New Zealand Insurance Companies

Do you hear the word “insurance” all the time especially now that you have reached the life of adulthood and know nothing about it? If that is the case, then this article is the right place for you to be in right now because it will discuss what insurance is all about and what the different types of it are.

Insurance is some sort of a risk management wherein the insured transfers the cost of potential loss to another person or entity in exchange for a monetary value which is known as the premium.

Insurance is a way of protecting individuals, businesses and other entities against potential losses and financial troubles at an affordable rate. This is significant if you want to protect yourself against monetary loss.

Life Insurance

The coverage for this type of insurance is for the specified beneficiaries wherein they will be paid with a certain amount of money in the events that the insured has died.

In most cases, this is the primary insurance that people get so that they will have something to leave for their loved ones, especially if the insured is the breadwinner of the family.

The common period of coverage for a life insurance usually lasts for more than a year. It will require periodic premium payments (monthly, quarterly or yearly).

Risks covered by this type of insurance:

Illness
Premature death
Income during retirement

Main products of this type of insurance:

Term
Whole life
Endowment
Life annuity plan
Investment-linked
Medical and health

General Insurance

This is an insurance policy that will protect individuals against damages and losses apart from the ones covered by life insurance.

To let you in the know about the comprehensive coverage, you should have an understanding about the risks covered so that you will protect you and family from unforeseen losses.

Risks covered by this type of insurance:

Property losses (e.g. cars, houses, etc.)
Accidental injury or death
Liability that arises from damage caused by you towards a third party

Main products of this type of insurance:

Travel insurance
Motor insurance
Householders / homeowners / fire insurance
Medical and health insurance
Personal accident insurance

Remember!

Human life is not possible without any risks involved. The best way that you can deal with such scenario is to have yourself insured. This protection is not primarily for yourself but for the family that you will be leaving behind and that is the reason why insurance companies exists and functions from different parts of the world. So as early as possible, get yourself insured and secure your assets, particularly your family, because you will never know when such a dreadful scenario will happen.

Insurance in New Zealand

New Zealand has many insurance companies, which provide a range of insurance services to consumers including home insurance, contents, life, medical, and travel policies; as well as consumer finance and goods specific policies. Many of the major insurance brands are independently owned, some are part of larger parent companies which offer both direct and intermediated insurance and others operate solely online. All New Zealand insurance companies are regulated by the Reserve Bank under The Insurance (Prudential Supervision) Act 2010 to make sure that the sector operates efficiently and to promote public confidence in the sector. In addition, the Act also requires licensed insurers to list a financial strength rating from an approved agency such as Standard and Poor's.