It’s common practice to have life insurance – at least for the main bread winner of the family, but how many of you have income protection insurance? You are far more likely to lose income through illness or accident, than through death.

Half of all adult Kiwis have life insurance. They can imagine the catastrophe if the family breadwinner died.

Yet we face a much bigger risk financially than death. That is losing the breadwinner’s income through “disability” from illness or accident.

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The majority of New Zealand families are currently extremely vulnerable to adverse events relating to the death, disability or illness of the income earners. The vast majority of single New Zealanders are vulnerable to adverse events relating to long-term disability due to sickness.

The majority of the personal insurance cover Kiwis do hold is faulty in terms of the type and sums insured. This is in sharp contrast to insurance cover for houses or cars, items far less valuable than an individual’s ability to carry on earning a living.

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