Personal Insurance: Banks vs Advisers - What You Need to Know
When it comes to protecting yourself and your family, personal insurance is one of the most important decisions you can make. But not all policies are created equal - and where you get your cover matters just as much as what’s in it.
In New Zealand, many people turn to their bank for insurance when they are getting a mortgage, assuming it’s simple and convenient. While bank policies can be accessible, there are some key differences that could make a big difference if you ever need to make a claim.
🏦 Bank Policies: Simple, but limited
Bank-provided personal insurance often comes as a straightforward, “one-size-fits-all” option. This can be convenient, but it also has limitations:
Limited trauma cover: Many bank trauma policies only pay out if a serious medical event occurs — for example, a heart attack that results in death or severe permanent damage. Smaller, early-stage events that could still impact your life significantly might not be covered.
Underwriting timing: Some banks don’t fully assess your health when you apply. Instead, they may underwrite at claim time, which can create delays or even affect whether a claim is paid.
Less flexibility: Bank policies are often based around raw numbers, but they don’t talk about what you want to do for your family. They are also restricted to one suite of products that may or may not suit you and your family.
Claim support: It can be difficult knowing who to contact if you have a claim through a bank. They may have their policy underwritten by an another company. This can cause stress and confusion at an already stressful time.
💼 Adviser Access: Tailored cover and stronger support
Working with a professional adviser, like New Vision, gives you access to a wider range of products and benefits:
Comprehensive trauma cover: Adviser-sourced policies can offer more inclusive definitions of trauma events. For instance, some policies pay out for conditions confirmed through a blood test, rather than waiting for a catastrophic event. This means you can get support earlier, when you need it most.
Underwriting at application: The insurers we work with underwrite your health at the time of application, rather than waiting until you make a claim. This reduces uncertainty and increases the likelihood your claim will be paid smoothly.
Tailored solutions: Advisers can design your cover to match your personal situation — your family, lifestyle, health, and financial goals.
Ongoing advocacy: The biggest advantage of working with an adviser comes at claim time. We guide you through the process, help with paperwork, and ensure your claim is handled fairly. This personal support can make a huge difference when you’re dealing with stressful life events.
🌱 Why it matters
The difference isn’t just in the policy wording — it’s in how supported you feel when it matters most. A policy is only as good as its ability to deliver when you need it. Choosing the right cover, with the right advocate behind you, can protect your financial future and give peace of mind.
🤝 Talk to New Vision
At New Vision Financial Services, we help you navigate the world of personal insurance. We compare products across multiple providers to find cover that fits your life, not just a standard template.
If you want insurance that truly works for you — with support before, during, and after a claim — we’re here to help.
📅 Book your complimentary review today and make sure your cover is right for your needs.
👉 Contact New Vision to get started.
Amy Callon
Financial Adviser
New Vision Financial Services
Plan your future and let us help you have peace of mind along the way.