Life Insurance

What is Life Insurance?

A lump sum payment for your partner or family in the unfortunate circumstance of your death.

We may like to think ‘it will never happen to me’ but as sure as we are born - we will die. And sometimes we die prematurely leaving family and loved ones behind. The key question is what plans have you made to ensure your family can survive comfortably without you?

Life Cover can provide a lump-sum payment to your partner and loved ones when you die.

Life Cover really is essential for those with family, business or other financial commitments.

Good reasons to have Life Insurance:

- Mortgage Repayments
- Day to day living expenses
- Raising children
- Protecting retirement savings
- Funeral Expenses

Who really needs life insurance?

Life Insurance is really for those people who are financially dependant on you so it’s really important if your death is going to impact on them. Whether you want to clear debts, provide for your family’s living needs or take care of funeral costs, life insurance is the way to make sure it happens.

How much Life Insurance do I need?

Paragon advisers use a thorough fact finding process to determine your needs.It is important you get the right amount. Too little could mean the people you care about aren’t taken care of and too much could mean you are wasting money on insurance premiums.

The starting facts:

In 2022, NZ largest insurer at the time, AIA, paid out a total of $233.8 m in life insurance claims.

47% of all Life Insurance claims paid by AIA in 2022 were for cancer.

Cancer is the most common life claim cause across all age bands.

Cardiovascular causes were the second most common life claim cause in 2022.

Trauma Insurance

What is Trauma Insurance?

A lump sum payment to help you and your family if you suffer a critical illness.

This is ideal to pay your immediate costs and offer financial security at a difficult time. Trauma Insurance is all about survival.  Are you prepared for serious illness?  It’s a fact of life that we all get sick - and sometimes seriously.  The cost of recovery from an illness like cancer or a heart attack can have a huge impact on your ability to meet your living expenses.

Trauma Insurance is designed to pay a lump sum in the event of you suffering one of a number of specified critical conditions.

Good reasons to have Trauma Insurance:

- Financial Survival – many patients survive an illness only to be crippled financially
- Treatment Expenses
- Loss of Earnings
- Protection for children
- Medical advancements

How does Trauma Insurance work?

With Trauma Insurance you choose the lump sum which will be paid out should you suffer one of the list of conditions that the policy offer covers for.  You can use the lump sum for whatever you want.

What kind of conditions are we talking about?

Paragon advisers use a thorough fact finding process to determine your needs.It is important you get the right amount. Too little could mean the people you care about aren’t taken care of and too much could mean you are wasting money on insurance premiums.

The starting facts:

AIA paid out $126.3 m in Trauma Insurance and Total Permanent Disablement claims in 2022.

Cancer claims payment made up 59% of total Trauma Insurance claims in 2022.

Cancer was the leading cause of claims across all age groups with the highest claims associated to the 40-49 and 50-59 age groups.

Source:  AIA claims statistics as at 31 December 2022.

What is Income Protection?

This guards your greatest asset: your power to earn.

It means a monthly payment if you cannot work due to sickness or injury. Most of us insure our assets – but are you protecting your greatest asset – your ability to earn? Just because your health suffers a setback, your financial wellbeing doesn’t have to. When illness and accidents leave you unable to work, disability income protection can protect you from the consequences.

Disability Income Protection provides you with a monthly payment if you are unable to work, due to illness or injury with individual guidelines depending on the provider.

Good reasons to have Disability Income Protection:

- Unexpected illness
- Keeping your household running
- A chance to recuperate
- A quick return to work or a new vocation

Who needs disability income protection?

Your current circumstance determine this and your Paragon adviser will complete a needs analysis to determine if you need it. As a general rule if your quality of life depends on your income, disability income protection is worth considering.

How long can I claim for?

Your income protection plan will give you a choice of how long your benefit is paid for. Often the choice will be 2 or 5 years or to age 65. The option of to age 65 offers the best protection but is more expensive than a 2 or 5 year benefit.

The starting facts:

AIA paid out a total of $74.4 m in Disability Income protection claims in 2022.

Mental health claim payments made up 25% of all AIA's Disability Income claims across all age bands in 2022.

Medical Insurance

What is Medical Insurance?

This insurance pays the costs of hospital care, surgery and other major medical expenses.

We choose the cars we drive, the areas in which we live and the schools our children attend – so why leave the choice of major medical care up to someone else?  With private medical insurance you are in control.  It helps you access the very best medical expertise at a time that suits you, and in a hospital of your choice.

Medical insurance provides a host of choices, whether you just require cover for ‘big’ items such as surgery or whether you want to include other medical costs such as specialists and GP visits.

Good reasons to have Medical Insurance:

- Freedom to select the best hospitals and specialist
- Avoid waiting lists
- 100% reimbursement of major surgery items
- Up to $250,000 per life assured per year

Do I need medical insurance?

People often insure their home or car but forget to take care of their health. We don’t know what kind of health problems will affect us, or when they will emerge.  Think about what would happen if you were faced with a serious health issue….. would you be able to get the treatment you need, at a time and place or your choice? If not, then medical insurance is the way to go.

Can I wait until I’m older to get medical insurance?

It’s important to get cover while you are healthy.  If you suffer a sickness or injury prior to getting covered, that condition may be permanently excluded from your cover.

Example costs of treatment:

Hip Replacement $28,000 - $29,000

Hysterectomy $15,000 - $25,000

Angioplasty $17,500 - $31,000

Heart Bypass Surgery $40,000 - $55,000

Prostate Brachytherapy $30,000 - $35,000

Full Knee Replacement $22,000 - $28,000

Total Permanent Disablement

What is Total Permanent Disablement Insurance?

A lump sum payment to help you or your family if you become permanently disabled.

Life doesn’t always turn out the way we plan. Sometimes we become ill, or have an accident and, if it’s serious, we might be left unable to work.  How would you and your family cope if you were permanently disabled?

Good reasons to have TPD cover:

- Mortgage Repayments
- Day to day living expenses
- Raising children
- Protecting retirement savings
- Funeral Expenses

Business Insurance

What is Business Insurance?

Total insurance solutions designed specifically to protect your business.

The Paragon team provide specialist advice to ensure that when the unexpected happens, you and your loved ones have choices to ensure your goals and visions are still a reality. There are more than 350,000 businesses in New Zealand, and the vast majority are small-to-medium sized.  Each gives its owners and their families an income, a career, security and eventually an investment to sell. Succeeding in business is challenging enough, without having to worry about the unexpected consequences of illness, injury or death.

Are you aware of all the risks that are relevant to your business?

Good reasons to have Business Insurance:

Protecting a business against the loss of its principals and key staff is an important function of any business insurance plan.  

Generally business insurance is broken down into 3 areas:

- Business partner / shareholder protection
- Loan protection
- Key person protection

How do I know what insurance cover I need in my business?

Paragon advisers are specialists in getting to know your business and the associated risks.  By sitting down with you, they will be able to make recommendations to ensure the continuity of your business in the event of adversity.