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Do I Need Life Insurance?

In all likelihood, yes. The way in which New Zealand society works today, both socially and financially, means that adult Kiwis invariably have a need for life insurance. Even people who are relatively well-off tend to have a requirement for life insurance.

When you think about life insurance, think in terms of it stepping in to meet the important obligations which you expected your future income to meet, if you are no longer there to earn the income. The expenses which you currently have, and the loan repayments which you are now making, give you some idea of the needs which life insurance can meet if you are not there to meet them yourself.

If you wonder whether you need life insurance, ask yourself the following questions:

Does anyone depend on me financially, particularly on my income?
Do I have any borrowings, such as a mortgage, a personal loan or credit card debt?
Do I own a business, particularly one that depends on me for its revenues?
If none of the above situations apply to me now, are any likely to apply to me in the future?
Am I free of major health issues, such that I could get preferred rates for life cover now?
Do I want funds set aside specifically and solely for final expenses, including funeral costs?

Other than very young adults and the elderly, people will often answer ‘yes’ to the first and second questions, and many will have the same answer to one or more of the questions which follow. If you answered ‘yes’ to any of the above questions, now is the time to apply for life insurance.

To help you determine how much cover you should apply for, use our life insurance calculator.

Important Information

  • This website does not provide personalised advice, and it takes no account of your personal insurance needs or circumstances. In particular, the information in this website is not personalised financial advice for the purposes of the Financial Advisers Act 2008 and should not be relied upon in making a decision about insurance. If you are unable to (or do not wish to) determine your cover requirements on your own, then read our section on obtaining advice.