Every stage of modern life brings different wants and needs along with it. A 60 year old looks to their future in terms of retirement. A younger Kiwi might be focusing more on developing their career and starting a family.
Your insurance needs are no different––they change as you get older. That’s why we’ve put together this short guide to help you figure out the new risks that come with each life milestone. Pick the stage that best suits you, and we’ll point you towards the best personal insurance cover you need to consider.
Let’s get started!
The independent under-30s have an easier time when taking out insurance. Death or serious illness is unlikely and your payments reflect that. Insurance for 20 year olds, for example, can end up costing the same as a decent pie from the dairy each week.
Insurance for 20 year olds ... can end up costing the same as a decent pie from the dairy each week.
Don’t be fooled by your lack of risk though. Getting insurance early has benefits that outweigh the coverage. If you take out medical insurance young, you lock in your coverage before you develop serious illnesses that would otherwise result in sticky exclusions.
This is about developing ‘future insurability’—and it’s a valuable thing to have for your future needs.
Download: Do you have the right insurance for where you are in life? [infographic]
You’ve found the special person in your life and you’ve decided to move in together. This is a big step not just for you, but for your partner as well—and, perhaps less excitingly, also for your insurance.
When you were single, you were only responsible for yourself and your own needs. Now that you have a shared lease or mortgage, you need to consider your partner as well. If you lost your income or your life, your partner would have to manage the mortgage or rental payments alone.
For many households in New Zealand, that is simply not a sustainable situation.
Thankfully, the costs of your insurance probably haven’t gone up too much either. You’re still young, and your risk is low. You may want to insure yourself in case of death so your partner isn’t left with a huge mortgage to pay by themselves. A similar argument is made for income and trauma insurance.
The major change at this life stage is the entrance of children into your life. Rather than just being responsible for your and your partner’s happiness and health, you’re now in charge of your kids’ as well. That’s an expensive endeavour. It costs between $150 and $300 a week to keep them fed, watered, clothed, entertained and educated, depending on their age and your income level.
Rather than just being responsible for your and your partner’s happiness and health, you’re now in charge of your kids’ as well.
Put that cost on top of a mortgage or rental costs. Suddenly, reducing costs elsewhere becomes even more important. That includes your insurance.
There is good news, though. Chances are, you’re getting a little older now. You and your partner are reaching your full income potential. You’ll be earning more, which will reduce the impact of your insurance costs on your budget. You can ensure your partner and your children will flourish should anything happen to you.
After a long life of hard work, you’re ready to retire. You’ll have cleared most, if not all, of your debt. You’ll likely have reduced your life insurance payments too. It’s now less important to have a big lump sum in the case of your death.
Some cut the life insurance out, while others choose to keep it for longer. This could be to cover funeral costs or to reduce the impact of dropping to a single NZ Super payment.
Your health insurance will be getting expensive. Your chance of illness or injury rises as you get older. GP visits alone increase rapidly once you pass 65, for example. This is also where premium level policies pay off, as they do not increase in cost as you get older.
Want to see more about the kind of insurance you need at each life stage? Download our free infographic!