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Buying Life Insurance NZ – The Biggest Mistakes

The biggest mistake most people make when buying life insurance  in New Zealand is to purchase a policy in a hurry, without really giving the matter much thought. One certainly will realize a certain peace of mind in knowing his or her family or loved ones will be provided for under the new policy. But will the benefits be sufficient? Can the policy ever be canceled? Will it always be possible to make payments on the premium? These are questions that need to be answered before signing dotted line for a life insurance NZ policy. Yet, many of us may be guilty of putting more thought into an outfit than on something as detailed as an insurance policy.

How Much Coverage? – One of the calculations that needs to be made in deciding how much coverage is needed is to determine how much capital needs to be invested to replace the policyholder’s monthly paycheck, assuming that paycheck will grow over the years, at least enough to keep up with inflation. One of the biggest mistakes is that of choosing benefits that will only cover the surviving spouse or family for a year or two, and not the 5 or 10 years usually recommended. When the breadwinner dies, the remaining members of the family should not immediately feel the clock is ticking; that the benefits will no longer be there.

Comparing Costs – Another common mistake people make is in not bothering to compare costs of the premiums different companies will charge. One company may give you the best deal for a straight life policy but may charge much more than its competitors for term insurance. Most of us seem reluctant to shop around and make cost comparisons. It’s important to do that when purchasing life insurance, as the cost of a premium for a given amount of coverage can vary widely from company to company. Getting multiple quotes online is one of the simplest ways to get these comparisons, and it’s so easy there isn’t a reason not to.

Getting A Second Opinion – Comparing multiple insurance quotes is not always enough. Yet another common mistake we make is listening to the advice of a single company or agent only and not getting a second, or even a third or fourth opinion. It’s not just the amount of the premium that’s important. The type of policy is important as well, often crucial. Take the time to consider the various options open to you. There are usually more options than you realize, and with a little work you can get a very good policy that has a premium you can afford.

Put simply, if it means getting the right policy at the right price, you don’t need to be in all that much of a hurry to purchase life insurance that gives your family the protection it deserves. You might die tomorrow, but you probably won’t. Just don’t procrastinate.

We can help you in making the choice that is integral for you. We provide free quotes and give you the information and advice you need without feeling you are under any pressure. Click on our “Get a Quote” button to get started.