5 Tips to Choose Insurance That Fits Your Lifestyle
Here's how to pick insurance that actually works for you:
Check your lifestyle
Learn insurance types
Calculate coverage needs
Compare options
Get expert advice
Why it matters:
Avoid paying for coverage you don't need
Protect what's important to you
Save money in the long run
Quick comparison of main insurance types:
| Type | Covers | When It Pays |
|---|---|---|
| Life | Death benefit | When you die |
| Health | Medical costs | When you need care |
| Income Protection | Part of income | If you can't work |
| Trauma | Lump sum | For specific illnesses |
Key takeaway: Review your insurance yearly. Your life changes, so should your coverage.
Need help? Talk to an insurance advisor or use comparison tools to find the right fit.
Look at your current lifestyle
Your daily life shapes your insurance needs. Here's how to review your lifestyle for the right coverage:
Your daily activities
What you do every day affects your insurance risks:
Work: Your job impacts health and disability insurance needs.
Commute: Long drives? You might need more auto insurance.
Hobbies: Extreme sports? They can push up life insurance costs.
"High-risk hobbies like skydiving or smoking can increase your premiums." - Insurance Industry Report
Health habits matter too. Regular exercise and a good diet can lower life insurance rates. Why? You're less risky to insurers.
Future changes
Life doesn't stand still. Think about:
Family plans: Marriage or kids? You'll need more coverage.
Career moves: Starting a business? Consider income protection.
Home buying: You'll need property insurance.
| Life Event | Insurance to Consider |
|---|---|
| Marriage | Combined auto, life |
| New baby | Increased life, health |
| Home purchase | Property, liability |
| Business start | Income protection |
Pro tip: Review your insurance yearly. Life changes fast, and your coverage should keep up.
"After big life changes, talk to your insurance agent about updating your policies." - Financial Planning Association
Be honest about your lifestyle when applying for insurance. It affects your rates and eligibility.
2. Learn about different insurance types
Let's break down three key insurance types to help you pick the right coverage:
Life insurance basics
Life insurance pays out if you die. It's there to help your family cover costs when you're gone.
Got a family or debts? Life insurance might be worth considering.
Health insurance overview
Health insurance helps with medical costs. In New Zealand, you get some public healthcare. But private insurance can offer:
Shorter wait times
Coverage for extras (like dental)
More choice in doctors and hospitals
Keep in mind: You'll often have out-of-pocket costs like deductibles and copays.
Income protection and trauma insurance
These help if you can't work due to illness or injury.
Income protection:
Pays part of your income if you can't work
Payments are tax-free
Trauma insurance:
Pays a lump sum for specific serious illnesses
Use the money however you need
Here's a quick comparison:
| Insurance Type | What It Covers | When It Pays |
|---|---|---|
| Life | Death benefit | When you die |
| Health | Medical costs | When you need care |
| Income Protection | Part of your income | When you can't work |
| Trauma | Lump sum | For specific illnesses |
Your needs change over time. Review your insurance yearly to keep it in line with your life.
3. Figure out how much coverage you need
Figuring out your insurance coverage isn't rocket science. Here's how to do it:
Your income and expenses
First, look at what you earn and spend each month. Include everything:
Housing costs
Debts
Food
Transportation
Kids' stuff
Fun money
Savings
Planning for dependents and the future
Your life stage matters:
Single? Think about yourself. Serious Illness or Total & Permanent Disability Insurance might be enough.
Got kids? Factor in their future costs.
Older family? Consider a few more years of expenses.
Near retirement? Look at debts, health issues, and funeral costs.
Tools to estimate coverage
Here are three ways to figure out how much insurance you need:
1. Income multiplier
It's simple:
Under 50? Multiply your yearly income by 10-12.
Over 50? Multiply by 6-8.
2. Needs analysis
| Step | What to do |
|---|---|
| 1 | Add up yearly living costs |
| 2 | Multiply by years of support needed |
| 3 | Add any debts |
| 4 | Include future education costs |
| 5 | Add funeral expenses |
| 6 | Subtract savings and existing coverage |
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4. Compare different policies and providers
You've figured out your coverage needs. Now it's time to shop around. Let's dive into comparing insurance policies and providers in New Zealand.
Looking into New Zealand insurance companies
Start with local, well-reviewed companies. They get the Kiwi market and often offer more tailored service.
Top NZ players include:
Did you know? Southern Cross Health Society dominates with a 62% market share and handles 73% of all personal health insurance claims in NZ.
