Getting this right makes a real difference...
Most people set up insurance with good intentions.
To protect their people.
To create a safety net.
To have something in place just in case.
What often gets missed is the detail underneath the policy. The part that doesn’t feel urgent at the time, but can make a huge difference later. That’s policy ownership, beneficiaries and wills.
When your insurance is put in place, someone has to own the policy. That owner is the person or entity who controls it. They’re the ones who can make changes, ask questions and make claims. If there’s more than one owner, everyone needs to agree before anything can be changed.
Ownership can sit with you personally, jointly with someone else, or with a trust or business. And this is where things can quietly get complicated. Because ownership can override intention.
We see this most often with life insurance. For example, if a policy is jointly owned with a spouse, that person may receive the payout if you pass away, even if your relationship has changed since the policy was first set up. Insurance doesn’t automatically adjust itself as life evolves. Add in trusts or business ownership, and there can also be legal and tax considerations that are worth getting advice on early.
Some insurers allow you to nominate beneficiaries, although this is becoming less common. Where it is an option, it can help clarify who you’d like the money to go to. But it still needs to line up with how the policy is owned and what the rest of your estate plan looks like. One piece on its own isn’t enough.
This is where having a will becomes so important.
A will helps make sure your wishes are legally documented if you pass away unexpectedly. Your insurance can be directed through your estate via your will, but it’s important to understand that policy ownership and any beneficiary settings may still take priority.
Everything needs to work together to do what you intend it to do.
A power of attorney is a completely separate document that allows someone to act on your behalf if you’re unable to make decisions for yourself. From an insurance perspective, this can be incrediblyyyyyy helpful if changes or claims need to be made while you’re dealing with illness or injury.
Around half of New Zealanders don’t currently have a will in place. The reasons we hear most often are uncertainty around guardianship for children, concerns about cost, lack of time, paperwork, or simply not knowing where to start. Which is honestly all completely understandable. Unfortunately, at the same time, not having a will can create stress and complications for the people you care about most.
If putting a will in place feels like something you keep meaning to get around to, we can help make that first step easier.
Your R&P adviser can refer you to FootPrint, an online option designed to reduce some of the common barriers. We don’t receive any financial benefit from this and don’t recommend it over independent legal advice. It’s simply one option available.
As an R&P client, you receive a discount (score). A simple, one-off will is usually $100, reduced to $85. Pricing varies depending on how complex your situation is. If more support is needed, FootPrint can also refer you to Perpetual Guardian.
If your insurance is set up with Chubb Life, you may also have access to Chubb Client Benefits. This can include professional legal support, alongside wellbeing and mental health services, with some costs covered.
At the end of the day, insurance is meant to make life easier when things don’t go to plan. But that only happens when the foundations are set up properly. Policy ownership, beneficiaries and wills aren’t about ticking boxes. They’re about clarity, confidence and knowing the right people will be looked after, exactly as you intended.
If you want to talk this through, reach out to your adviser or email us at kiaora@randpinsurance.co.nz. We’re always happy to help you make sense of it.
All information above is general in nature and should not be considered legal, tax or financial advice. We always recommend seeking advice from qualified professionals for your individual situation.
