Life Insurance NZ
Life insurance NZ is a type of insurance, that is designed to payout a lump sum in the event of the person insured dying. This sum is tax free.
Who can have it?
You can apply for life insurance NZ if you are aged between 16 and 74 years old, and are a New Zealand citizen or a permanent resident.
Whats covered -
Generally death due to most causes, such as having an accident, or due to ill health.
Some policies will payout early in the event of the insured person being diagnosed as terminally ill by a doctor. There are conditions that apply to this situation though.
What’s not covered -
Suicide is generally excluded if it occurs within 13 months of the policy commencement date. It’s recommended to read the policy document to determine the specifics of a proposed insurance before sighing up for it. To ensure your specific requirements are met.
Who needs life insurance NZ.
People who have others that depend on them financially, such as partners and children. You need to consider what effect it would have on your loved ones if you or your partner passed away.
You can’t do much about the emotional grief they may feel, but you can ease their difficulties, by leaving a lump sum to help pay for the funeral, and travel costs of mourners. You can also leave enough to pay off any debts, such a mortgage or hire purchase arrangements. It’s also worth considering having enough cover to leave a lump sum, over these costs to allow your loved ones to cover their living costs well into their futures.
If you or your partner die will any of the following reasons apply:
1. You have dependent children.
Children require significant amounts of money, for food, accommodation, clothes, and education, until they are at least 18, when they are likely to be able to look after themselves.
2. You have other dependent relatives.
Some families have their parents, or grandparents living with them, who may depend on them financially.
3. Mortgage on the home.
Life insurance in New Zealand can provide enough money to pay of the home mortgage.
4. Other debt.
Such as hire purchase on a vehicle, or credit card debts.
5. Funeral costs.
Paying for a funeral that typically costs from $4000 to 15,000, depending on how you want to arrange it. This places an additional stress on the remaining loved ones.
Factors to consider when choosing life insurance in NZ
Choosing the right type of life insurance NZ requires getting the following factors right:
1. The amount of money to be paid out. -
How much do you want or need to be paid out to cover -
a) Your debts such as mortgage, loans and hire purchases.
b) The funeral costs.
c) Future living costs. You will probably want to leave enough for your defendants (partner, children, and relatives) to live comfortably.
d) Education costs. – You may want to leave enough for you children’s education.
e) Retirement savings. – Depending on the age of your partner you may want to leave some retirement savings for them.
d) Premium costs. – You don’t want so much that your premiums are causing financial hardship for you to pay while you’re alive.
2. The type of policy. -
a) Do you want your premiums to be level or stepped.
Level premiums are when the price you pay remains the same for the whole term of your policy.
Stepped premiums are when the price you pay is set for a period and then may go up after the specified period.
b) Do you want your policy to only payout on death, or to include cover for a serous health problem.
3. Insurance Company.
a) Whats their financial position, as indicates by their credit rating?
b) Compare premiums and policy cover from different companies.
c) How flexible are their policies if you want to change something later?
It’s a good idea to discuss your needs with your partner and have some sort of budget on paper to estimate what amounts of money are involved.
Then if you think you need advice discuss your requirements with an insurance broker, so you get the best life insurance NZ available.
Go to Life Insurance New Zealand from Life Insurance NZ