How does life insurance work?When choosing a life insurance policy, you'll be asked to select a lump sum payment amount. This amount is paid out to the 'policy owner' in the event that you pass away, or are diagnosed with a terminal illness and are unable to work.
Types of life insuranceThere are two types of insurance to choose from – the standard insurance product for most life insurance companies is called stepped cover (also called rate for age), the other option you have is level cover. The difference being that stepped insurance premiums will increase over a period of time, whereas level cover will stay the same price in the long term, but will be more expensive initially.
How much does life insurance cost?Your age, health, and pre-existing medical conditions are the key factors which will determine how much your life insurance premium payments will be. We've found that the average cover amount on LifeDirect is around $500,000 for most people. You're in charge of choosing how often you pay your premium payments to work best for you. Compare life insurance quotes from NZ's leading insurers to get a better idea of how much your premium payments will be.
Life insurance coverageLife insurance covers any cause of death, ranging from terminal illness to accidents. The only standard exclusion on life insurance is for suicide within the first 13 months of your policy being issued.
Your insurance payout may also be declined in the event of non-disclosure. Although rare, non-disclosure is when you fail to disclose something such as a history of illness, or if you're currently unwell with cancer for example. If you're unsure as to what information you should disclose on your application, our friendly Wellington based team can help walk you through your application. You can call us on 0800 800 400, or start a live chat online.