How do I know if I’m underinsured?

Having the right insurance policy is a balance between affordability and coverage. You don’t want to have NO insurance but you definitely don’t want to have the WRONG cover.

Life insurance is designed to protect your loved ones if you were to pass away or become terminally ill. Many Kiwis do have life insurance but don't know they're under-insured for when those hard times hit.

For something as important as your family’s financial well-being, not having adequate coverage is a big problem. It is vital that Kiwis regularly assess their insurance coverage and whether it will be enough for their needs.

Do I have enough insurance?

The appropriate amount of coverage will differ for everyone depending on your assets, health, income, and dependents. You may have enough personal savings to cover a loss of your income for a period of time. If you are in a dual-income household, you may only need to insure the primary income source since it may be enough to cover the secondary source of income if something happened.

In New Zealand, being under-insured is quite common, typically because we’ve not updated it as our lives change.

As your life changes over time, so do your insurance needs - be smart, be safe - keep reviewing your cover.

For example, if you have another child, you may need to reassess your coverage to make sure it is enough for this additional dependent. Insurance is not the kind of investment that you should

“set and forget”. Make reviewing your insurance part of your yearly health checks!

When should I assess my cover?

• New members in the family? Have you had more children?

• Income has changed since policy started

• Non-earning partner or spouse is uninsured

• You have a significant amount of debt

• You or your family’s financial goals have changed

• You have moved house and have a new mortgage

Can I afford life insurance?

Your life insurance policy will depend on your age and health. There are other factors considered such as whether you’re a smoker, your occupation, your exercise levels and even your family health history.

The most effective way to find the most affordable policy that offers the best coverage is by comparing.

Moneycompare.co.nz is designed to help you make a fully informed choice about your insurance policy, and get the coverage that is right for you.

The team at Money Compare have partnered with insurance experts who can help match you with the right policy for your budget and circumstance.