New Zealand's sizzling property market has forced many to dig deep just to make ends meet. Weekly rental or mortgage payments can make people feel they are living from payday to payday.
So what happens if you become ill or are made redundant? The Cigna 360° Wellbeing Score (an annual index which identifies the factors, motivations, perceptions and attitudes impacting on health and wellbeing) revealed such scenarios play on many minds.
According to this research, only 16% of New Zealanders feel we would have financial security if they lost their jobs. Over half (53%) are being kept awake at night worrying about finances; 71% rate cost of living as the main social issue.
Money may be keeping us awake at night but we are still spending up large. Reserve Bank of New Zealand figures released earlier this year puts national combined household debt, excluding property, at a staggering half-a-trillion dollars. But, despite this evidence to the contrary, 79% of Kiwis say they don't need any budgeting advice according to the Cigna 360° Wellbeing Survey.
"There could be a number of reasons for this, including the general Kiwi, 'she'll be right' attitude," says Cigna CEO Lance Walker.
That's why Cigna recently announced a new product offering a greater degree of financial surety as a simpler and more affordable alternative to income protection insurance, for example.
Walker says his company knows sometimes things don't go right. Around 55,000 households* are affected by illness or redundancy each year, with family earners forced to take up to three months off.
Financial hardship can all too easily become a reality without a buffer to ward off serious money woes.
Walker said Cigna had become increasingly aware of the need for an affordable alternative to income protection insurance: "This can be too expensive for people who are already struggling to make ends meet."
Cigna's new Mortgage Safe and Rent Safe insurance is designed to be an affordable solution offering a welcome back-up plan for people who may be unable to work due to illness or redundancy.
"It's good to have protection for the biggest expense most of us have. Sometimes it only takes a little bit of insurance to keep a roof over your head if you can't work," he continues.
Mortgage and Rent Safe insurance is a flexible product that can be tailored to budgets and needs, mortgages or rent payments.
This insurance will pay up to 40 per cent of monthly earnings (up to $3,500 a month) for up to two years if you are unable to work due to illness or injury. It will also pay up to $1,750 per month for six months if you are made redundant.
This can be used to cover mortgage or rental payments to help you get back on your feet.
Premiums start at just $20 per month; no medical checks or tests are required. The insurance, which can be purchased online or over the phone, is specifically designed to meet the needs and budget of a wide range of people, with a variety of options.
Walker says having such insurance in place can do a lot to abate the fears we have about our financial future: "Protecting your rent or mortgage payments is one of the easiest options to make certain that you and your loved ones are taken care of if you can't work."
For information on insurance to help cover your Mortgage or Rent repayments, visit www.cigna.co.nz