life insurance: it is a financial product that people need when planning for the future and create a financial
protected environment. In New Zealand, many insurance companies are in operation holding
different kinds of life insurance policies with different premiums to charge and different
provisions of coverage. In this blog, we will be highlighting some of the industry leaders in New
Zealand, what many of these are offering, and why life insurance matters.
Why Life Insurance is Important
Life insurance serves several vital purposes:
Financial Protection for Loved Ones:
Life insurance payout a onetime payment in the case of your death and it can be used to pay for
bills children and family needs in the future.
Peace of Mind:
It is mentally liberating for you and your family to know that with you serving in the military
your family is financially well taken care of.
Coverage for Serious Illnesses:
Most of the life policies come with an endowment for critical illnesses which is vital especially
on instances when one is ill.
Investment Component:
Some policies even contain elements of an investment product – policy holder can accumulate
money value in the policy.
Major Life Insurance Companies in New Zealand
Here’s a brief rundown of some of the key life insurance companies in New Zealand along with
links to their site, premium rates and types of policies.
AIA New Zealand
Website: AIA New Zealand
Premiums:
Depending on the age, health, and required coverage that costs 30 NZD per month and above.
Coverage Options:
Life Cover: Lump sum payout on the occasion of death.
Total and Permanent Disability (TPD) Cover:
It gives financial assistance if you are totally incapable for working.
Critical Illness Cover:
Certain amount of money in the form of cash will be provided in case of serious illness.
Funeral Cover:
Burial services and casket expense.
AMP Life
Website: AMP New Zealand
Premiums:
The fees usually accumulate to as low as $20 per month and highs of $200 per month.
Coverage Options:
Term Life Insurance:
The defined period for which expense is incurred or an extent of responsibility assumed.
Income Protection Insurance:
A fraction amount in relation to your wages if you are unable to earn due to illness or disability
Trauma Insurance:
It provides medical funding for critical illnesses.
Child Cover: Extra coverage for children.
Fidelity Life
Website: Fidelity Life
Premiums:
At a base rate of NZD 25 per month depending on the kind of coverage needed.
Coverage Options:
Life Insurance:
It will offer you lump sum payout upon death.
TPD Cover:
The I.DTO will be paid to each person for total and permanent disability of their individual.
Critical Illness Cover:
Money related backing for ailment affecting one gravely.
Accidental Death Cover:
Supplementary payment for killed as a result of an accident.
Southern Cross
Website: Southern Cross
Premiums:
Premium starting from approximately NZD 30 varies depending on the plan of the business.
Coverage Options:
Life Insurance:
The basic plan with flexibility to add extras on the package
Health Insurance: It includes Medical expenses which are related to the additional policies with regard to life insurance.
Sovereign Insurance
Website: Sovereign:
Premiums:
Starting from NZD 20 per month and depending on the user’s specifics Coverage Options:
Life Cover:
They offer the standard life insurance benefit.
TPD Insurance:
For those that cannot work due to life-time diseases or disabilities.
Living Insurance:
Healthiness concerns accompanied by financial help
Accidental Death Benefit:
The payment in excess of the compensation intended for any incident.
How to Choose the Right Life Insurance
When selecting a life insurance policy, consider the following steps:
Assess Your Needs: Canvassing the likely financial commitments, the dependents and the future
goals to make the right projection of the level of insurance to take.
Compare Policies: Take time and investigate the available companies and their products so that
you can notice the right one for you.
Understand Terms and Conditions: As a rule, read through the small print to the policy,
especially exclusions and other additions that may be provided with the policy.
Seek Professional Advice: For advice that is suited for your specific financial needs it is
advisable that you seek the services of a financial planner.
Conclusion
New Zealanders need life insurance as a form of risk management in one’s lifetime. It offers
pecuniary security in the bad time of life, guaranteeing that your family receives necessary
support after the death of the breadwinner. This means that the more you know the choices that
are available from some of the major life insurers like AIA, AMP, Fidelity Life, Southern Cross
and Sovereign, the better positioned you would be about the facilities that would help you to
attain your financial objectives as well as help you achieve you desired state of mind.
If you have not started thinking about life insurance it is time to do so and go through the
complete option that are available on the market to ensure your family’s future.
