Media release 14 October 2009

New Sorted calculator helps New Zealanders make good decisions about insurance

New material just launched on Sorted.org.nz aims to help New Zealanders work out their insurance needs, particularly the one third who say they don’t know enough about insurance to make informed decisions.

Retirement Commissioner Diana Crossan says protecting yourself through insurance is an important part of taking control of your life and finances.

“We recently asked New Zealanders if they feel they know enough about insurance to make good decisions about buying or cancelling policies. More than 30 per cent said they didn’t. That’s a worry because insurance is a way to protect you and your family from financial loss if the unexpected happens.”

The Retirement Commission survey also shows that even during the recession, the vast majority of New Zealanders with insurance haven’t decreased their amount of cover.

Only 4 per cent of New Zealanders surveyed had decreased the amount of cover over the past year, and only half of those had done so because they could no longer afford all the policies. Nearly a quarter of New Zealanders had increased their cover.

“Getting the right amount of cover is a very personal thing. It depends on how much risk you are prepared to carry, what assets you want to insure, whether or not you have dependants and how much you can afford in premiums.

“We have developed an insurance calculator that allows people to factor in their own personal circumstances so they can work out what cover is right for them. It includes insurance options from house and contents, vehicle, life and health, and income and debt protection,” said Diana Crossan.

“This is the first time New Zealanders have had access to a free and independent insurance calculator.”

People with no insurance can work out what they might need and what it will cost, and those with insurance can check if their current cover and what they’re paying is appropriate.

A new booklet, “Insurance – Protecting what’s important to you” - is also available from sorted.org.nz/ordering or by calling 0800 SORT MONEY (767 866).

www.sorted.org.nz/calculator/insurance

Below: Results of Retirement Commission insurance survey

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