Many New Zealanders are financially prepared when it comes to a cracked windscreen, or a burglary, with insurance covering those inconveniences off.
But there’s one thing most are not insured for, which some experts say is the most important.
Losing a job. Something that happens to around 55,000 Kiwis every year.
Carissa Fairbrother, financial advisor, told Seven Sharp only about 15 per cent of New Zealanders are prepared in that event.
“Which is staggering considering that 97 per cent of us are really happy and comfortable enough to insure our house and our contents and our cars,” said Ms Fairbrother.
She said it’s important for people to remember to prioritise people and income before possessions.
“I think what we forget is that our biggest asset is actually the machine which makes the money which is us, which is you. Your ability to earn over your lifetime is your biggest asset,” said Ms Fairbrother.
“In New Zealand you know we’re happy with bricks and mortar and things that we can touch but we’re not born financial planners and we have a real ‘she’ll be right’ attitude.”
She told Seven Sharp it’s not good enough.
“We need to get better at planning,” said Ms Fairbrother.
And, she said, it’s not really that expensive either.
“It’s a bit of a misconception. It is if you have everything and all the bells and whistles and do the maximum, but say if you earn $60,0000 you might only need to have the mortgage payments of $24,000 a year covered and it's easier to lose your mortgage payments than it is to lose your house in the worst case,” she said.
“I say about two to four per cent of someone’s household income is gonna fit the mark. But it’s really important to get expert advise and its not really a do it yourself in most scenarios.“
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