A sensible order for reviewing cover
| Policy | Usually | Why |
|---|---|---|
| House and contents | Keep (reduce extras) | Lenders require house cover; losing it risks the whole asset |
| Health insurance | Keep if you can; reduce cover instead of cancelling | Re-joining later can mean new exclusions for existing conditions |
| Life and trauma | Keep if others depend on you | Premiums rise with age and health; restarting costs more |
| Income protection | Keep, and check for a claim | It may pay out if you lose income through illness or injury (not usually redundancy) |
| Car insurance | Keep third-party at least if you drive | Uninsured damage to others' property can be huge |
| Extended warranties, gadget cover, add-ons | Cancel | Usually poor value |
| Travel insurance | Cancel/pause unless booked | Reinstate before travelling |
- Ask each insurer for a premium reduction, longer payment cycle or hardship option. Many offer a short premium holiday.
- Raise the excess to lower the premium, but only if you could afford the excess.
- Check your KiwiSaver, bank accounts and workplace schemes for hidden insurance (e.g. credit card or loan cover).
Redundancy and 'involuntary unemployment' cover
Some personal loans, credit cards, hire purchase agreements and mortgages come with optional insurance that pays your repayments for a limited time if you lose your job through redundancy. Not everyone knows they have it. Check your loan and card documents, your online banking, and any statements showing an 'insurance premium'.
- Find the policy wording and the insurer's claim line. Look for waiting periods, how soon after redundancy you can claim, and the maximum number of months paid.
- Check exclusions: voluntary redundancy, fixed-term contracts, casual or self-employed work, or notice-period events may not be covered.
- Claim immediately: there are often deadlines (for example within 30 or 60 days). Send the redundancy letter, final payslip, proof of Work and Income registration and your loan account details.
- Keep making payments until you've been told the claim is accepted, unless the lender agrees otherwise in writing.
- If declined, ask for the reasons in writing and complain via the insurer's process, then the external dispute resolution scheme the insurer belongs to (for example the Insurance & Financial Services Ombudsman or Financial Services Complaints Ltd; scheme arrangements have been changing, so ask the insurer which one applies).
Making a claim: a quick checklist
- Date and cause of the event (redundancy letter, medical certificate).
- Policy number and insurer claims line.
- Proof of income before and after, and bank statements.
- Notice of any other payments you'll receive (ACC, Work and Income).
- A written timeline of conversations.
Claim notification email
Subject: Claim notification, policy [number] I was made redundant on [date] and I'm making a claim under my [policy name]. Please send me the claim form, the list of documents you need, your assessment timeframe, and confirm the date my waiting period ends. I'm attaching my redundancy letter and final payslip. Please also confirm whether I need to keep paying premiums while the claim is considered. Name, phone, policy number.
ACC, injury and income protection
- ACC covers accidental injuries whether or not you're working. If you're injured, lodge a claim with your doctor or physio (ACC45 form). ACC may pay weekly compensation (up to 80% of your pre-injury earnings) if you were an employee, self-employed or a shareholder-employee at the time of the accident and can't work because of the injury. It's usually payable from day 8 after the injury. If you've just lost your job, ask ACC how your situation is treated.
- ACC pays no weekly compensation for sickness or illness, only for covered injuries.
- Income protection insurance typically covers illness or injury, not redundancy. If you're sick or injured while out of work, check if it can be claimed; you may need to show you were working when you became disabled.
- Work and Income's Jobseeker Support – Health Condition and Disability is available if you can't work due to illness; it's separate from ACC.
If your insurer won't pay
- Raise a formal complaint with the insurer in writing and ask for the decision reasons.
- Escalate to the insurer's external dispute resolution scheme (they must belong to one).
- Free advice: MoneyTalks 0800 345 123 (text 4029), CAB (0800 367 222), Community Law centres.
Sources
- FinCap: MoneyTalks free financial helpline (opens in a new tab)
- ACC (opens in a new tab)
- Sorted: Insurance (opens in a new tab)
General information only. Confirm with the agency for your situation. Spotted something out of date? Email help@unemployed.nz.