- Please Note: Hurford Parker Financial Services do NOT offer investment advice.
LIFE PROTECTION COVERS
| PERSONAL LIFE PROTECTION | BUSINESS LIFE PROTECTION |
| Life Assurance | Commercial Debt Protection |
| Trauma/Critical Illness | Key Person Protection |
| Total and Permanent Disability | Shareholder Share Protection |
| Income Protection | Partnership Protection |
| Medical/Health Insurance | Business Overheads |
HOW HURFORD PARKER FINANCIAL SERVICES CAN BENEFIT YOU
- There are a number of ways that dealing with a broker is better than dealing with a tied agent or direct with an insurer; they are as follows:-
- We look for competitive premiums, however the policy wordings and the insurer's attitude to paying claims are also taken into account;
- Based upon a Fact Find with each client, we are able to produce a report that is tailor-made for each client;
- The Report will give you a snapshot of where you are, potential problems that you face, and a solution and costing to those problems;
- We will guide you through this process and we ALWAYS act on your instructions;
- In the event of a dispute between yourself and the insurer at claim time, we are able to act as an independent advocate on your behalf. Whilst this is no guarantee to a claim being met, it does ensure that you have someone who knows the policy as well as the insurer, acting for you.
PERSONAL LIFE PROTECTION
LIFE ASSURANCE
Normally in the personal market this is intended to protect a spouse or partner in the event of your death. The lump sum is normally calculated to remove debt and can also replace some or all of the lost income. It is imperative to include a housewife/ househusband as they have responsibilities and duties that can only be replaced with additional financial input.
"Life is no brief candle to me. It is a sort of splendid torch which I have got hold of for the moment, and I want to make it burn as brightly as possible before handing it on to future generations."
George Bernard Shaw (1856-1950)
TRAUMA/CRITICAL ILLNESS
This will pay a lump sum benefit in the event of diagnosis of a serious critical condition such as cancer, stroke or heart attack. Up to thirty conditions. A trauma such as this can sometimes be as financially destructive as the death of a partner/spouse. A lump sum payment can be made to remove some or all debt, alter your house or move or to assist with increased expenses because of your state of health.
"Two out of five people will suffer a critical illness before they reach age 65."
Source: NZ Life Tables 1990-1992 Public Hospital and Selected Morbidity Data 1994.
TOTAL AND PERMANENT DISABILITY
This will make a lump sum payment in the event that you are totally and permanently disabled and unlikely to ever be able to follow a career again for which you are reasonably suited by training or experience.
INCOME PROTECTION
Your largest asset is likely to be your ability to earn an income. If you multiply your current earnings by the number of working years you have left and then make an allowance for inflation and pay increases, it is likely that you will find the figure is many times the value of any other assets you have. In the event of an accident, you are covered by ACC, if the inability to work is due to illness rather than accident it is likely that you will become dependant upon your savings and finally social welfare. Protecting your income is protecting your lifestyle.
"One in nine men will be disabled and off work for more than twelve months before age 65. One in five women will be disabled and off work for more than twelve months before age 65."
Source: Insurance Alert, Winter 2000
MEDICAL/HEALTH INSURANCE
"Medical insurance will help give you access to the very best medical care at a time that suits you, and in the hospital of your choice." New Zealand has a very good health system, in the event of an emergency you move straight into the system without delay.
If however your condition is not immediately life threatening you might well find yourself on a waiting list for treatment. Waiting lists are a fact of life that none of the political parties can ever solve as the pressures on the health system are getting larger and unlikely to ever get smaller.
Medical insurance gives you the opportunity to ensure that your family is not left a victim of prudent Government policy and waiting lists. What price do you put on your family's health?
BUSINESS LIFE PROTECTION
COMMERCIAL DEBT PROTECTION
This is intended to repay any overdrafts or term loans that have been guaranteed by the Principal of the Company, guarantees DO NOT die with the Principal, they will continue to hold the Estate liable until such time as all debt has been repaid. This can also include contingent debt such as guarantees to third parties, unexpired lease guarantees (i.e. if you have commercial premises on a rental of $25,000 per annum on a four times four renewal basis supported by a Personal Guarantee, you effectively have a potential liability of $100,000 on that.
