As Sorted has said nicely, “if you had all the money in the world, we wouldn’t need insurance.”  Yes, we would “self-insure”.  But most of us don’t, so we use insurance covers as an alternative option to cover our risks. 

So, if we shouldn’t compare insurance on price alone, let’s now drill into some of those Special Events, or “bells and whistles”, that an insurance policy may offer.  These maybe already included within your policy, or permit other forms of insurance to be added.

Here are just some of the Special Events that may be automatically included:

• Automatic Indexation – cover keeps pace with inflation.

• Guaranteed Insurability – If you get married, have a child, take out a mortgage, or get divorced, within identified limits, you can increase your cover without having to medically qualify for the increased cover.

• Premium Holiday – resuspending premium for up to 12 months, e.g. overseas travel or tertiary studies.

• Children’s Trauma cover – free cover up to $10,000.

• Funeral Grants – up to $15,000 for adults; $10,000 for children; up to $20,000 for repatriation of body to NZ.

• Financial Planning Grant – up to $2,500.

• Loyalty Discount – up to 10% premium discount for insurer loyalty.

Considering Optional Extras, insurers may allow you to "bundle-in" other kinds of insurance. The benefit here is that you save on administration costs, like Policy Fees.

Here is a limited list of those other kinds of insurance covers:

• Future insurability

• Family Protection Benefit

• Mortgage Repayment insurance

• Disability insurance

• Premium Waiver

• Trauma (or Critical Illness)

• Health insurance

So, if you are starting out, and price isn’t so important, think ahead on what you may want to build-on in the future.  Might any of these policy features be beneficial?