A recent article in Stuff stated that:
“New Zealanders place more value on their house and car than they do health and family if current insurance trends are anything to go by.”
A good way to think about this is Objects versus People.
Objects include your car, home and contents whereas People covers your ability to work, health and family.
Research by Massey University from 2012 found that;
- 57% of New Zealanders had life insurance,
- 20% had income protection insurance,
- only 15% had disability or trauma insurance,
- and interestingly, 95% of New Zealanders had car, house or contents insurance.
This research showed that as a nation we underinsure Peoplebut adequately insure Objects.
If you were unable to work for 6-12 months how would you manage?
Have you ever calculated how long you or your family could survive without your income?