In these uncertain times one of the biggest stresses after the welfare of our own health and those of our loved ones is our financial wellbeing.  As such we are monitoring closely the assistance that could be on offer from banks, insurance agencies and the Government.  These measures are constantly changing and we want to make sure you have access to the most up to date and accurate information as it comes to hand.  This page will be updated as the information comes to hand. 

Insurance:  In times of financial stress this is often the first thing to be cancelled but during this time never has it been so important to retain the integrity of the covers you may have in place.  Some Insurance companies have already implemented measures such as the following:

                                Asteron – LUMP SUM COVERS: -  Premium holidays (a built-in benefit which allows customers to stop paying premiums for up to six months if they’re unemployed or experiencing financial hardship. Claims are still able to be made during this time.), Premium Freezes (allows customers to freeze their stepped premium on lump sum covers for 12 months. This option reduces the lump sum benefit and applies from the policy anniversary)

·         Income protection covers - Premium and cover suspension – (allows customers to suspend their premiums and cover for up to 12 months if they are experiencing financial hardship or are unemployed or on long-term leave from work. Cover can be reinstated at any point within the 12 months without further medical underwriting. Any conditions which first occur while the customer is on a premium and cover suspension will not be claimable, either during the suspension period or once cover is reinstated) 

Cigna (OnePath) – currently developing a hardship p0olicy specifically for those struggling to pay premiums doue to the financial impact of the virus.

• Built in product benefits – (Suspension of cover for up to 3 months – then able to reinstate cover with no medical assessments) .
• Premium cover – if you have this product your premiums can be paid for up to 6 months if made redundant or declared bankrupt.
• They do not cancel policies until at least two months of premiums have been missed, meaning coverage extends for a number of months even when premiums have been missed.

  Banks/Lending:  at this stage there is no update on the measures that banks are taking in order to address the financial stress people will be under.  However the Government has been in touch with the banks and putting pressure on them to help out and we expect they will come back with some assistance.  Watch this space. 

                Meanwhile measures that could assist (within the bank’s current lending criteria) are:

                                                Asking for loans to go on to interest only

                                                Topping up existing lending

                                                Pulling out available funds in current home loans (eg if you have paid off your loan faster than the minimum payments some banks will allow you pull those extra funds out)

If you require any assistance we encourage you to contact your Advisor ideally by email (as you can understand we are experiencing a high level of enquiries at this time and emails are the best way to get the response required in a timely manner). 

GOVERNMENT ASSISTANCE:

Here are useful links giving information on what the Government is able to offer insert links https://www.workandincome.govt.nz/products/a-z-benefits/covid-19-support.html#null

No doubt, in the coming days and weeks, there are likely to be further updates from banks and insurers with a number of other measures to help those affected by the economic effects of COVID-19, and we will be sure to keep you in touch with developments as they happen.

This post was written by

Simone Hojabri - who has written 2 posts