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Adviser commission - what's the fuss when lives are just not fully protected?


The recent publicity around payments and incentives paid to financial advisers has tended to cloud the real issues that need to be addressed.

One of our newer but innovative life insurers recently advised that New Zealand is the 2nd to lowest of the OECD countries when it comes to life insurance coverage.

A 2011 Massey University study “exploring under-insurance within New Zealand” estimated that the total level of vulnerability in New Zealand is about $195.6 billion. In lay persons terms that means that many families would not have enough to repay the mortgage or replace income should an income earner die prematurely.

Whilst the above under-insurance figure might seem somewhat emotive, in the event of another major event such as the Canterbury earthquakes, there would be many families who would struggle financially and need to rely on “Givealittle” or the state to bridge the financial gap. Ultimately of course this cost would need to be met by the tax payer.

At Thompson McNeill we believe that preparation to protect income in the event of an unforeseen event is paramount and an essential part of planning for the future. We want to help as many people as we can, and with innovative life insurers available to us we look forward to helping!!

Give us a call on (03) 281 8605 or email:

jerome@thompsonmcneill.co.nz

sandra@thompsonmcneill.co.nz


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