See ya Simon - a sloth’s death needn’t be in vain

The untimely death of a ‘spokesloth’ has been the catalyst for insurance comparison website LifeDirect by Trade Me to remind Kiwis of the importance of insurance cover for those ‘what if’ moments.

Trade Me Head of Insurance Jaime Monaghan said LifeDirect’s mascot Simon the sloth had an unfortunate accident live on TV last night: “Simon slipped while hiking and unfortunately he’s no longer with us.

“Fortunately he was insured and ready to look after his family. While Simon has gone too soon from our lives, we want to use his death to highlight just how unexpected life can be. It’s not much fun to think about, but Simon’s life needn’t be in vain. He’s a timely reminder of the benefits of having the right cover.”

There’s also a little something in it for Kiwis around the country too - while Simon looked after his family, there’s still $10,000 available from his life insurance policy, and anyone who thinks they deserve it can claim on a special commemorative microsite.

Ms Monaghan said that while the death of a fictional sloth could seem a little frivolous, there was an important message behind it. “Kiwis are underinsured and we want to raise awareness of the benefit of life, health and income protection discussions, hopefully in a more engaging and interesting way than traditionally.

“We’re known in this part of the world for our ‘she’ll be right’ attitude when it comes to the likes of life insurance, but there’s all sorts of research and expert commentary that says New Zealand is lagging behind the rest of the world when it comes to insurance for significant life events.

“Some numbers thrown around indicate that while around 96 per cent of cars and homes in NZ are insured, life insurance, health and income protection sits around 58, 29 and 17 per cent respectively. It’s our mission to get Kiwis to think a bit more about the ‘what ifs’.

“You do not want, at an already stressful time, to have to worry about money - that’s what income protection, life and health insurance are all about. You also don’t have to cover absolutely every base either - a small sum is a lot better than nothing at all.”

Ms Monaghan said LifeDirect understands these conversations aren’t easy. “No one’s idea of a good time is sitting around contemplating their death, injury or a serious health issue but sometimes you need to have those conversations.

“We also understand how complex and intimidating the insurance industry can feel - that’s why we believe in having an open, honest and clear comparison in front of people. We have our staff available to talk people through the various differences in policies, and give you all the information you need to make the decision.

“If you’ve got dependents, a mortgage, or you just want to make sure you’re comfortable in the event of the unexpected, then start thinking about it.”

Ms Monaghan said there was no ‘one size fits all’ but generally people would need enough life insurance cover to pay off their debts, and ensure their loved ones have sufficient funds so that they don’t have to rush back to work. Other considerations include whether you want to leave funds for kids’ schooling, or adventures that you intended to fund from your income.

“Typically we see policies taken out by Kiwis aged 35. We think New Zealanders need to think a bit earlier about what they need to do to look after themselves and their families if the proverbial hits the fan.”

A 40-year-old male, non-smoker without any health concerns gets an average of $550,000 of life cover, costing around $500 per year (range is $482-$622). While the average, 40-year-old female LifeDirect customer (non-smoker without health concerns) gets $470,000 of life cover, costing around $400 per year (range is $374- $521).

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