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      Spratt Insurance Brokers
Head Office
Level 1, Spratt Financial Centre
3 Morton Street
Freeman's Bay 1010
Phone 09 307 8200
Fax 09 307 8204
Mail Address
PO Box 99481
Newmarket
Auckland City 1149
Email: enquiry@sprattfinancial.co.nz
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Insurance: The Real Risks and Statistics.

  • Medical conditions and illnesses account for 94% of deaths in New Zealand, or around 27,260 people.
  • Of all deaths, 65% or 19,000 are due to heart disease, cancer and stroke. Cancer is the leading cause with 8,750 deaths
  • Of the 29,000 deaths only a mere 3% are sudden (accident, injury, unexpected or undiagnosed conditions).
  • The cause of extended disabilities among New Zealanders in recent years have been only 16% due to accidents and 84% due to medical conditions and illnesses for which there is no ACC cover.
  • More than one in five adults (21%) experience chronic pain, up from 17% ten years ago, according to the newest official NZ Health Survey. Chronic pain can be a key factor in protracted disablements and possible loss of income.
  • A working couple in New Zealand has a one in three chance of having one of its members suffer a critical illness before the age of 65.
In our years of experience dealing with insurance, the biggest mistake we find that people make is assumptions about their health and what can happen. Unfortunately, the fact is that in the great majority of cases New Zealanders will face a prolonged period of degenerative illness, during which you can be unable to return to independent living and unable to continue earning a living. This can leave you or your family with a terrible burden of unpaid debt, mortgage, bills and being unable to provide for yourself and your family.

The positive news is that in the majority of cases, there is a good chance of a full medical recovery. However, without the right insurance cover, there is less likelihood of making a similar financial recovery. It is a worrying fact that the majority of clients we meet believe they are covered when in fact their cover is highly inadequate to meet their financial needs in the event of a crisis. That is where we come in. The insurance brokers at Spratt Financial Services understand what can go wrong and have decades of experience protecting New Zealanders' lifestyles from unforeseen events that can and do happen.

The Story of Justin and ABC Engineering

Although the names have been changed, this case study about Justin and his business is a real life case that Spratt Financial Services managed. It helps to highlight the impact that having robust, accurate advice from Spratt Financial Services made when Justin, the company’s managing director, was diagnosed with a terminal illness. 

Background
  • Justin held a key position as Managing Director of ABC Engineering, a Wellington based company specialising in post-production services.
  • ABC Engineering employed a total staff of sixteen and had an annual turnover of $3.9 million.
  • Justin's role also encompassed establishing and maintaining critical client relationships. A large portion of the company's income was directly attributed to Justin's relationships with several major clients. 
  • The company had estimated the amount of time needed to effectively replace Justin's critical business role at six months. 
The Disability Claim
When Justin found himself unable to work due to his illness, his salary from ABC Engineering was discontinued. In the absence of the specially configured protection from Spratt Financial, he and his family would have found themselves unable to support themselves through their trying time. Thankfully, Justin had enlisted us to provide him with protection, and our tailored cover ensured that:
  • A disability claim was paid after only four days for five weeks (hospitalisation benefit), and was started again after seventeen weeks, at the end of the waiting period.
  • A personal income of $9,250 a month was paid to Justin so that his family was supported financially.
  • No financial evidence or complicated procedures were required for the claim.
The Trauma Claim
Within 26 days of initial exploratory surgery in July 1993:
  • ABC Engineering received $350,000 which cleared all critical debt, covered revenue for three months and provided recruitment costs.
  • Justin's family received $160,000 which cleared all debt and created an income reserve of $56,000.
The Permanent Disability Claim
21 months into Justin's disablement process:
  • The business received $550,000 which gave them capital to reinvest into maintaining their competitive edge in the marketplace.
  • Justin's family received $150,000 which safeguarded his daughter's education and provided a significant cash reserve for his family.
Terminal Illness Claim
  • ABC Engineering received the remaining $300,000 creating further artificial revenue for the business.
  • Justin's family received the remainder of its entitlement; $1,026,000 which paid financial expenses, paid professional fees, and created a significant capital reserve for family income.
During That Time & To This Day
The following people kept their client, ensuring that the benefits of our protection extended outside of even Justin, his family and his business:
  • Justin's accountant.
  • Justin's solicitor.
  • Justin's financial planner.
  • Justin's bankers.

The insurance that our insurance brokers provided formed a key part of ABC Engineering’s survival plan. Because of the protection we tailored, Justin’s company was able to command its own destiny by being able to control debt and having the funds allocated to protect the future prosperity of the business. 

To learn more about how Spratt Financial Services can help you achieve these same outcomes for you, your family or your business, send us an email at enquiry@sprattfinancial.co.nz, or call one of our professional advisors on 09 307 8200.