March 16, 2016

New Zealanders lack insurance on their most important asset

What is your most important asset?

OPINION

Owning something valuable, such as a house, car or boat, without insuring it means taking a huge financial risk.

For that reason, around 95 per cent of New Zealanders have insurance to protect themselves from loss due to disaster, accident or theft. However, when it comes to their most valuable asset, the majority have little or no insurance cover.

Ask the average person what their most valuable asset is, and it is likely they will reply that it is their home. In general, this is not true. The most valuable asset of any person under the age of about 50 is their future income. Most people will earn between $1 million and $2m in their lifetime. Some will earn significantly more.

Take away the ability to earn that income and the financial consequences are disastrous.

Read the fulll article on Stuff