“Only when we are no longer afraid, do we begin to live.”
— Dorothy Thompson, Famous American Journalist
Fear comes in many forms.
The fear of death is profound, but often intangible. The fear of losing your hard-earned assets—your car, your house—is more real. But perhaps the greatest fear is how your loved ones would survive if something were to happen to you.
The uncertainties of life—rising health issues, accidents, pandemics, even economic instability—only add to these anxieties. While fear may be inevitable, insurance can help minimize its impact. Here are five essential insurance covers every individual must have:
1. Term Life Insurance
This is the most basic and affordable form of life insurance—a no-frills policy meant purely for protection. It pays out a lump sum to your dependents if you pass away during the policy term. If you have, or expect to have, dependents in the future, this is a must-have.
🔹 Tip: Look for a level premium plan that stays affordable long-term—till age 65 or even 80.
🔹 Consider combining a lump-sum benefit with a Family Income Plan to ensure both debt clearance and day-to-day support for your family.
Checklist Before You Buy:
Get quotes from at least 3 reputable insurers
Choose the lowest premium for the longest term
Be honest about your medical history
Inform your nominees
2. Health Insurance
With rising healthcare costs and limited public resources, health insurance is no longer a luxury—it’s a necessity.
Two main types:
Basic hospitalisation cover
Plans that include diagnostics, specialist treatment, and daily cash allowances
🔹 Even if your employer provides cover, you should have your own policy.
🔹 Higher deductibles (excess) lower premiums, but don’t overdo it—especially while you’re young and healthy.
What to Check:
Limits and inclusions/exclusions
Excess (deductible) and its future flexibility
Quality of cover vs. premium
Future changes that insurers are allowed to make
Mandatory medical tests
3. Income Protection Insurance
Your ability to earn is your biggest financial asset. Imagine losing that due to illness or disability. Could you still pay your mortgage, school fees, or daily bills?
🔹 Income protection policies cover up to 75% of your gross income
🔹 Premiums are tax-deductible, but claims are taxed (PAYE)
🔹 Choose between indemnity and agreed value contracts carefully
Key Considerations:
Choose a wait period (minimum 4 weeks) that you can financially manage
Check if the policy includes redundancy cover
Choose a longer claim period, especially if you’re worried about long-term disability
4. Motor Insurance
Driving without motor insurance is like driving at night with the headlights off.
At minimum, get Third-Party Liability Insurance—it covers injury/damage to others.
Better still, get Comprehensive Insurance that also covers your vehicle.
🔹 Transfer your No Claim Bonus when switching cars
🔹 Discuss premiums, exclusions, and discount eligibility with your broker
Tips:
Compare premiums and policy wording
Opt for direct-debit payment to lower costs
Always collect your original policy document
5. Home/Contents Insurance
Your home is likely your biggest investment. Protect it from disasters like earthquakes, floods, or fire.
Post-Christchurch, insurers now offer agreed value contracts based on replacement cost. It’s your responsibility to calculate the rebuild cost—use online calculators or consult a quantity surveyor.
Home insurance covers the structure; contents insurance covers valuables inside like electronics, jewellery, and appliances.
Important Steps:
Choose your insurer carefully
List all your belongings and store their purchase bills
Divide items based on the risks (fire, burglary, flood)
Always get a copy of your policy certificate
Final Thoughts
It’s never too late to secure your future. Whether you’re single, married, working, or retired—these five insurance covers are essential to protect your life, income, health, vehicle, and home.
If you don’t have them yet, start today. Fear may be inevitable, but with the right protection, it doesn’t have to rule your life.
