On choosing what insurance to invest in, Tom says it’s important to first analyse your individual insurance needs.
“It’s important to look at the risks you carry and what each insurance product will do for you and your risks. Products make sense at different stages of life to get the peace of mind you want.’ says Tom.
For example, with dependents or people who rely on you for financial support, like children and elderly parents, it’s worth investing in income protection and/or trauma insurance so they can still thrive even if you’re not able to work.
At AIA, we offer both Trauma Insurance and Income Protection Insurance. Trauma insurance can provide financial support to cover your needs, such as taking care of medical treatment and rehabilitation costs, or allowing you and your family to focus on recovery instead of worrying about work. Income Protection Insurance ensures that should you face an illness or injury which prevents you from working, you receive regular monthly payments to cover your ongoing financial commitments such as household bills, mortgage or rent payments.
It’s important to speak to a trusted adviser when considering insurance options. If you don’t have an adviser, you can request a call back from AIA and we’ll put you in touch with an adviser in your local area who specialises in the type of insurance you’re interested in.
Finally, we asked Tom for his top tips for people trying to be better with their money in 2023. Check them out below:
- Try to get through this time with as little debt as possible - there will be times when borrowing is necessary, but if we can get through the year with as little debt as possible, New Zealanders will be in a better position for the future.
- When making a financial plan or budget, give every dollar a job to do - ensure that this is in keeping with your financial goals.
- Keep your spending happy - prioritise the things that bring you joy.
For those who make an effort to budget effectively and maximise their finances, but are still struggling to pay for necessities, Tom says one of the best resources is the free helpline MoneyTalks - 0800 345 123. Tom recommends reaching out, even anonymously, for personalised support from financial mentors working in locations all throughout Aotearoa New Zealand. They provide advice to anyone who is struggling with financial debt, or those who want to plan more effectively for the future.
For further information and support, Sorted offers New Zealanders free, impartial information to help manage money throughout life through comprehensive guides and free online tools.