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A Situation We See More Often Than You’d Think

We often speak with people who tell us something like this:

“I’ve been meaning to look into life insurance for years. I just never got around to it.”

They’re usually healthy. Working. Managing a mortgage or rent. Maybe planning a family, or already raising one.

Nothing feels urgent — until something happens.

And the reality is, life insurance is one of those things that feels unnecessary right up until the moment it becomes essential.

What Life Insurance Actually Does (In Plain English)

At its core, life insurance is simple.

If you pass away, it pays a lump sum to your family or estate.

That money can be used to:

• Pay off or reduce a mortgage
• Cover everyday living costs
• Support children while they grow up
• Remove financial pressure during an already difficult time

It doesn’t replace you. It doesn’t fix the emotional loss.

But it buys time, stability, and options for the people you leave behind.

“But I’m Young and Healthy…”

This is one of the most common reasons people delay life insurance.

Ironically, it’s also when life insurance is:

• Cheapest
• Easiest to obtain
• Most flexible

Life insurance is based on risk. The lower the risk, the lower the cost.

Waiting until something changes — health, family situation, finances — often means:

• Higher premiums
• More exclusions
• Or difficulty getting cover at all

In other words, life insurance is usually easiest to arrange before you think you need it.

Do You Have Anyone Who Depends on You?

You don’t need to have children to need life insurance.

Some common situations where life insurance matters:

• You have a partner and shared financial commitments
• You have a mortgage or joint debts
• You plan to start a family
• Someone would struggle financially if your income disappeared

If the answer to “Would someone be financially impacted if I wasn’t here?” is yes, then life insurance deserves serious consideration.

Life Insurance vs Trauma Insurance (A Common Confusion)

Another question we hear a lot is:

“Isn’t trauma insurance more important than life insurance?”

They serve different purposes, and one doesn’t replace the other.

Life Insurance

• Pays out if you pass away
• Focuses on protecting others financially

Trauma Insurance

• Pays a lump sum if you’re diagnosed with a serious illness (like cancer, heart attack, or stroke)
• Focuses on helping you while you’re alive — medical costs, time off work, recovery

Many people in New Zealand choose to have both, structured together in a way that fits their budget and priorities.

The key point:

They solve different problems, and comparing them directly without context often leads to poor decisions.

Why “I’ll Sort It Out Later” Is Risky

Life doesn’t usually send a reminder saying:

“Now would be a good time to arrange life insurance.”

What changes is:

• Health
• Family situation
• Income stability

And those changes don’t always work in your favour.

Putting life insurance in place earlier gives you:

• Certainty
• Lock-in pricing
• Peace of mind that doesn’t depend on “perfect timing”

How Much Life Insurance Do You Actually Need?

There’s no one-size-fits-all number.

But a good starting point is asking:

• How long would my family need financial support?
• What debts would need to be cleared?
• What ongoing costs would still exist?

This is where proper advice matters — not guesswork, not online calculators alone.

Common Mistakes We See in New Zealand

Over the years, we’ve noticed a few patterns:

• Taking out too little cover just to “have something”
• Setting it up once and never reviewing it
• Choosing based on price alone, without understanding the policy
• Assuming work cover is enough (often it isn’t)

Life insurance works best when it’s designed intentionally, not rushed.

So… Do You Really Need Life Insurance?

For many New Zealanders, the honest answer is:

Not today — but eventually, yes.

And the smart move is usually before it becomes urgent.

Life insurance isn’t about expecting the worst. It’s about being prepared enough that the worst doesn’t become a financial disaster for the people you care about.