Most Life/Health Insurers in New Zealand are of good quality and the cost of insurance across these providers is broadly similar – on a like for like basis.
With Life and Health Insurances the amount you pay is determined by your type of cover and the amount insured. You need to be careful because some insurers will limit the illnesses they cover, or the rules about when they pay claims. This is the important stuff.
What would you need if?
| Event | What are you Covering? | Think About |
|---|---|---|
| You were unable to work due to short term illness? | 1. Income substitution | How long can you survive before income is needed? (We can use Revolving Credit buffers and mortgage holidays to push this out a bit.) |
| You suffer a major trauma (cancer, heart condition) | 1. Income substitution 2. Cover incremental costs 3. Pay off debts | How will you cover your spouse’s income if they need time of work? |
| You are unable to go back to work due to long-term illness | 1. Long term income | Can you enjoy life on a sickness benefit of $640 per month? |
| You suffer from commercial death (Unable to work again) | 1. Cover incremental costs 2. Pay off debts | Will an income benefit be sufficient or will you also need to pay off debt or cover higher costs? |
| You die or suffer from a terminal illness | 1. Income substitution 2. Pay off debts | Would we need to provide your spouse with an income stream after your death? |