How your life stage influences your insurance

Where you are in your life stage can give you a hint as to what types of insurance may be most suitable for your situation.

Young couple with no children?
Although you may not have responsibilities to children, you could have a responsibility to your partner. You may wish to leave your partner a lump sum to enable them to live mortgage free.

You should also consider what would happen to you if you were unable to work due to illness. In this instance, Trauma Cover or Income Protection could provide you with regular money to help cover expenses and pay the rent or mortgage.

Health Cover is also important at this life stage and it can be a good idea put this cover in place before you develop any serious medical conditions or injuries which may be excluded from a future policy.

A couple with children under 18 years old?
At this stage of life, money is typically a factor as you have higher outgoings - this leads to premium affordability becoming important.

It can be a good idea to have enough Life Cover to repay any outstanding debt and allow your spouse to continue meeting expenses until your children are grown. Alternatively, if you have no mortgage it is important to consider how the remaining partner could continue meeting rental payments if you were not around.

Health Cover is still important at this life stage.

No dependents but you still have debt?
As your children have left home, you may not require a large lump sum in the form of Life Cover. However, you still need to consider how your partner would keep meeting mortgage obligations should one of you pass away - there is also the retirement nest egg to consider.

At this life stage, the chance of suffering from a serious illness is still present, if not increased. Therefore, protecting your income and having Trauma Cover in place is still important .

You should also not consider cancelling your Health Cover as the chances of you requiring this type of cover increases as you age.

Many at this life stage are living debt free and receiving NZ Super and income from assets. Given this, there is typically little need for Life Cover.

The most important type of cover at this stage is Health Cover. Unfortunately, by this stage there are higher premiums as the chances of you making a claim are increased. However, the speed at which you receive treatment and the availability of options can have a huge impact on your quality of life. Therefore, it is a good idea to keep your Health Cover in place as long as possible.

To discuss your cover options with an adviser contact us on 0800 500 510

Image courtesy of photostock/freedigitalphotos.net


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