - If you're making a claim, we understand when something hasn't gone to plan. To help you through this difficult time, here's a heads up on what happens and how to make the process easier 

Of course if you are unsure of any detail relating to your own policy you can give our team a call on 0800 438 423 and we can talk you through it.

Let's talk