Too much cover or not enough?

Life is a risky business but it's hard to know what insurance cover you need.

In New Zealand, there's no shortage of people to advise you on insurance though their recommendations can vary hugely.

While insurance advisers, who earn commission on policy sales, see Kiwis as chronically under-insured, many financial planners, who earn their commissions from investment products, resent premiums taking cash away from investment and savings.

Compared to other nationalities, there is little doubt Kiwis are under-insured, says Simon Swanson, managing director of insurance giant Sovereign.

The problem is largely a result of lack of income to pay the premiums on a swag of life insurance, income protection (IP), trauma cover and total and permanent disablement (TPD) policies as well as maintain one's lifestyle.

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