Insurance – Another Way To Be Proactive About Your Health

Running from Health Insurance ExpensesOnePath recently published the following article about health and trauma insurance.

Being proactive about your health isn’t just about staying healthy and having regular check-ups.  Unfortunately illnesses such as breast or prostate cancer can strike anyone at any age, regardless of their lifestyle – and when it does, it pays to be protected. [Read more...]

Do I Need Health Insurance?

Health insurance for legal professionalsWhy do I need Health Insurance?  Here we answer 9 commonly asked questions. 

 

1. Do I Really Need Insurance?

Although it may be easy to adopt an attitude of ‘it won’t happen to me’, it is a statistical fact that you will require hospitalisation or surgery at some point in your life – in some cases two or three times. Whatever your viewpoint as to whether medical treatment should be taken care of by government, the only way to ensure that you and your family will receive prompt and proper treatment is by taking out heath & medical insurance. Although cover may seem unnecessary at times, the alternative of having to shoulder large treatment expenses makes the cost of premiums a low price to pay.

2. Which Type Of Cover Is Best?

The main reasons for having health or medical insurance are to protect yourself against the risk of having to pay for your own treatment and to obtain the best possible care with the least amount of delay or stress. A hospital & surgical or hospital & specialist policy will provide a basic level of cover and the payment of additional premium to protect yourself against smaller, more predictable GP bills or optical & dental expenses may not be cost effective in the long term. As to which specific plan is the best for you, there are a number of variables which our advisors can explain – take a couple of minutes to get in touch and we can talk you through some options.

3. Who Has The Best Health Insurance Policy?

It depends. [Read more...]

Death or serious illness of a Partner or Shareholder in your business

The untimely death of a key shareholder can have far greater downstream effects than the initial impact on the company and staff.  Customer confidence can be dented; debtors and creditors made nervous and unscrupulous competitors can move to capitalize on any perceived instability in your business.

Without close management, external ‘perception’ can extend and exacerbate any initial drop in revenue or increase in costs and the end result on the bottom line can be crushing.  Sadly this is when some businesses fail, which only compounds the distress of family members and business partners.

To protect against this there is a variety of insurance covers, including Partners or Shareholders Insurance.  This insurance allows the business to carry on smoothly in the event of the death or disability of one of the partners or shareholders.  The remaining partners/shareholders can retain control of the business while paying a fair price to the beneficiaries of the deceased or disabled partner and not have incurred additional potentially crippling debt.  Shareholders insurance used properly is the most cost effective way of funding a buy/sell agreement and it is the only way that guarantees you a certain and predictable outcome.

For example, if one of your partners/shareholders dies, their voting rights (that directly affect the running of the company) will pass to his/her dependants – your new business partner.  The dependants now have a say in the running of the company and may decide to sell their shares.  Unless the other partners/shareholders have sufficient funds to buy them, they may have no option but to sell them to a third party – even a direct competitor.

We recommend that you include Partner/Shareholder insurance and possibly Key Person Insurance in your business plan.  If you need any help or would like to discuss this further, please contact us.

ACC Cover versus Income Protection Insurance – know the difference

The Ins and Outs of ACC have been well-covered and debated in the media recently.  We often get asked about the merits of ACC cover versus income protection insurance when in reality the best result for those insured is a combination of both.

But it’s important not to confuse ACC cover with income protection – it is not called the Accident Compensation Corporation for nothing.  Illness and injury claims are not covered by ACC and even in cases of accidental injury the ACC can ask you to prove your income before you receive payment – which can slow down compensation.

If you are a shareholder employee, partner or sole proprietor earning non-salaried drawings, it’s worth noting that you won’t receive payment from ACC unless you can show a loss of company income as a direct result of your accident.  If there is no subsequent loss of earnings, you will only be entitled to sick pay.

If you want to have all bases covered, you’re better to choose a combination of ACC and income protection insurance.  This means you can insure more income across a wider range of circumstances – both illness and injury not just accident alone.  An accident is defined as A+B=C so injury and progressive or on-going degenerative conditions are not covered by ACC.

As with most things, being forewarned is forearmed, so don’t wait until you have an accident to make sure you know exactly how much money you will receive in compensation payments.

Finally, we recommend that you make your money work for you by avoiding doubling up on ACC and income protection cover.  A timely discussion with ACC to lock in the amount of cover ACC will provide regardless of continued income, will give you a good base from which you can build any additional insurance cover – illness and injury are just as likely to cause loss of income as an accident.  If you need any help or would like us to organise ACC and supplementary insurance cover on your behalf, just give us a call.