If you already have life insurance but are about to have a child, buy your first home or become a professional hang glider pilot, now might be the time to reassess your level of cover.
Consumer NZ urges people to review their cover every few years, particularly after major life events. For example, you might need to increase your cover when you have small children and a large mortgage, and decrease your cover when the kids have left home and the mortgage is paid off.
With LifeDirect, taking a moment to review your life insurance when you hit the following milestones is a simple, smart and hassle-free way to protect your loved ones.
Getting marriedIf you don't have children, you may decide there's no need to take out life insurance when you get married or enter into a civil union.
However, some couples choose to buy life insurance so that if your partner dies, or is diagnosed with a terminal illness, you can pay the mortgage, cover funeral expenses and begin single life again without having to stress over the bills.
Buying your first homeYour house is likely to be the most expensive thing you ever buy, so it's important to protect it. Taking out the right amount of life insurance and keeping up with payments ensures your home will stay yours.
You should also review your life insurance when you increase the size of your mortgage.
Having childrenHaving a baby is exciting, wonderful and life changing. It's also a big responsibility, now and in the future, which is why many new parents start thinking seriously about life insurance for the first time.
While it's difficult to imagine not being around for your children, life insurance gives you peace of mind knowing that they'll be looked after if the worst happens.
If you already have life insurance, check your policy before your baby is born to decide whether you'll need to increase your level of cover. If you're a single parent, you may not need life insurance if your children would be able to live with their other parent and be financially supported untill they grow up.
Caring for a dependentThere's no need to insure a stay-at-home caregiver, right? Think again.
If your partner dies or has a critical illness and you have children or other dependent relatives, you'll need to take time off work to care for them or pay someone else to do it. Life insurance can take the financial pressure off at a time when you most need it with a lump sum payment.
After divorceDivorce changes everything, including your life insurance. You may need to change the beneficiary of your life insurance policy, or take out a policy on your former spouse to protect your alimony or child support.
If you don't own the policy, be aware that the policy owner can change the beneficiary or skip payments - which may cause the policy to lapse.
To cut down on divorce drama, make sure you understand the coverage your life insurance offers you before your split becomes official.
Buying a bach or investment propertyNew bach? Congratulations! Now's the time to reassess your life insurance cover. The same goes if you've just bought an investment property or a block of land.
Taking up a risky hobbyCouch potato turned thrillseeker? If so, check your policy to make sure you're still covered if you get seriously into motor-racing, parachuting, abseiling or a similarly risky hobby.
You may have to pay an extra premium loading per $1000 of cover, or you can ask for an exclusion from coverage in the event of you having an accident while indulging in your daredevil sport.