What to look at when comparing policies
Don't just chase the lowest price. Here's what matters:
| Factor | Why it's important | Example |
|---|---|---|
| Coverage limits | Avoid being underinsured | Annual caps: $500,000 vs $1 million |
| Exclusions | Know what's not covered | Pre-existing conditions, specific treatments |
| Premiums | Your regular cost | Can differ by hundreds yearly |
| Customer service | Affects claim experience | 24/7 support, online claims |
Want a shortcut? Use comparison sites like Money Compare or Canstar to see options side-by-side.
Here's a snapshot of NZ health insurers, based on a Canstar survey of 1,362 Kiwis:
| Provider | Overall Satisfaction | Value for Money |
|---|---|---|
| ASB | 5 Stars | 5 Stars |
| AA Health Insurance | 5 Stars | 4 Stars |
| AIA | 4 Stars | 4 Stars |
| NIB | 3 Stars | 3 Stars |
But remember: The best policy for YOU depends on YOUR needs. Don't just pick the highest-rated without checking if it fits your life and budget.
One last thing: Always read the fine print. The benefits summary should clearly show your out-of-pocket costs, including copays, coinsurance, and deductibles.
5. Ask an expert for advice
Insurance can be confusing. That's where insurance advisors come in. They're like your personal insurance guide, helping you navigate the world of policies and coverage.
How to pick a good advisor
Here's how to find an advisor worth their salt:
Check credentials: Look for a Financial Adviser (FA) who follows the Financial Advisers Act.
Experience matters: Aim for someone with 3-5 years in the game.
Specialization is key: Need health insurance? Find an advisor who knows health insurance.
Read reviews: Happy customers often mean a good advisor.
Clear communication: Pick someone who explains things well and responds quickly.
Why talk to an advisor?
1. Market knowledge
Advisors know the ins and outs of different policies. They can spot deals you might miss.
2. Time-saver
Let an advisor do the legwork instead of spending hours comparing policies yourself.
3. Money-saver
Advisors often get better rates. They help you avoid over-insuring or under-insuring.
4. Your advocate
If you need to make a claim, a good advisor will fight for you.
Richard W. Lavey, President of Hanover Agency Markets, says:
"Consumers really value the advice independent insurance agents provide. Independent insurance agents are trusted experts similar to other experts, like financial advisors, accountants and even your doctor – experts who have your best interest – and best future – in mind."
About Insurance Genius services
Insurance Genius connects you with top insurance advisors. They offer:
Free Review of any current policy (ensure your coverage is right)
Free Consultation to find a new policy (get new cover you need)
Wrap-up
Choosing insurance isn't fun, but it's important. Here's what we covered:
Quick review
Check your lifestyle: Your daily life and future plans matter.
Know insurance types: From life to health to income protection.
Calculate coverage needs: Think income, expenses, and dependents.
Compare options: Shop around.
Get expert advice: Sometimes you need a pro.
Keep it current
Your life changes, so should your insurance. Why?
Big life events: Marriage, kids, new house? They affect your needs.
Health shifts: New conditions might need coverage tweaks.
Money changes: New job or pay cut? Adjust your coverage.
Tim Grafton, CEO of the Insurance Council of New Zealand, says:
"Insurance is not a set-and-forget product. Your circumstances change over time, so it's important to review your cover regularly to ensure it still meets your needs."
Pro tip: Set a yearly insurance review reminder. One hour could save you thousands.
More help and information
Need help picking insurance? Here's where to look:
Insurance Genius services
Insurance Genius offers personalized advice to find your perfect policy. They provide:
One-on-one consultations
Policy comparisons
Claims support
Visit insurancegenius.co.nz to get started.
Common insurance questions
Do I need life insurance without kids?
Not always. But consider:
Do you have debts someone else would pay?
Want to leave money to family or charity?
How often should I review my insurance?
Yearly, and after big life changes like:
Marriage or divorce
Having a baby
Buying a house
Changing jobs
How to know if an insurance company is trustworthy?
Check these:
Are they on the Financial Service Providers Register?
Do they belong to a dispute resolution scheme?
What if I have an insurance complaint?
1. Contact your insurance company first
2. If unresolved, use their dispute resolution scheme
FAQs
Is it worth having life insurance in NZ?
Life insurance in New Zealand? It depends on your situation.
Got people who rely on your income? Life insurance can be a lifesaver (pun intended) if you're not around anymore.
Here's the deal:
If you've got a family or debts, it's probably a good idea.
No dependents or debts? You might not need it.
MAS, a Kiwi insurance provider, puts it this way:
"If you have debt or people who rely on you financially then you should seriously consider getting some life insurance."
Bottom line: Think about who needs you financially. That's your answer.