Last month, the BrightNest team set up a stall at the Kōwhai Festival in Warkworth, with a very full jar of jellybeans and plenty of time to chat about personal insurance and KiwiSaver with locals. By the end of the day, two things were clear: First, there are always more jellybeans in the jar than you first think (1,424, for the record). Second, the same may be true of your KiwiSaver and personal insurance (there's more worth checking than you'd expect).
While we learned a lot from the people who stopped by for a chat, four key patterns emerged from our time in Warkworth. If you see yourself in any of them, it could be a good time for a review.
Has your life stage changed?
We met plenty of young families who had moved from one chapter of life into the next: a new baby, a new home, two incomes becoming one for a while. Ari and Mika are a good example. When they bought their first place, the cover they'd set up back when they were renting with no kids suddenly felt a size too small.
A life change often shifts what you'd want protected. Life insurance is designed to pay a lump sum to the people you love if you pass away, while income protection can pay a portion of your regular income if illness or injury stops you working. What made sense five years ago may not match the life you're living now.
Have you just moved to New Zealand?
A number of people we chatted with had recently relocated here and were working out their cover from scratch. Jordan arrived from the UK last year and assumed the policy back home would simply carry over. It didn't.
Insurance arranged overseas may not cover you once you're living here, so it can be worth looking into local cover early. ACC helps with injuries from accidents, but it's designed for accidents only, not illness. KiwiSaver is generally open to New Zealand citizens and people entitled to live here indefinitely, so if that's you, it may be worth checking whether you've joined and how it's set up.
Do you know which KiwiSaver fund you're in?
Lots of people told us they knew they had KiwiSaver but weren't sure who their provider was, let alone which fund they were in. Quinn was automatically enrolled through a first job a decade ago and hadn't looked at it since.
If that sounds familiar, you're far from alone. You can find your provider by logging into myIR and checking the KiwiSaver section, where their contact details are listed too. Your provider can then tell you which fund you're in. We’re here to help you figure out what provider and fund type may be best for you.
When did you last check?
Then there were the people who simply realised it was time. Nothing dramatic had happened. Rowan just couldn't remember the last time they'd looked at their cover.
Pay rises, new debts, and kids growing up or leaving home can all change what you need from your cover and your KiwiSaver, often without you noticing. A regular check in helps make sure your setup keeps pace with the life you have now, not the one you had when you signed up.
How do you start a review?
Whichever pattern sounds like you, a review doesn't need to be a big job. It can start with one short conversation. We offer a free, no obligation 15 minute call. No jargon, no pressure, just a friendly chat about where things sit for you right now.
Disclaimer: The characters and scenarios described are for illustrative purposes only. The content is general information and does not constitute personalised financial advice. Please speak with a licensed financial adviser for advice tailored to your circumstances. Disclosure here.
