Spring 2010

‘She’ll be right’ often isn’t

Did you know that over a lifetime, fathers have seven fewer Father’s Days than mothers have Mother’s Days? This is because men generally start parenting later in life and because women have a longer life span.

Recent research confirms a marked gap in life expectancy between men and women. Although 61% of males believe they will live above the current average life expectancy of 78 years for men, compared to only 53% of females who expect to live above the average life expectancy of 82 years for women, the facts are that on average, Kiwi men die four years younger than women.

Why do women live longer? Because men make fewer visits to the doctor than women – with most waiting days, or weeks, before seeking medical treatment – even when they are feeling unwell.

Men in general lack awareness of the importance of health screening to help detect preventable diseases and deaths from conditions such as diabetes, cancer and heart disease.

Father’s Day may have been and gone, but at Eric James & Associates, we say that any time of the year is a good time for a check-up. And if it sounds daunting, we hope the article in this newsletter will stir you into action. You’re worth it!

Insurance payout a lifesaver

A skiing accident seven years ago turned Matthew’s world upside-down, leaving him with a head injury that meant he could no longer work in his successful law practice. But thanks to the insurance risk programme he already had in place, financial difficulty was one trauma that he and his family did not have to face as they started to put their lives back together.

‘Our insurance risk programme literally saved our lives – we would have been bankrupt without it,’ Matthew says. ‘We would have lost our home and my wife Christine would have had to go back to work while also looking after me.

Instead, the couple was able to focus on rebuilding their lives without the worry of how the family was going to make ends meet or how the practice was going to cope without Matthew being there.

Matthew’s income replacement insurance and business expense cover meant the cashflow for the practice was largely unaffected. His partners no longer needed to provide an income for him and his share of the regular running costs for the business were covered.

Eventually, the partnership cover he had put in place just eight weeks before his accident was used to pay off existing business debts, purchase his share of the business, and provide funds to both Matthew and his partners. A permanent disability policy also provided funds to clear Matthew’s personal debts and general ongoing passive income.

Matthew credits his insurance advisor with providing expert risk management advice on how best to cover his business and personal risk needs. He recommends that ‘everyone’ in business has such a programme in case of illness or injury.

‘You may think that this will never happen to you but why take the chance when you can do something to protect yourself, your family and your business from the financial impact it could cause if it did,’ he says.

Income Protection is designed to replace a proportion of your income if you were to become unable to work due to an illness or injury. Your weekly benefit is calculated based on your income from personal exertion, to a maximum of 75% for Indemnity cover and 55% for Agreed Value cover. You will need to supply proof of your current income when applying for Income Protection. If you are a business owner this may include a set of financial accounts for the business to determine the level of your insurable income.

Need a mortgage? Talk to us!

The mortgage market appears to be returning to ‘business as usual’ with two of the leading trading banks now suggesting they’re looking for market share.

What does that mean for the house purchaser in today’s market?

Good news, in that all of the trading banks are lending to at least 90% of the value of a property, a number are now lending to 95%, and it is still possible to borrow 100% in certain circumstances.

So why use Eric James & Associates to arrange your mortgage?

• We now have access to a non bank lender, with interest rates currently 0.20% to 0.25% lower than bank interest rates.  They will also credit $500 towards your legal costs if you use their in-house conveyancing service, as well as provide a free Will.

• We have access to discounted interest rates you won’t see advertised in the media.

• Among our range of some 30 lenders, two banks are now offering up to $1000 towards professional costs, and up to $500 towards structural surveys or building reports.

• We offer a free service for residential lending.*

• Your place or ours – our mobile lending service will find you.

• Commercial loans, development loans, investment property loans, vehicle or plant & equipment loans – we’re ideally placed to give you a mortgage structure that best suits your commitments, aspirations and lifestyle.

Whether you’re a home owner, property investor, business owner or property developer, talk to us first. Call Eric James & Associates on 0800 374 252 for a no obligation chat.

* Some commercial or development loans may incur a fee.

FAQ

Let’s take a moment to tackle a question we are often asked… in case you’ve ever wondered…

I’m no longer able to afford my premium. What options do I have?

In the first instance we recommend that you contact us, as we can work out the most appropriate cover to match your budget. In the meantime here are some tips that might be helpful.
• Smokers pay a high premium, so if you’ve been a non-smoker for 12 months or more you can ask to lower your premiums.
• If your health has improved since you took out your policy, ask for a review of any loadings or exclusions that apply to your policy. We may be able to reduce your premiums.
• Because people’s circumstances change so frequently, we recommend a regular review of your policy. Talk to us about what options are available to you and see if you can find a way to alter your policy to suit your circumstances.

Congratulations to…

Our popular information stands at shopping malls, trade shows and exhibitions continues to reward new clients with a chance to win in one of our great prize draws.

EJA Winner $1000 ChristchurchWinners Auckland Vosloo1June 2010Congratulations to our recent winners in Christchurch and Auckland. Dianne Mason (picture left) of Parklands receives a cheque for $1000 from Eric James & Associates advisor David Hume.  Colin and Belinda Vosloo (picture right) of Pakuranga also received a cheque for $1000 from our Auckland sales manager Rick Willis.