A joint life insurance policy means that you and your partner can share the financial responsibility and reap the benefits together. Besides potentially lower premiums, joint life insurance offers a streamlined process, shared cover, and the flexibility to adapt to your unique life stages as required. But that's only scratching the surface. Couples should know and consider the intricacies of joint life insurance in New Zealand, including the benefits, different policy types, and how to choose the right insurance company.
Learn more about different types of insurance from a licenced financial adviser and see what's best for your circumstances.
Health | Life | Trauma | Total and Permanent Disability | Income Protection
What is life insurance?
Life insurance is a type of insurance cover that provides a lump sum payout on the death of the life insured. It is paid to the beneficiaries listed under the policy and provides a safety net that wraps around your loved ones when life takes an unexpected turn.
Here’s how life insurance works: You take out a life insurance policy through an insurance company and pay a cost, called a premium, on a regular basis. In return, if you pass away, the insurance company will pay the beneficiaries on the policy the full sum, providing them with a financial cushion. This invaluable protection ensures that, in times of need, your loved ones’ financial future remains secure.
Why choose life insurance for couples?
Life insurance for couples is a tailored solution, designed to cater to both partners’ particular requirements. Let's unravel the advantages that make this option an attractive one for many New Zealanders.
- Lower premiums and simpler processes. Taking out a joint life insurance policy may lower costs, creating less financial strain and more simplicity. How? By condensing the paperwork and process into one application form and a single set of documents.
- Shared cover. This ensures that both you and your partner are covered under one policy, so it's easier to administer. Imagine the peace of mind knowing that if the unforeseen occurs, your partner will have the financial support to manage expenses like funeral costs, mortgage payments, debts, and daily living costs.
- Flexible options. Joint life insurance for couples in New Zealand offers flexible options to suit every couple. The choices might include cover levels, payment methods, optional add-ons, beneficiaries, and the ability to tweak the policy as life evolves and changes. Perhaps you need more cover after purchasing a home, or maybe a new addition to the family changes your perspective.
Exploring types of life insurance for couples
Life insurance is a vital component in securing financial stability, particularly for couples looking to protect each other's future. There are two primary types to consider: joint life policies and dual life policies.
Making the right choice between these two options requires careful consideration of factors like cost, what cover is required, and long-term planning. Professional advice may also be helpful in making an informed decision that aligns with both partners' circumstances and goals. If you have any questions or would like some help finding the right policy, book a callback with a Policywise adviser; it's fast and free.
How to choose the right joint life insurance policy
Finding the perfect plan is like fitting together the pieces of a puzzle. Here's how you can tailor a joint life insurance policy that fits just right:
1. Cover amount: Think of your future together
What does your future look like? Maybe a cosy house, kids heading to university, or adventures around the world in retirement. Whatever your dreams, they need protecting. Consider your mortgage, education expenses for children, and other ongoing costs to calculate the right amount of life insurance cover. It's like packing an umbrella; better to have it and not need it, than the other way around.
2. Policy term: Aligning with life's timeline
Life's a journey, and your insurance should be your companion every step of the way. Deciding the term of your policy means looking down the road to where you're headed. Whether it's 10, 20, or 30 years, or a policy that is guaranteed to cover you until death, the right duration will keep you covered.
3. Optional add-ons: Customise your protection
Optional add-ons are the extra cushions that make your policy even more effective. From critical illness, trauma cover, total and permanent disability, and health insurance, optional add-ons can be tailored to your life's challenges and opportunities.
4. Insurance provider and reputation: The trust factor
Researching providers in New Zealand and comparing their offerings is a vital process. Policywise is a 100% free service which tells you which health, life, and disability insurance provider best fits your needs. We plan and choose the best structure for you, saving you the need to perform hours of research yourself.
Benefits of life insurance for different couples
Life insurance for married couples
Married couples often meld their financial lives, making life insurance an essential part of safeguarding their shared future. Their policy should reflect common goals, such as homeownership, raising children, or caring for ageing parents. Consideration must be given to existing mortgages, future education expenses for children, or other long-term financial commitments.
Life insurance for unmarried couples
Life insurance for unmarried couples, whether cohabiting or maintaining separate residences, offers a layer of financial protection and stability. Shared responsibilities, like jointly-owned properties or investments, can be protected. Furthermore, seeking guidance in navigating potential legal complexities for unmarried couples can be helpful. An insurance advisor (such as Policywise) can assist in crafting a policy that recognises the couple's mutual financial obligations and commitments.
Life insurance for young couples
Young couples, particularly those at the start of their career or family planning journey, face a unique set of considerations, such as future family expansion, job transitions, and potential relocations. Opting for life insurance at a younger age often leads to more favourable premium rates. This allows couples to lock in a cost-effective policy that can adapt and grow with them. From starting a family to buying a first home, life insurance can be a cornerstone of financial planning for young couples.
Insurance for couples with kids and without kids
Couples with children often seek life insurance to guarantee their children's future, particularly concerning educational expenses and overall support. Policies with optional add-ons or trust provisions can be structured to provide for these specific needs. Conversely, couples without children may focus on securing their mutual financial future, planning for eventual retirement, or protecting shared investments and assets.
Adding on additional covers: A full cover plan
Life insurance functions as a key component in your overall financial strategy, working alongside other forms of insurance, such as health, income protection, trauma insurance, and total and permanent disability, to establish financial protection for diverse life situations.
Health insurance
Wait times under the New Zealand public health system could be anywhere between 4 months and several years. Imagine being struck with an illness and not being able to get the treatment you need promptly. Health insurance allows you to skip the wait times and get treated privately within 30 days on average, giving you and your family peace of mind.
Income protection
What if you were sick or disabled and couldn't work tomorrow? How long would your job last and where will your money come from? Income protection swings into action, covering you for up to 75% of your income, ensuring that the money keeps flowing, rain or shine.
Trauma and disability insurance
Like an airbag for life's hardest crashes, these insurances provide support when serious injuries or disabilities change the tune. Trauma insurance provides a lump sum payment if you are diagnosed with a specific covered illness, or undergo certain medical procedures. Disability insurance offers income replacement if you are unable to work due to long-term illness or injury. Both forms of insurance aim to ease financial stress during challenging times, allowing you to focus on recovery.
Mortgage and rent protection
This insurance serves as a safeguard for one of your most significant financial assets: your home. It’s designed to cover your mortgage or rent payments in the event of unforeseen circumstances, such as job loss, illness, or disability. By ensuring that these payments continue, mortgage and rent protection insurance allows homeowners to retain ownership of their property or cover their rent even if they are unable to work.
How Policywise can help
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 joint 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.