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WHAT IF THE WORST WERE TO HAPPEN?
MAS Senior Advisor Dane Boswell knows all too well the terrible consequences of underinsuring your life and income-earning potential. Phil Belcher, MAS Life and Disability Product Manager, shares Dane’s story. WHEN DANE WAS 20 years old, his mother died in an accident on the family property in Kerikeri. Unfortunately his parents had cancelled their life insurance just six weeks earlier, because they felt they were in a position to manage on their own – they had a successful business and were feeling secure with their income. Dropping down to one income put Dane’s father under huge financial pressure, and meant that he had to work until he died in his late 70s. Because of this, Dane is passionate about helping MAS members to make informed decisions on protecting themselves and their families, often using his own painful personal experience as an example of a worst-case scenario. “I want to make sure others don’t go through what my family has been through. I’ve lost both my parents and
50 – VetScript October 2020
I’m only in my mid-30s. My dad had a really tough last few years of life because no-one spoke to him about insurance with enough conviction to ensure he and Mum had enough cover in place. “It’s definitely a sad position to be in, especially for my kids – they can’t get to know my side of the family at all. It really drives home that New Zealanders need to do away with the ‘she’ll be right’ attitude. It’s my job to make sure members don’t end up in the same situation and are protected in case the worst happens.” Life insurance pays a cash lump sum if you pass away or are diagnosed as terminally ill. It’s usually used by your loved ones to repay the mortgage or for childcare and education. Income protection insurance pays a regular amount of up to 75% of your usual earnings if you can’t work due to an
illness or injury. It also continues to top up your income to 75% of your previous earnings as you return to full-time work. The Accident Compensation Corporation only covers you if the injury is caused by an accident and there’s a cap on how much of your income will be covered. KIWIS ARE UNDERINSURED Research commissioned by the Financial Services Council has revealed that a lot of Kiwis are underinsuring their lives despite being aware of the importance of insurance. Only nine percent of Kiwis are adequately insured for critical illness, 11% have enough income protection/ mortgage repayment insurance, and 29% have adequate life insurance (Financial Services Council, 2020). Dane believes that a person’s underinsurance comes down to a
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