How Insurance Premiums are Calculated

HospitalHave you ever wondered why insurance premiums on policies like Income protection are higher than those for your house or car?  It's because insurance companies work them out based on probability scales, so in simple terms the chances of you having to claim on loss of income are considerably higher than those of claiming on a house.

  • 75% of all people will suffer a heart attack, stroke or cancer in their lifetime
  • On average 19 New Zealanders have a stroke every day
  • 25% of those who suffer a stroke this year will be under retirement age
  • 50% of all cancer sufferers will still be alive three years after diagnosis
  • 78% of stroke victims will be alive one year later with 32% relying on assistance to do normal daily tasks.

So while you have no doubt insured your house against fire, have you insured your ability to make the mortgage payments if you suffer a serious illness?

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