As an insurance adviser, every time I see a givealittle campaign being advertised to support someone to whom something awful has happened, I can’t help but pause and ponder.

I  ponder the role of the philanthropic, the role of the state and the role of the insurance adviser and private insurance… in the tragic moments of our lives.

Why is it that we need givealittle at all?

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I write this blog with some trepidation as:

• I know people who have personally benefited from the proceeds of these campaigns
• Very often, it is other well-meaning people around the victim / benefactor who has started the campaign, mostly with the blessing of the receiver, but sometimes very reluctantly and sometimes not at all.
• I have used givealittle to fundraise myself (and yes, it was for the Orphans in Africa, but that is a whole other conversation)

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So, no judgements here, only ponderings…

I ponder what the role of insurance is in the NZ psyche, as it seems to me that at times of crises this is the exact time that our insurance needs to step up.  

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If people like me have been doing our job, the givealittle campaigns should be the ‘icing on the top,’ rather than required to save lives or rescue families in desperate situations.

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Did you know, that is someone dies in an accident in NZ, then ACC will pay money to the surviving spouse and dependents.  This is generally a one-off initial payment and then ongoing payments are made to cover loss of income.

If someone gets sick or has an accident and is physically impacted by this accident, trauma insurance will pay a lump sum out to support the costs involved in an event like this, for the person and their family.

If someone has cancer treatment to cover, the correct private medical cover will cover the treatment for this, even if the treatment isn’t funded by Pharmac.

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I am all too well aware for many in our country, any insurance premiums are an expense that simply doesn’t fit in to the budget. The reality is that for many there is no other option than to depend on ACC, Pharmac, the NZ Health system, and Government social support.

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Unfortunately, a quick look on what's on givealittle however quickly reveals the gaps in our social systems.

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For those who can afford some private insurance premiums each month…PLEASE seriously consider this spend.

‍It is my understanding of the statistics that keep me motivated to have insurance conversations with my clients:

• 1 in 3 of us will get some form of cancer diagnosis in our lifetime
• 20% of us kiwi men will die before we are 65 (12% of women)
• 40% of kiwis will be off work for an average 6 months in their working life

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I really hope that you and I aren’t in those stats..  but I do think we need to ponder them, get insured and hope we don’t ever need to use that insurance we are paying for.

No one ever wants to end up in a givealittle campaign. If you have the option to put some insurance in place yourself, it is well worth exploring the options.

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Brendon.

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Brendon Ojala (FSP119244) is a Financial Adviser with Velocity Financial (FSP95466). No investment decision should be taken based on the information in this blog alone. Please see Brendon’s disclosure statement on our website.

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About Brendon:

Hi, I'm Brendon, one of the owners and advisers at Velocity Financial. I have been giving advice on mortgages and insurances at Velocity for around 15 years, and it is great to be able to work with people to achieve their financial goals. Prior to giving money advice I worked as a youth worker and managed teams for a not for profit organisation. I live with my wife and one of my sons (the other one only stays when he needs food) in Berhampore, and if I'm not talking revolving credit accounts I can be found running the trails of Wellington.

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