Asking the Right Questions

According to Dun & Bradstreet, 45% of working New Zealanders could last only a month on their savings. I immediately thought that’s a great answer – now what’s the right question? One that connects this with an insurable risk, of course. So ask a potential client: “If you were disabled tomorrow, how long would your savings last?” Too often we hear budget-based objections to insurance – when in fact insurance and savings are both on the same side.

Even for people that do have significant savings, they are usually earmarked for something else – that savings goal can often be seen as a competitor to a budget for insurance – but it should be seen as an ally. “How much of your savings and investments would be left after a disability lasting six months?”
Quantifying the savings rate also provides valuable clues to the level of cover required – and it’s an easy shortcut to the outcome of a detailed budget. So, “How much do you save each month?” becomes a tool which tells you about how much cover they may need – and for most people we already know they save very little: So they need every scrap of insurance they can get. 

Credit restrictions are strangling budgets everywhere – but they also mean that whenever disaster strikes it cannot be ‘put on the house’. Knowing that we now ask a question which connects it to an insurable risk. “How much extra could you borrow if you were unable to work and needed cash to fill a gap in the family budget?” 

Whatever the dismal statistical answer, there is sure to be a good question behind it that underlines the need for comprehensive personal insurance.

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