New job? Growing family? Planning for retirement? Life is full of changes and your personal insurance should keep up!
Personal insurance is there to provide peace of mind during uncertain times, but it’s only fully effective when it aligns with your current lifestyle and financial commitments. At Moneybox, we review our customers’ cover every year, but certain life events call for a closer look at your life, disability, and health insurance policies, ensuring you and your loved ones are protected when it matters most. Let’s explore some of the most common reasons for a review.
Buying a home or increasing your mortgage
Buying a property is a huge milestone and a major financial responsibility. If you’ve recently purchased a home, investment property, or increased your mortgage, now is the time to check if your insurance is keeping up. A mortgage is long-term debt that still needs to be paid even if you become ill, injured, or pass away. The right insurance ensures you or your family can stay in your home without financial strain.
If you have life insurance, it should at least cover the outstanding mortgage balance, so your loved ones aren’t left with debt. Income protection insurance should also be reviewed – does it cover enough of your income to keep up with mortgage repayments and living expenses? You might need to increase your cover (up to 75% of your income is allowed by insurance companies) or extend your benefit period to ensure long-term financial security.
Getting married or entering a long-term relationship
A serious, long-term partnership often comes with shared financial responsibilities, such as a joint mortgage, rent, or living expenses. If your partner relies on your income, it’s important to review your insurance to ensure you’re both financially protected.
This is one of the most common stages in a person’s life to secure life insurance. Life insurance can ensure you or your partner receive financial support if one of you were to pass away. If you already have a life insurance policy, now is the time to update your beneficiary details or increase your cover to reflect your new financial commitments. It’s also important to think about your lifestyle if you were to lose an income due to illness or injury. Securing or adjusting income protection, trauma and/or disability cover, is an important step when planning your future together.
Additionally, if you have health insurance, you may be able to add your partner to your plan, which can provide access to faster medical treatment and reduce financial stress if either of you were to experience an unexpected health issue.
Starting a family
Children bring greater financial responsibility, so starting a family is another top reason people choose to take out or adjust their personal insurance policies. Start by working out the financial responsibilities you have towards your children now and in the future (childcare costs, education costs, everyday living expenses, etc) and how insurance can provide support in different scenarios, such as loss of income or unexpected medical expenses.
If you’re young and healthy, increasing your cover is often affordable. Even if money is tight, having some level of life insurance and income protection insurance in place is better than none.
If you have existing health insurance, adding your child is quick and easy and often doesn’t increase premiums by much. Insuring children early helps avoid the high costs of medical treatments (like grommets or tonsil removal) and allows you to bypass long wait times in the public system. Many insurers also offer family plans, which bundle everyone under one policy for greater savings.
Changing jobs or becoming self-employed
A career change, salary increase, or starting a business impacts your financial situation, and your insurance should follow suit. If your income has increased, your lifestyle and expenses may have too, meaning your life, income protection, trauma, or disability cover may no longer provide enough financial security for you and your family. If your loved ones rely on your income, now’s a good time to reassess your cover and ensure it would provide the right level of financial security if something unexpected were to happen.
If you’re self-employed, losing employer-provided benefits like sick leave, annual leave, or group insurance plans can leave you financially vulnerable. Income protection insurance is a smart option for anyone who is self-employed because it replaces a portion of your income if you’re unable to work for a while due to illness or injury.
Also, check your health insurance – if your previous employer covered part of your premium, you may need to take out private cover to ensure you still have faster access to medical treatment.
Reaching retirement or becoming debt free
As you approach retirement, your financial needs might shift. If you’ve paid off your mortgage and your children are financially independent, you may not need as much life insurance. You may choose to reduce life insurance premiums or reallocate the funds to health insurance for aged care needs. A financial reset at this stage allows you to focus on protecting your health and securing peace of mind, so you can enjoy retirement without unnecessary expenses.
Divorce or separation
A divorce or separation can bring significant financial changes, making it essential to review your insurance policies. Ensure your beneficiaries are up to date and reassess your cover to align with your new financial responsibilities.
We’re with you all the way!
No matter where life takes you, we’re here to help. For generations, we’ve supported Kiwi families – from first-time home buyers to retirees – ensuring they have the right protection at every stage. If your circumstances have changed, now is the time to review your cover. Get in touch with one of our trusted advisors today, and we’ll make sure you’re covered for whatever comes next.