Taking out family life insurance means you can secure your family's financial future with confidence. It’s a comprehensive solution that covers the lives of multiple members of a family under one plan. With a single policy, you can insure your entire family unit, providing the peace of mind of knowing they will be taken care of should their primary income earner pass away.
Life insurance is a promise to secure your loved ones' future on death. Here's why it matters:
To choose the best family life insurance, there are several factors to consider, including:
The right policy depends on your needs and circumstances, so compare policies and providers to find one that suits your budget and offers the protection you need.
There is one main type of family life insurance available in New Zealand, offering cover for a specific period and lower premiums (‘term life insurance’); and two sub-types:
It guarantees a consistent payout throughout the term without any increase or decrease in premiums.
This usually starts with lower premiums than level life insurance, with premiums increasing yearly (‘stepped’). There will be a point in the future where stepped premiums will cost more than level insurance premiums.
Book a time with a Policywise adviser to determine which type of life insurance structure is right for you. Deciding on the right policy wording for your family's needs and financial situation is of great importance and requires careful consideration and expert guidance.
Family life insurance is essential for anyone with loved ones who rely on their income. Here are some scenarios in which family life insurance can be beneficial:
Determining how much life insurance will cover your family's needs can be challenging, and factors such as income, debt, and expenses all play a role. It is a wise idea to consider your family's requirements and speak with a life insurance adviser.
Couples have two options to protect themselves in case of unexpected death: a joint life insurance policy that covers both partners or purchasing separate policies that complement each other's cover. To make the right choice, couples should consider factors like their budget, the type and amount of cover required, and any existing health conditions.
Solo parents can protect themselves with a well-designed life insurance policy in case of unexpected death and have the proceeds of the policy get paid out to their children or family estate, with significant assets earmarked to pass on to their children or other beneficiaries.
New Zealand parents with existing life insurance policies can provide limited cover for their children up to a certain value, depending on the wording of their policy. Parents may also want to consider purchasing add-on benefits for their children, such as terminal illness or trauma cover. These policies can provide financial protection for the child and may also help them obtain life insurance cover as an adult, regardless of their health or occupation.
Parents and grandparents in New Zealand may want to consider purchasing life insurance policies that provide cover for their children or grandchildren.
Family protection insurance safeguards your loved ones’ financial stability by providing a monthly income for a specific period if you pass away due to an accident or illness. It ensures that your family has the funds to cover their living expenses, bills, and other financial commitments, and maintain their standard of living even after you’re gone.
Certain features can be added or included in your cover to provide extra protection and benefits. New Zealanders can choose from several types, such as:
In New Zealand, certain types of family life insurance benefits can be helpful, including:
Careful consideration should be given before adding benefits to a policy as they come at an additional cost. Be sure to review the terms and conditions of each benefit. Our experienced insurance advisers can help you determine if these add-on benefits fit your family’s specific needs and if the added cost to your policy is justified by the potential payout.
Policywise is a 100% free service which tells you which health, life, and disability insurance provider best fits your needs. We offer fast, comprehensive, and easy-to-understand comparisons of all leading providers, and a simple summary clearly recommending which insurer is best for your situation.
Not all insurance policies are the same. Policywise can help you sort out the duds, avoid the lemons, understand the fine print and exclusions, and get the right insurance for you and your family.
We make the important decision of where to buy your insurance super easy. We’ll answer your questions, provide experienced advice, quotes, and comparisons, and manage all the back and forth throughout the application process. Taking out your cover through us means you'll have our lifetime support and claims advocacy, and we'll help you negotiate a positive outcome at claim time. We can also take care of lodging any claims on your behalf and back you up if the going gets tough.
Check out the reviews on our homepage for how other New Zealanders have found our service because now is the time to get your family life insurance sorted. Give your family or someone you love the most outstanding financial support possible. Book a 5-minute callback with Policywise today; our service is fast and free.
Download our FREE comparison guide to selected life insurance plans from New Zealand’s most trusted insurers.
Talk to a Policywise adviser for more information on these plans and other insurance products such as trauma insurance, income protection, and total permanent disability cover.