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Talking to Family and Friends About Insurance

When you think about the topics you discuss with your friends and family, insurance probably isn't at the top of your list. It may seem dry, and many people hope they'll never actually need to use it. However, having occasional conversations about insurance can make a significant difference. It's not about giving advice or telling your them what they should do, but rather sharing your experiences and raising awareness about the importance of insurance. These discussions could open their eyes to areas they may not have considered before. So, here are a few reasons why discussing insurance with your friends and family is essential, along with tips on how to go about it.


1. Normalizing Insurance Matters

The more people talk about insurance, the more normal and commonplace it becomes. When topics are familiar, we are more likely to engage with them. Sharing details with friends and family about the insurance you have and why you chose it can make them more aware of what's available and encourage them to consider what might be useful for their own circumstances. You don't need to delve into the specifics of your coverage, but explaining your priorities can be a valuable starting point.


2. Most New Zealanders Are Underinsured

Compared to many other countries, New Zealanders have lower levels of insurance coverage. Globally, New Zealand ranks 26th out of 56 countries in terms of insurance spending, at just 3% of gross domestic product (GDP), compared to an OECD average of 9.4%. A survey by the Financial Services Council (FSC) found that a significant 70% of New Zealanders were underinsured, potentially putting themselves and their families at risk. Shockingly, only 11% of respondents had income protection insurance, and just 18% had cover for trauma or critical illness, while slightly over a third had life insurance.


3. Consider Your Risks

We're generally good at insuring assets like houses and cars, with as many as 97% of homeowners having house cover, often a requirement for mortgage holders. However, many people haven't considered that their ability to earn an income could be their most valuable financial asset. It's worth discussing what would happen if they suddenly lost their ability to earn. How would it impact their lifestyle and long-term goals? Engaging in such a conversation, if possible, could be enlightening. You never know, you might be their plan B, while it really should be insurance.


4. Prompt Someone to Re-evaluate Their Cover

Knowing that a trusted friend understands the value of insurance may prompt your friends to reconsider their coverage needs. We often trust our friends and family as sources of information in various decisions, including financial ones. Insurance decisions are no exception. If you want to help your them become more financially resilient, an open and honest conversation about your insurance decisions can be a great first step. You can also ask us to talk to them as we are used to explaining and answering insurance questions.


Ready to Talk?

If you have questions about your existing policies or are considering insurance for the future, we're here to help. Feel free to reach out to us by phone or email, and we can assist you in assessing your current protection and any adjustments that may be necessary in the future.

Remember, insurance is not just a financial product; it's a tool for securing you and your loved ones' futures. Starting the conversation about insurance with your friends and family can be a simple yet impactful way to ensure they're on the path to financial security.

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