How to choose the right life cover for you and your family
With so many different life insurance providers and products out there, it can be difficult to know just what cover you need. The options and jargon can seem overwhelming, and the premium costs might feel a bit out of reach for your budget.
Whether you already have life insurance and are looking for a better option, or you’re just getting started, here are some helpful tips to show you how to compare life insurance to get the right cover for you and your family.
1. Take stock of your situation
Before delving into the different life insurance products out there, take stock of your current financial situation and your future goals. If the worst should happen, what kinds of things are most important to you? Will you need to cover a mortgage, provide for your children's education, or ensure ongoing support for your family? Knowing your priorities will give you a solid foundation when comparing life insurance products and providers.
2. Determine the type of cover you need
There are a variety of life insurance options, and each type comes with its own features and costs. The most common type of life insurance in New Zealand is term life cover, which provides cover for a period of time and pays out a lump sum if you die within this period. To save you time researching the different types of life cover, it’s best to sit down with a financial adviser who can explain it all to you.
3. Shop around
It’s a good idea to do a bit of shopping around before you decide on a life insurance policy. There are plenty of great comparison tools out there, and you can now easily request quotes from multiple insurance providers online. Take a look at the premium amounts for each quote carefully and make sure that you’re comparing quotes for the same cover.
4. Look for additional benefits
Life insurance policies often come with additional benefits, which can include options for critical illness coverage, disability protection, and more. Take a look at the additional benefits offered by each insurance provider to determine which is the best fit for your situation. Some life insurance policies will also include coverage for children, so if that’s a priority for you, make a note of the ones that offer this.
5. Beware of any policy exclusions
Life insurance policies may have specific exclusions that limit coverage under certain circumstances. It’s important that you read the policy documents carefully to understand these exclusions, especially if you have any pre-existing health conditions or are looking for something specific to be covered.
6. Read independent reviews
Once you’ve got an idea of the best life insurance policy for you, do a bit of research into the actual provider themselves. Read independent reviews of the company, focusing on feedback around claims and customer service. Even if your preferred provider has fantastic reviews, it’s important to read any negative reviews to see if there’s a certain area where they don’t do so well.
7. Seek professional advice
If navigating the process of comparing life insurance quotes feels overwhelming, don't hesitate to reach out to a qualified financial adviser like those at Union Plus. Our expertise can provide personalised insights into your unique situation and help you make a well-informed decision for the future of you and your family.
To book a free, no-obligation review, contact us today–we’re even offering a $100 voucher towards your first premium! See further details below.
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