If you have dependants, want to protect your income and your family’s financial security, or think you’ll require additional financial support in case of terminal illness, then purchasing life insurance is imperative. Proceeds from life insurance can be used for paying off debts, covering living expenses, or funding future plans - like a child's education. This safeguard can relieve the burden of loss and provide comfort to loved ones during difficult times.
Life insurance can also give extra protection by offering add-on ‘benefits’ or policy features which cover certain conditions, such as critical (terminal) illness, and accidental death.
Life insurance is a promise to secure your loved ones' future on death. Here's why it matters:
NB: The following information is for general purposes only, and not intended as financial advice. Please contact a member of our Policywise team for more specific assistance.
One of the biggest questions is, "How much life insurance do I really need?" A number of factors influence this decision, and different methods can help calculate the answer. Let’s first have a look at how to calculate an appropriate amount of cover for you. Commonly, this is determined through the DIME formula, income multiple process, or expenses-based approach.
You should consider other factors in determining your level of cover, including:
If you would like some help to understand more about how to calculate the right amount of life insurance and get it all in place with a quality insurer, then book a 5-minute callback with Policywise. We can also offer advice if you’d like to review your insurance plan or compare other options for consideration. Our service is fast and free, and we work with all leading health insurers in New Zealand.
Life insurance is a cost-effective plan that offers cover for a specific term but does not accumulate cash value. Policyholders pay premiums throughout, and if they pass away during the term, their beneficiary receives a death benefit. It is an excellent choice for those who want to provide financial security for their loved ones during a specific time, such as when they have dependants or outstanding debts. Term life insurance has two sub-types offered in New Zealand:
To obtain a life insurance policy, you must apply with an experienced insurance broker that has good customer reviews like Policywise. The process will typically require you to disclose personal and family medical history, beneficiary information, and any pre-existing medical conditions. Medical exam and test results are often requested. Additionally, insurance providers may ask you about your general lifestyle, as this can impact your health and potential risk to the insurer. Finally, you will need to present proof of your identity.
Life insurance is critical for the financial wellbeing of your loved ones and for your peace of mind. The amount of life insurance cover you need depends on your circumstances, but there are ways to determine the right amount for you. Further, it is important to review and adjust your cover regularly as circumstances change over time.
The cost of life insurance depends on factors such as your age, health, lifestyle, and cover amount.
The main purpose of life insurance is as an investment in financial protection for your loved ones in the case of unexpected events, such as death.
The decision to purchase life insurance is entirely yours. However, it is always recommended to seek professional advice from an insurance specialist such as Policywise, a 100% free service which tells you which health, life, and disability insurance provider best fits your needs.
It can take anywhere between 2 weeks and 6 months, depending on how fast you can get all the required information to the insurer. If the information is complete and there are no issues, the policy may be activated relatively quickly. However, applications that require a more detailed evaluation may take longer, depending on the circumstances.
You or your beneficiary will need to contact your insurance broker or insurer direct and provide information on your policy. You may be required to fill out some forms and give information necessary for the evaluation of the claim. If you have taken out your insurance through Policywise, we can help you negotiate a positive outcome on your claim.
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 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.
Disclaimer: This article is for general information only. Nothing in this blog or on this website is intended as medical, dietary, or financial advice. Although Policywise aims to update our content regularly, you are advised to consult a financial adviser, health professional, or an appropriate specialist before acting on any information herein. They can factor in your personal circumstances or preferences and help guide your decision-making process.