Protect Your Family's Future with Life Insurance
Everyday you constantly run the risk of harming your health and way of life, but what would happen to your loved ones if you passed away too soon?
Truth be told, losing someone you care about is never easy, but the emotional challenges shouldn’t have to be exacerbated by financial hardships. Even if you aren’t around to care for the people you love, life insurance helps ensure that they will have financial security.
Read on to learn more about the life insurance details specific to New Zealanders or contact our friendly team to receive affordable quotes from our trusted life insurance brand.
What is life insurance and how does it work?
Life insurance payment provides a tax-free lump sum payment on your death or if you are diagnosed as being terminally ill, which can help your family continue to live the life you’ve planned together.
The ideal situation is to leave your family in a position as if you were still here financially.
We are a trusted life insurance broker and one of our advisers can sit down with you and your partner, in the comfort of your home, and develop your family’s Personalised Protection Plan to determine the ideal level of Life cover you need for your family’s unique circumstances and needs.
How does life cover work in NZ?
In short, life insurance works like this:
- An applicant considers their need for financial support in the event of death, or total and permanent disability (if they are unable to ever work again);
- Most commonly, life insurance specifically is designed to support your loved ones, beneficiary/ies, dependents, or funeral costs in the event of death; when someone passes away, not only are they gone, but so too is their income. In a family situation this can cause a catastrophic financial hardship. When assessing the amount of cover needed, an insurance adviser will generally look at recommending the clearing of debt, and the replacing of the key income earners income, for an agreed period.
- If the policy holder passes, and as long as the terms and conditions of the policy are met, the policy amount is paid out to the beneficiaries.
- Lastly, the policy holder (while alive) will pay regular ‘premiums’ to maintain their policy and protection. To summarise, this simply means regular payments that the policy holder makes to maintain their insurance.
There are some pre-existing conditions which could modify the amount of or type of life insurance coverage you qualify for as well as some conditions surrounding the death of the policy holder that may prevent payout. We always recommend speaking to an insurance broker about your individual insurance needs to best support your loved ones in the event of an accident, illness, or death.
Do you have to pay tax on life insurance in NZ?
We’ll keep this one short and sweet: no, at present in New Zealand legislation dictates that the proceeds received from paid life insurance policies are usually tax-free if and when the proceeds are paid directly to an individual or an estate. These benefits are paid out to support funeral expenses and other associated costs with end of life planning, living costs, and minimise financial stress after the policy holder has passed from an ongoing illness or unexpected event.This is the most common situation in the case of death of the policy holder when the beneficiary receives the proceeds from the insurer; however, it’s worth pointing out that with all insurance claims and policies, some subjective factors may create a unique case.
If you suspect that you, your beneficiaries, or if you are the beneficiary of a life insurance policy would fall outside of the standard individual or estate claim we highly recommend speaking with an expert insurance broker to receive professional advice and make sure you know what your tax obligations could be.
One final recommendation would be to receive financial advice at the same time. Together, both an insurance broker and financial partner can ensure that you and your family will be able to manage a challenging time should the unthinkable happen without additional money-related stress.
What conditions disqualify you for life insurance?
We’re careful about using the word ‘disqualify’ as we wouldn’t want any of our potential or existing customers to believe they are at fault for pre-existing conditions. That said, there are certain types of pre-existing conditions that could limit the amount and/or ability to be covered by new life insurance policies, including:
- Cancer
- Diabetes
- HIV/AIDS
- Heart Disease
Among others. While disclosing that you have a pre-existing health condition does not automatically disqualify you from being able to obtain a life insurance policy, it may influence your policy, premiums, or coverage in the following ways:
- Your premiums may increase
- The amount of coverage you qualify for may be reduced
- The type of life insurance you can buy (for example, income protection insurance versus mortgage protection insurance)
Lastly, it’s important to know that there are some circumstances that may result in end of life by which life insurance policies may not pay out to the beneficiaries as intended, including:
- Suicide within 13 months of taking out the new policy.
- Terminal illness related to a known but undisclosed pre-existing health condition
Among others. Like we said, having a pre-existing health condition may not prevent you from getting the life insurance protection you want and need–but it is important to work with a broker who can help you navigate the application process.
Don’t take our word for it
here’s what our clients say
Andy has been very helpful, we couldn't have filled out the paperwork without him. He is friendly and courteous and a pleasure to deal with.
“My wife and I are so very thankful for the sincere and professional support we have received from Chris Goddard over the last year as we have worked through a very rough time. We would have never made a claim without his support and advice. He has offered valuable advice every step along the way, offering to do things above and beyond, showing his sincerity. We were just talking yesterday about how lucky we are that we signed up all those years ago when we got our mortgage for the extra protection - mortgage and income protection. Because of this, I am now receiving extremely expert and expensive help from medical professionals that I would otherwise not have access to. I have advised several friends and family members recently of the services provided and will continue to do so!".
Great to deal with. All the options were easily explained and pointed out the ‘pros and cons’ thoroughly. Exceptional service.
"During our first meeting Nina was friendly and efficient, setting us at ease while establishing our occupations, financial restrictions, health history and insurance requirements.
Nina prepared our insurance packages, emailed them to us then we met again to the discuss the options she had clearly illustrated. Due to changing circumstances Nina requoted our options three times during which she travelled a long distance to meet with us and discuss anything we did not understand in a knowledgeable and concise manner.
My husband and I are happy to recommend Nina as a Financial Advice Provider to any prospective clients."
"Omg I am crying right now. Thank you so much. I cannot believe it, this money would come at a perfect time you have no idea. We are a 1 income family & things have been very tight. You are amazing !! Your customer service is top notch".
“Can I please take this opportunity to say how much I have appreciated your kindness and support throughout this entire journey I have been on and with such a great outcome. You were there for me right from the start and just talking to you, having you listen to me at my lowest and also helping me through all the paperwork, that, I am very grateful for .
Your company is very lucky to have you. Once again Ryan you are the best .”
"Top class advice, great service, good regular feedback. Thank you, Foster"
“Michael who was the friendliest most professional person to help us choose the right plan for us moving forward. Excellent communication made the process very easy and stress free. Michael was available to answer any questions at any time. Highly recommend Michael and Adelphi for all your insurance needs”.
"Honest advice from Chris based on his experience with clients and insurers. He went out of his way to schedule times which suited our family".
"Nina was very knowledgeable and presented an informative and balanced description of the various products. I felt that she had the best outcome for our situation front and centre, rather than trying to push products that we didnt need."
“Ryan has been helping me with my claims for the last few months. I have ongoing health issues which can be very stressful at times, however, Ryan has been nothing short of amazing in helping me with the NIB processes. His thorough attention to detail, reliability, friendly support and kind ear has really taken the load and stress off my shoulders. He gets back to be very quickly and has things sorted within days. He explains the NIB processes in a way I understand and makes me feel valued. He has provided me with remarkable service and I cannot fault his work!!”
“I recently dealt with Andrew to help with my KiwiSaver hardship withdrawal. In what was a stressful time Andrew was very professional, he understood my needs and made the process simple and easy. Would definitely recommend Andrew for anything KiwiSaver."
"Nina is an amazing professional. Besides having a lot of knowledge on what she sells, she was able to explain me in a language I could understand. She is patient, compromised, and really helped find the best option for me. She was everything I needed in such a hard time for me. I can recommend her services with my eyes closed."
