Young Single
Insurance covers for young singles often came under Parent's policies, particularly Health Insurance. With our public health system and long waits many parents preferred to have comprehensive health insurance on their children, including Dental and Optical benefits. Children's Trauma cover (often a benefit under a parent's trauma cover), provides funds should the child suffer a trauma event and may be used to replace lost income for a parent off work. With a funeral costing up to $20,000 some parents put minimal life cover in place on their child to provide funds should sudden death occur.
- Health Insurance
- Child's Trauma Cover (up to Age 21)
- Life Cover for potential funeral costs
- Premiums: Generally low to very low
Young Couple
For some young couples without children, insurance was not of major importance, until they understood the implications of not having it. Life insurance was not a high priority for most. Health Insurance was of interest to many as they understood the problems of others in getting medical attention - particularly parents. Some showed increasing interest in Income Protection insurance as their understanding of the limitations of ACC grew, and the realisation that their income and the protection of it could provide stability for their lifestyles and future goals.
- Health Insurance
- Income Protection
- Life Cover for potential funeral costs
- Premiums: Generally affordable for most. Life insurance - low. Most premiums for Income Protection - tax deductible.
Young Family
As soon as children arrived, Life Insurance became very important for most - particularly if there was a mortgage. Generally life cover on both adults was put in place. Income Protection and Trauma cover were also important particularly where the family depended on one income. Many considered Mortgage Insurance as an alternative to comprehensive income protection and life cover. Health Insurance was in place if affordable after other insurance costs, particularly if access was available to a Health Insurance Scheme via work.
- Life Insurance / Trauma / TPD
- Income Protection / Mortgage Protection
- Health Insurance if affordable
- Child's Trauma Cover
- Premiums: Generally affordable. Life insurance - low. Most premiums for Income Protection - tax deductible. Most reviewing covers as incomes change.
Middle Family
With debt still often high due to mortgage, credit cards, business ventures, life insurance was still seen as being the base requirement by most people, with many increasing levels of life cover to better provide for families and partner should death happen. Most put in place some level of trauma cover and possibly TPD cover. With possibly both adults now being at work, income protection policies were adjusted in line with changing needs and also changing incomes. With increasing living costs some retained Health Insurance if possible or increased excess levels to keep affordable.
- Life Cover / Trauma /TPD
- Income Protection / Mortgage Protection
- Health Insurance
- Children's Life and Trauma
- Premiums: Becoming more expensive. The need to be strategic in covers and review often in line with changing debt levels and incomes.
Older Family
- Health Insurance was now seen as being important with more likelyhood of need for Tests and Hospital Admission. Increased health insurance premiums could be balanced by most with the reduced need for life insurance and trauma cover, due to reduced mortgage and loan debts. Income Protection policies were adjusted in line with savings and the ability to possibly have longer waiting times before claiming, and considering Partner's income. Once children reach Age 21 they moved to their own Health Policies. Some with businesses needed to consider life cover and businesses insurance covers.
- Health Insurance
- Life Cover / Trauma / TPD
- Income Protection
- Business Insurances
- Premiums: With premiums increasing steeply, there was the need to consider the financial risks, and balance risk with affordability. Health Insurance was a priority.
Mid Life Couple
With the mortgage paid off in most cases and debt reduced to minimal credit card debt, and with savings and Kiwisaver increasing, the need for substantial life insurance has reduced. The cost of Trauma insurance and TPD cover is expensive, so in most cases these have been reduced to small levels of cover. Health Insurance premiums are increasing rapidly every year but with waiting lists under pressure many decided to continue Health Insurance with the savings they have made from reduced other covers. Some considered Funeral Insurance. Business covers may be required.
- Health Insurance
- Minimal Life / Trauma / TPD
- Funeral Cover
- Business Insurances
- Premiums: Most insurance funding was now going into Health Insurance. Premiums for most other covers became unaffordable unless reduced to minimal levels.
Retired Couple
All insurances funds were now going into Health Insurance within some cases funds being used for a small life insurance policy or a Funeral Insurance policy. Health Insurance was reviewed annually to keep premiums affordable within budgets. This was done by increasing excesses as required. Keeping Specialist and Diagnostic covers was important to many for peace of mind and easy access for scans and Specialist appointments. Many had enough savings and assets to take care of funeral costs, although some had Funeral Insurance in place.
- Health Insurance
- Funeral Cover
- Premiums: All or most insurance funding was now going into Health Insurance. Some funding for Funeral Insurance if in place.
Solo Parent
Circumstances differed greatly with Solo Parents. Incomes, work status, other parent support, accommodation, and debt levels. Life insurance was of great importance for most with the need to provide long term care if needed, and futures for children. Depending on funds, Trauma cover was also put in place, usually as accelerated against life cover. If working and affordable, Income Protection was put in place. Children's Trauma cover, and also minimal life cover (aged 10 or older) was also considered should a child's funeral occur and funds be needed.
- Life Insurance
- Trauma Cover
- Income Protection
- Children's Trauma and Life Cover
- Premiums: Life and Trauma covers were generally affordable. Some level of Income Protection was available for some who were working. Children's covers minimal.
Gay Couple
Life insurance and trauma cover was involved on both Partners, particularly if children were also present. As both partners are often working funds were often available for Health Insurance and also Income Protection insurance. If children are involved in the relationship, life insurance was given a higher priority with remaining available funds going towards Income Protection and Health Insurance. Mortgage Protection was an alternative to Income Protection. Over time covers and levels of cover were reviewed and adjusted in line with ages, incomes, careers, and growing children.
- Life Insurance / Trauma / TPD
- Income Protection
- Health Insurance
- Children's Covers
- Premiums: Depending on Age and if children are present, premiums could generally be customised to meet the needs of most couples.
Young Professionals
Income Protection was of high importance to maintain lifestyle should long term illness or injury occur. With some climbing career ladders quickly, income protection covers needed to be reassessed often. Many had access to Health Insurance schemes through their work, those who did not often put cover in place. When moving jobs some had options of retaining their Health Insurance covers. Those moving into longer term relationships sometimes considered life and trauma cover options.
- Income Protection
- Health Insurance
- Life / Trauma / TPD
- Premiums: Life and Trauma covers were generally affordable. Some level of Income Protection was available for some who were working. Children's covers minimal.
Older Single
The insurance needs of Older Singles were varied. In some cases there were still dependents which required some level of life insurance. Some had debts they wanted cleared upon their death. Some desired giving money to a charity. For most, some level of Income Protection was important, along with some Trauma and TPD cover to assist with potential home care costs if needed. Some with mortgages chose to have Mortgage Insurance. Health Insurance was put in place for many - flexible cover which could be adjusted as premiums increased.
- Income Protection
- Life Insurance / Trauma / TPD
- Health Insurance
- Premiums: Depending on income, debt levels, and insurance needed, premiums were affordable for most, but required regular reviews and adjustments.
Self Employed
I found many self employed people had no income protection in place, but put cover in place once they fully understood the financial risks they had as self employed. Also the realisation that income protection premiums could be tax deductible, motivated some. Most had a need for Life Insurance, Trauma, and TPD cover for dependents and mortgages. In some cases Health Insurance was included as a business expense to make sure they could get treatment and get back to work quickly. Some required business Partnership and/or Key Person covers and Staff Insurance schemes.
- Income Protection
- Life / Trauma / TPD
- Health Insurance
- Business Covers / Staff Covers
- Premiums: Generally affordable for most. Income Protection premiums tax deductible. Health Insurance via business. Business covers paid by business.