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How insurance helps achieve peace of mind

Financial, personal and mental wellbeing - they're all interconnected. And one can argue that there's never been a time like this to take care of your overall wellbeing.

So, how does insurance help? Here are some facts, stats and tips for you.

Measuring Kiwis' financial resilience

In March 2020, just as Covid-19 was becoming a reality here in New Zealand, the Financial Services Council (FSC) started tracking Kiwis' financial confidence and wellbeing.

The situation is still evolving, but the FSC's 2021 Financial Resilience Index published in May 2021 already provides an interesting picture of Kiwis' views and perceptions.

While financial confidence had dropped between April 2020 and April 2021, 81 per cent of Kiwis were still financially confident - an encouraging sign, in spite of the uncertainty. On the other hand, money was a concern for many: 22.6 per cent of respondents worried about money daily, 21.7 per cent weekly, 17.6 per cent monthly, and 19 per cent a few times a year. Only one in five New Zealanders surveyed said that they rarely/never worried about their finances.

What's more, the survey found an increase in financial issues affecting Kiwis' wellbeing, namely their physical health (40.1 per cent of respondents), mental health (54.6 per cent), relationships (51.2 per cent), or even all these factors together (55.6 per cent).

Changing global perspectives

Insurance is all about peace of mind. While there's no denying that the future is always uncertain, even more so in these unprecedented times, getting appropriate cover allows you to create a 'safety net' for some of your most likely risks.

It's not a coincidence that Covid-19 is changing consumers' views on insurance. According to Swiss Re Institute's 2021 APAC survey, as the result of the pandemic, more and more people are considering protecting their financial future and their health. Whether that's taking out health cover, life cover or income protection, many around the world are looking for ways to boost their resilience to future events.

Another recent report, this time from Ernst and Young, found that the pandemic shifted financial wellbeing, prompting interest in new and existing forms of insurance protection. Half of respondents said they planned to save more, 30 per cent wanted to develop emergency plans, and 23 per cent planned to talk to a financial adviser.

The overarching message is that Covid-19 has highlighted financial vulnerability - and people would like to avoid being caught out again.

Looking for cover?

At LifeDirect, we believe in the benefit of having financial protection, and we're here to help people from all walks of life find appropriate cover for their needs.

It could be health insurance, designed to help you avoid waiting lists and get faster diagnosis and treatment. Or it could be income protection, giving you a replacement income if you're unable to work. Mortgage protection could safeguard your family's home, while Trauma insurance could assist you financially after a serious medical diagnosis. And lastly, life insurance would be there for your loved ones when they need it most.

Not sure what you might need? Our quote compare tool is a good place to start, and if you have any questions about your insurance options, please don't hesitate to contact us. You can call our friendly adviser team on 0800 800 400, or click here to send us a message.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

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