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Finding Affordable Life Insurance in New Zealand

4 min read

By Katie Ormsby

Life insurance is a valuable financial product that provides financial support to your loved ones in the event of your death. It can provide financial resources to cover expenses like funeral costs, outstanding debts, and daily living expenses. Investing in an affordable life insurance policy can be a smart decision because it can offer financial protection and peace of mind for your family during a difficult time. Shopping around is a great way to explore your options and compare policies to find the right fit for your needs. Start a search today to find affordable life insurance policies.

Life Insurance Basics

Life insurance is a contract between an individual and an insurance company where the insurer agrees to pay a predetermined sum of money to the policyholder’s beneficiaries upon their death. Life insurance can help:

  • Replace lost income
  • Cover funeral expenses
  • Pay off debts like mortgages and personal loans
  • Provide for education expenses
  • Ensure financial stability for the policyholder’s family

Benefits of Getting Life Insurance

Having a life insurance policy can offer several benefits to both the policyholder and their loved ones. For example, here are some of the benefits:

  • Financial security: Life insurance can provide financial support to your family, ensuring they can maintain their standard of living after your death.
  • Debt protection: The payout from a life insurance policy can help your family pay off any outstanding debts, such as a mortgage, personal loans, or credit card balances.
  • Peace of mind: Knowing your family is financially protected can give you peace of mind and help you focus on living your life to the fullest.
  • Flexibility: Life insurance policies can be tailored to fit your specific needs with options to adjust coverage levels and premium payments over time.
  • Tax advantages: In New Zealand, life insurance payouts are generally tax-free, meaning your beneficiaries will receive the full benefit amount.

Term Life vs. Whole Life Insurance

As you research life insurance, you may come across “term life” and “whole life” and wonder about their differences. These two types of life insurance policies serve different purposes and cater to varying financial goals.

Term life insurance provides coverage for a specific period, usually between 10 and 30 years. If the policyholder passes away within the term, their beneficiaries receive the death benefit. Whole life insurance, on the other hand, provides coverage for the policyholder’s entire life. It also has a savings component.

It’s important to note, however, that whole life insurance is no longer sold in New Zealand. As a result, you’ll be focusing on term life insurance when shopping for a policy. Term life insurance, fortunately, is a great option that provides financial peace of mind at low prices.

Affordable Life Insurance Providers in New Zealand

Here are a few affordable life insurance providers in New Zealand alongside a few estimated rates to consider when shopping around for a policy:

  • Asteron Life: A well-known insurance provider in New Zealand, Asteron Life offers a range of life insurance products, including term life, mortgage protection, and funeral cover. Depending on your age and overall health, you may be able to qualify for a rate as low as $26.25 a month.
  • Partners Life: Partners Life is a New Zealand-based insurer that specializes in providing affordable, easy-to-understand life insurance policies. They’ve won countless awards and pay over 90% of all of their claims. Depending on your age and overall health, you may be able to qualify for a rate as low as $30.61 a month.
  • AIA New Zealand: As one of New Zealand’s leading life insurance providers, AIA New Zealand (formerly Sovereign) offers a variety of life insurance products, including term life, income protection, and funeral cover. Depending on your age and overall health, you may be able to qualify for a rate as low as $27.51 a month.
  • Fidelity Life: Established in 1973, Fidelity Life is a New Zealand-owned life insurer offering term life insurance, income protection, and funeral cover. Depending on your age and overall health, you may be able to qualify for a rate as low as $25.78 a month.

How to Choose the Right Policy for You

Selecting the right life insurance policy involves evaluating your unique needs and financial goals. Consider factors like your current and future financial obligations, your family’s lifestyle, and your long-term plans.

Compare different term life insurance policies and providers, focusing on coverage amounts and premium rates. By taking the time to research and assess your specific requirements, you can choose a policy that offers the best protection for you and your loved ones.

The Takeaway

Life insurance is an essential financial product that offers numerous benefits to policyholders and their loved ones. By shopping around online, you can find an affordable policy that meets your specific needs and provides peace of mind for you and your family. Take the time to research and compare the options to ensure you find the best policy for your unique situation.

Remember, investing in life insurance can be a smart decision that can secure your family’s financial future and allow you to enjoy life with the confidence that your loved ones are protected. The right policy can give you and your family the financial security you all deserve.

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Writer, General Health

Katie is a writer based in the Pacific Northwest. She has a degree in journalism and political science from the University of Washington. In her free time, Katie loves spending time with family, reading, and going to the movies and theater. She also enjoys getting out in the fresh air to explore parks.

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