More than two-thirds of Kiwis are underinsured
Source: Middle East Insurance Review | Jan 2023
A new research has revealed that around 70% New Zealanders are significantly underinsured and are putting their loved ones at risk, according to a new research report Money and You – Taking Cover from the New Zealand Financial Services Council (FSC).
The research included a representative survey of over 2,000 New Zealanders. It found that around 70% of New Zealanders are underinsured, putting their families and dependents at risk. Only 11% of respondents reported having income protection insurance, 14% have total and permanent disability insurance and 18% have cover for trauma or critical illness.
While respondents reported greater uptake of life insurance (38%) and health insurance (32%), an overwhelming percentage of the population is not covered should the worst happen.
The report revealed that almost nine in 10 New Zealanders will be financially impacted should they lose their jobs and eight in 10 would struggle to support their kids and partners should they get into an accident that results in permanent disability.
Around 80% of the New Zealanders would face financial difficulties if faced with trauma or critical illness that left them unable to earn a living or look after their families.
Even with higher levels of life and health insurance there are still six in 10 whose families would be left to cover things like funeral expenses, mortgage repayments and make ends meet with a loss of income should they suddenly pass away.
Almost seven in 10 New Zealanders do not have health insurance, meaning they are relying on an overwhelmed public health system with increasing wait times.
This underinsurance would not be ringing alarm bells if New Zealanders were prepared for financial shocks, but other researches by the FSC revealed that two in five people would be unable to access NZ$5,000 ($3,200) if something unexpected were to happen. M