Intangible Assets

How to make sure you and your loved ones are protected, no matter what happens

Kiwi women are good at taking responsibility; we are equally adept at managing family and finances. But for all our juggling skills, there is a ball many of us haven’t even realised we’re dropping. AIA New Zealand’s chief administration officer Nadine Tereora reveals how to ensure you and your loved ones are protected, come what may.

As a woman in business, I understand the financial responsibilities faced by many Kiwi women. My husband recently started his own business and we have two girls aged three and five, so my income and my ability to work are fundamental to my family’s welfare. I am very focused on protecting that and have the insurance I need to do so.

Society is trending towards women taking on more financial responsibility as the typical family structure is changing, with many women now doing everything from earning the money to paying the bills and looking after the financial future of their families. However, one thing that is commonly overlooked by both men and women is the ability to provide for their families in the event they cannot work because of illness, accident or even death.
It’s not ignorance or carelessness, it’s a Kiwi thing. We think we’re invincible, but the truth is, you never know what’s going to happen.

Think of the Canterbury earthquakes and Queensland floods: if something disastrous and beyond your control affected your business, and that business supports you and your family, what measures are in place to protect your business and your family?

There are enlightening statistics as to the probability of death among business owners: for three partners in business with an average age of 35, the probability of at least one partner dying before age 65 is 41 percent. For four partners in business, it’s 51 percent.
It does make you think, doesn’t it?

Many, if not most, people protect their possessions, but they fail to protect their own lives and livelihood, and this mental ‘gap’ constitutes one of the biggest challenges facing people starting businesses – understanding what their risks are. Risk assessment is critical. Without this, getting the right insurance is guesswork at best.

The good news is that it’s a lot less complex than it sounds. The first rule is, don’t be daunted – seek out a good financial adviser and you’re halfway there. Find one who will take you through your life and business activities, leaving no stone unturned.

When developing an insurance plan, don’t be afraid of hard questions. Equally, don’t be afraid to ask tough questions yourself – it’s your life. You should expect your adviser to take you through a robust process to ascertain exactly what your risks are, and then to present you with a customised insurance plan that will work to protect you and your business interests.

One useful tool for this purpose is the AIA New Zealand Business Lifestyle Check. This is a free service provided by an AIA Insurance Adviser who will help you understand what are your business and lifestyle needs and the different types of cover you may require.

A good adviser will ensure you fully understand your plan and policies, offer you ongoing support, and check in with you regularly to make sure your cover is updated in line with your changing needs. An insurance plan should be revisited every 12 months.
If you need to make a claim, your adviser will act on your behalf with the insurance company. In stressful times, this can be extremely helpful, as your adviser understands your situation, already has a good relationship with the insurer and can take you through the claims process while ensuring you receive the best possible care.

The right financial protection can be the difference between the protection of your dream or its loss. Take control – it’s all in your hands.

Better business protection
In the past, it was difficult for new businesses to secure affordable business insurance because they were seen by insurers as being too high risk. To fill that gap, AIA New Zealand introduced New to Business Cover, which provides up to $8,000 per month if you or a key person in your business is unable to work due to accident or illness.

At the same time, the company launched Business Continuation Cover for established businesses (more than four years old), providing cover of up to $50,000 per month.
As the business owner, it is up to you how you use the funds; for instance, to pay your debts and expenses, hire replacement staff or buy new stock. It’s a financial safety net to ensure your business can continue even if you or a key person is unable to work.

AIA New Zealand’s Business Lifestyle Check will develop an appropriate business succession plan and provide the assurance that you have the right protection in place.
To arrange an appointment with an AIA Business Insurance Adviser, call 0800 800 242, or for more information visit www.aia.co.nz


Dire diagnosis
Recently, AIA New Zealand handled the case of Elizabeth, a 52-year-old business owner diagnosed with breast cancer.*

Elizabeth’s cover with AIA meant that she received an income replacement benefit during many months of arduous treatment, including major surgery and chemotherapy. At one stage, she was seriously ill and deemed unlikely to survive.

Her AIA case manager stayed in regular contact, and Elizabeth was able to concentrate on herself and her treatment without financial stress.

Elizabeth had a remarkable response to the treatment, and 10 months later was well enough to perform her occupation part time. She continued to receive partial benefit payments from AIA for another four months, at which time she had returned to full-time work.

^{_{*Some details have been changed for privacy reasons.}}