Regular reviews of insurance coverage are an important part of life in a post-COVID economy, a Canterbury-based financial adviser and insurance specialist said.
“COVID has shown us at a global level how health risks can impact our lives in so many unexpected but significant ways,” said Barbara Lee Dickson (pictured above), founder and director of The Insurance Ladies. “Right in front of us has been a stark example of how life can change in the blink of an eye and how our finances can change instantly because of that. COVID should be the best motivator to get our life and health insurances sorted out today and keep them sorted going forward.”
Dickson said that clients and advisers should regularly be in contact and discuss the client’s current financial needs and update their insurance accordingly. Having private medical cover can help avoid elective surgery delays in the public health sector, and income protection insurance can help buffer against rising mortgage rates, she said.
“New Zealanders have a sort of ‘set and forget’ mindset about their life and health insurances – it's almost like once you buy it you should never have to think about it again,” Dickson said. “But life and health insurances are meant to help you maintain your current financial life when bad health things happen. Insurances need to keep pace with your current financial life rather than the one you had when you first bought your insurance. Imagine at 50 having to rely on the income you had when you were 25?”
