Before I stumbled into the insurance industry, I had little to no understanding of insurance that could cover me as a person. Like most people, I had car insurance from the time I bought my first car, and contents insurance while I was at university, just in case something was lost or stolen. I knew my parents had some kind of medical cover for me, but I had no idea what it actually included. Life insurance? That was something people fought over in dramatic TV shows, not something I saw as relevant to my own life.

Everything shifted when I started working at one of New Zealand’s major insurers. I was speaking with hundreds of customers every week, hearing firsthand how insurance helped people during some of their hardest moments. I started the job during COVID, when job losses and uncertainty were widespread. Listening to those stories really got me thinking: what would I do if I suddenly couldn’t work?

At the time, I didn’t have any major debts or dependents, so I figured I’d just rely on savings or government support if something went wrong. But when I seriously considered the idea of losing my ability to earn an income – whether from illness or injury – it was a confronting thought.

The worst-case scenario is something happening that would prevent me from ever working again. That could mean losing out on 30 or more years of income. Even something less severe, like being out of work for six months to a year, would still have a big impact. If it wasn’t caused by an accident, ACC likely wouldn’t help, and I’d have to dip into all my savings just to get by. Sure, I might eventually get back to work, but I’d be starting over. That would set back everything I’d been working towards.

All my future plans – the property I hope to purchase, the children I want to support, the travel I want to do – are directly connected to my ability to make a good living.

It’s interesting how quickly we insure our cars, homes and contents, yet often overlook protecting our own earning ability and health. Those other forms of insurance matter, of course, but if you crash your car, you can usually replace it. If something serious happens to you, there’s no easy replacement.

I often hear people say, “I’ll look into it once I have a mortgage.” That makes sense in theory, but what happens if you’ve saved a decent deposit and then something unexpected comes up? Suddenly you’re using that money to cover basic living expenses. Rebuilding those savings takes time, and in that time you could miss out on growth in the market or have to delay long-term plans.

Personal insurance like life, medical, income protection, or critical illness cover doesn’t have to cost a fortune. When it’s tailored to your situation, it can be relatively affordable, especially when you consider what it’s actually protecting – your income, your goals, your financial security.

I’m not here to push anything. I just think it’s worth stopping to ask yourself these questions: What would happen if I couldn’t work for a while? How long could I manage financially? What would I have to give up or delay?

These are tough questions, but important ones. And they are definitely worth thinking about.