Choosing price over protection

Affordability is crucial, but choosing a policy based on price alone can be risky. Some lower-cost policies come with blanket exclusions or reduced benefits that might leave you unprotected when you need support the most. The key thing is to find the right balance - cover that fits your budget while providing the protection you need.

How we can help: Instead of focusing only on price, we take a broader approach - helping you compare policies based on what they actually cover, the level of protection they provide, and any conditions that apply. And of course, we make sure your budget is always a priority.

Underestimating how much cover you need

Many people assume they’ll need less cover than they actually do. They might believe their savings or their partner’s income would be enough to manage expenses, only to realise later that it’s not quite enough. That’s why it’s important to take a realistic look at your finances and the potential impact of the unexpected.

How we can help: We take the time to understand your financial commitments, lifestyle, and future plans so we can recommend cover that truly reflects your needs. It’s not about taking out more insurance than necessary, but rather ensuring you have enough to protect what matters most.

Forgetting important health details

When applying for personal insurance, you’ll be asked about your medical history. It’s easy to forget about past health issues - maybe a minor surgery years ago or a condition you no longer think about. But even unintentional non-disclosure can lead to complications down the track, potentially affecting future claims.

How we can help: We guide you through the application process, asking the right questions to help jog your memory and ensuring nothing is left out. When in doubt, always disclose. Full transparency upfront means fewer surprises later and ensures your cover works as expected when you need it.

Overlooking policy exclusions and fine print

Not all policies are created equal, and they may not cover everything you assume they do. Some have exclusions or loadings for pre-existing conditions, certain medical treatments, or specific activities (like extreme sports). Without understanding the fine print, you could be caught off guard later on.

How we can help: We take the time to go through the details with you, making sure you fully understand what’s covered - and what’s not - before you take out a policy. Plus, annual reviews with us give you the chance to revisit your cover and refresh your understanding of your policy.

Forgetting to review and update cover

Life changes - marriage, children, buying a home, or changes in income - all affect your financial responsibilities. If you don’t review your cover regularly, you might find that it no longer suits your needs, or that you’re paying for protection you no longer require.

How we can help: We’re here for the long run, not just when you first take out cover. By reviewing your policy as your circumstances change, we can help you adjust your insurance plan so it continues to meet your needs.

Overlooking income protection

Many people focus on life insurance but don’t consider income protection, assuming ACC will cover them if they can’t work. However, ACC only covers accidental injuries—not illnesses. If you were unable to work for an extended period, how would you manage your everyday expenses?

How we can help: We can explain how income protection works and help tailor it to your budget and financial situation, giving you peace of mind that your income is protected if the unexpected happens.

Do you have any questions?

Taking out is about knowing you have the right cover in place for your life, now and in the future. Working with an Insurance Link adviser can help you avoid these common mistakes, making sure your policy is tailored to your needs, budget, and long-term goals.

If you’d like expert, friendly advice on your insurance options, get in touch today. We’re here to help you feel confident in your choices, every step of the way.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek financial advice.

A full disclosure statement for each Insurance Link Adviser is available on request and free of charge.