Comparing life insurance policies in New Zealand

Comparing life insurance policies isn’t easy. There are many life insurance companies in New Zealand, each offering a range of products.

Even for the most patient person, buying life insurance can be considered a painful process.

Due to this reputation, one of the biggest mistakes Kiwis can make in regards to insurance, is not considering life insurance at all, or putting it off for too long.

Life insurance is typically considered as a result of a certain life event, such as getting a mortgage or having children, and helps protect your family should a claim need to be made.

Cove has pulled together this life insurance guide to ensure you know what to look for when comparing life insurance companies and policies to ensure you get the right amount of cover for you, and also to ensure you’re confident that you know what to look for when buying life insurance.

How do I get life insurance?

Life insurance can be purchased from a number of companies in New Zealand, either direct, or through a broker. The process to get a life insurance quote from each company varies from completing a form during a face-to-face meeting, or going through an online quoting process.

You will need to answer questions such as your age, gender, smoking habits, and any health issues you may have. Some life insurers also ask further questions such as any pre-existing conditions you may have such as asthma or diabetes, or how much alcohol you drink during a typical week.

Many New Zealanders do not have life insurance because they fear the process of getting a quote and buying insurance will be too time consuming and complicated. With advances in technology, new digital insurers are able to get you a life insurance quote quickly, and without asking a lot of questions that you may need a doctor or lawyer to decipher.

How do I compare all the various life insurance products?

When buying life insurance, no doubt you want to get the best deal from the best life insurance company in New Zealand. But where do you even start?!

Firstly, price isn’t the only thing to be looking at when comparing life insurance policies. It’s easy to fall into the trap of not comparing apples with apples. Keep in mind that like all products, insurance is no different in that you get what you pay for. Life insurance products range in value from those that provide basic cover with limited features, to those that provide comprehensive cover with a range of extra add-ons.

You should also be considering the financial strength of the company you are buying from, and the amount of cover you need.

Your individual situation will help guide you on what level of cover you need. Whether you are single without any family depending on you, looking to buy life insurance before starting a family, or considering life insurance as part of a new family, the amount of cover you buy should be enough to ensure those who depend on you won’t be struggling financially in the event of needing to make a claim.