"One in six males and one in nine females aged over 30, will die before they reach 65."Source: Statistics New Zealand 1998, NZ Life Tables 1995-1997.
KEY PERSON PROTECTIONThe concept of Key Person protection as can be seen from the above, is nothing new. If your business is dependant upon a few key people what would happen to your business in the event of either the permanent loss or a total but temporary loss? Business people have no compunction about insuring their commercial premises and their commercial assets, yet they do not insure against the loss of human resources.
"Key Person Insurance is effectively an extension of liability and business interruption insurance. We are in the business of supplying venture capital in the event of tragedy."
"You can take my business, burn my building, but give me my people and I will build the business right back again".
Henry Ford 1863-1947
SHAREHOLDER SHARE PROTECTION
If you are an owner of a limited liability company, you may well have other shareholders in the business whose rights are guaranteed under The Companies Act. In the event of the occurrence of death, trauma or total and temporary disability of a shareholder, are you ready to deal with your fellow shareholders' accountant or lawyer? We can show you how to overcome this problem to ensure that the remaining shareholders retain control and that the family of the affected shareholder are given a fair value for the shares in the business. PARTNERSHIP PROTECTIONThis is broadly very similar to a Shareholder Share Protection Scheme but is intended to protect the partnership whether that be two partners or multiple partners. A husband and wife partnership is unlikely to create a problem as the value in the business will likely transfer to the survivor. BUSINESS OVERHEAD PROTECTION In the event of a total but temporary disability of yourself, (or possibly one of your key personnel) how do you ensure that your business can continue to meet all its financial obligations? Whilst you personally may be in receipt of an income from an income protection policy who will generate the income to pay the rent, the rates, the insurance, the business debt, the lawyer, the accountant etc? Whilst your business may survive quite well in your temporary absence for three weeks whilst you go on holiday, it is likely that this is planned from six months before and that you are up to date prior to your departure. If you were suddenly to be removed from the business for six or nine months, would the business survive? "40% of disabilities are due to disease or illness, 34% are due to accident or injury. However only 5% of the disabilities lasting six months or more were related to accidental causes."Source: NZ Health Information Service 2001, NZ Life Underwriting Magazine October 1987.
* Trauma/Critical Illnes - List of 30 Conditions
Angioplasty * **
Cancer
Chronic renal failure
Heart attack *
Major cardiovascular disease
- Coronary artery bypass surgery *
Major transplant surgery
Paralysis
- Paraplegia
- Quadriplegia
Stroke *
Alzheimer's disease and Dementia
Aplastic anaemia
Chronic liver failure *
Chronic lung disease *
Creutzfeldt-Jakob disease (CJD)
HIV (only for emergency services professionals)
Loss of functionality
- Loss of independent existence
- Permanent blindness *
- Permanent loss of speech, hearing or limbs
Major burns
Major cardiovascular disease
- Aortic surgery *
- Cardiomyopathy
- Heart valve surgery *
- Out of hospital cardiac arrest
- Pulmonary hypertension
Major neurological disease (other than stroke)
- Benign brain tumour
- Coma
- Encephalitis
- Major head trauma
- Motor neurone disease (MND)
- Multiple sclerosis (MS) *
- Muscular dystrophy
- Idiopathic Parkinson's disease
- Peripheral neuropathy
Paralysis
- Diplegia
- Hemiplegia
* For these conditions a claim cannot be made if they are suffered within three months after the risk commencement date.
** Payment in respect of Angioplasty is limited to 10T of the Living Assurance Benefit under the policy, subject to a maximum of $30,000. The Living Assurance sum assured will reduce by the benefit paid.
Return to Trauma/Critical Illness
Please contact Hurford Parker Life Department for more information.
