Buying Life Insurance in NZ
Buying life insurance in NZ isn’t that difficult, though if one has health issues or is wise in age, these can present additional challenges. The time when most people buy life insurance in NZ, or at least should consider taking out a policy, is when they are young and starting out as a family. A married couple with young children is especially at a risk of running into extreme financial difficulties should the breadwinner in the family suddenly die.
Choices For Young Couples – There are pros and cons associated with any of the major types of insurance policies. It is not always easy to decide which type of policy might be most suitable. Generally, the lower the premium that is to be paid, the less amount of coverage provided. Some young couples choose a variable term life insurance policy, in which premium payments are initially low, but increase over time. This choice is made under the assumption that over time the earnings of the family breadwinner will grow and there will be no problems in making the premium payments as they begin to increase. A professional businessman or someone in the right type of employment can typically count on his or her earnings increasing over time.
Some young couples opt for accidental death insurance. Benefits can be quite high while the cost remains quite affordable. The reason for this is younger people are unlikely to die from health issues or natural causes, and while more young people may die from accidental causes than do older people, from a statistical point of view, chances of such accidental death are viewed by the insurance companies as being slight and representing little risk to the company.
Whole Life Is Best When Affordable – A whole life or straight life policy is ideal for most, if one can afford the premiums. Many policies of this type have a cash value advantage, a form of investment. In later years, the policy can be cashed in, often for a considerable amount, or the policy can be canceled and the money withdrawn in the event of an emergency. The advantage to having a whole life policy is that once the policy is in effect, it cannot be canceled and – even if the health of the policy holder should rapidly decline – the payments on the premium never change.
When purchasing life insurance in NZ, or almost anywhere else for that matter, serious thought should be given to buying a policy that will be in effect for the rest of one’s life. Ideally, purchasing one that cannot be canceled for any reason other than non-payment on the premium is a good idea. Once a policy is canceled, it can sometimes be quite difficult to purchase a new policy if one is in poor health, and the premium will be higher based on the age of the applicant.
We can provide advice and guidance as to which type of insurance policy would best suit your needs. Feel free to contact us for free quotes. There’s no obligation on your part to do so.