Mention the words ‘life insurance’, and many people grow a little weary.

Discussing, planning or simply thinking about your passing is not easy – but it’s essential.

Avoidance won’t change the inevitable, or provide a solution, and putting a plan in place can make all the difference in your loved ones’ financial situation during a time of grief.

Having this discussion as early as possible can save you and your loved ones from sleepless nights of worry, by safeguarding their financial future in the event of your passing.


How life insurance works

Life insurance offers financial protection both during your lifetime and after your passing.

Your greatest financial asset is you, and your ability to earn income. Once that income source is gone, life insurance ensures your loved ones are taken care of.

It’s often misunderstood or overlooked, as it’s not merely a policy; it’s a strategic investment in your family’s well-being and a cornerstone in securing your financial legacy.

Some simple ways it can be used:

  • Covering funeral costs
  • Leaving a legacy
  • Paying outstanding short-term debt or a mortgage.

Typically, life insurance provides a lump-sum payment to your loved ones upon your passing, ensuring they receive much-needed support during a difficult time.

In some circumstances, you may be able to receive a pay out if you’re diagnosed with a terminal illness (depending on your policy).

This dual function ensures that your loved ones are taken care of and financially secure, and can be an essential financial tool if you haven’t accumulated other significant assets to leave behind.


How we can help

We know that navigating the insurance world can feel overwhelming.

There are many providers to select from, as well as many possibilities to structure your policy. Our advice experts help with the heavy lifting by crafting a plan for your unique situation.

Willie Moala, AdviceFirst National Insurance Lead, shares an example of where he’s seen the power of how life insurance helped his clients.

“A couple came to me considering cancelling their policy. It’s a query we’ve seen often, with the cost of living making things more challenging. I assessed their situation, and I saw they were actually paying more than necessary, for the cover they needed.”

“I helped them restructure their cover: I reviewed their overall situation, considered their insurance goals and provided meaningful advice which meant they could both continue being covered at a price they could afford”.

“I’m so glad they came to me during that time. A few years later, we received notice that unfortunately one of them had passed away. Thankfully, we were able to see the intentions laid out of the policy come to fruition.”

“They were able to pay for the funeral, cover outstanding debt so the widower didn’t need to worry, and still have some money left to leave a legacy for their four grandchildren,’ Moala says.


When is the best time to take out life insurance?

If you’re considering taking out a policy, there is no time like the present.

When you’re young, healthy, and much of your life is ahead of you, it can be tempting to wait before taking out a policy. We also understand that, given the cost-of-living situation at present, it can feel like an unnecessary added expense.

But don’t let your ‘wait’ become ‘too late’. Waiting is not without its risks and could also cost you more in the long run.

Here are some reasons why:

  • Waiting runs the risks of being ineligible for cover or not receiving the desired cover in future.
  • Premiums only go up as you get older – by taking out a policy early, you can lock in those lower fixed costs to prevent a drain on your retirement savings.
  • Accidents can (and do) happen – you can’t predict life events, but you can prepare for them.

For example, if you’re in your 20s, you might pay a fixed premium of say  $25 a month for the same cover that would cost you $500 a month in your 50s. Taking out cover early allows for comfortable long-term budgeting, and prevents you having to make the difficult decision of cover vs cost later on in life when life insurance becomes a necessity, not an option.


The unfortunate reminder of the cost of waiting

Willie shares the story of another client where circumstances did not work out in their favour.

“A family had moved here to New Zealand from overseas, came to me for advice, and I created a plan for their situation. They decided to decline taking out a life insurance policy as they had other priority living costs to focus on.”

“Sadly, a few years later, we heard that the partner had received a terminal diagnosis.”

“They deeply expressed their regrets in not taking out a policy, and unfortunately for them, there was no longer anything I could do for their situation. It was just too late to take a policy out at this point,” Moala says.

“It’s sad to hear of situations like this, and we share them as a reminder that nothing is a given in life. Unforeseen events can happen, and expert advice ensures you’re presented with the best possible options for your circumstances,” he adds.

We understand that everyone’s situations are different and fitting insurance into your financial plan can feel complicated.

When you engage our services, we create a plan that works for your unique situation, so you don’t have to risk waiting for the right moment, or potentially waiting too late.


Secure your financial future and protect your tomorrow, today

As you navigate the complexities of financial planning, we urge you to view life insurance not merely as a policy but as a vital piece of your financial puzzle.

It’s an investment in the legacy you wish to leave behind and a commitment to ensuring financial stability for those you cherish.

With the right foresight, planning, and expert advice, you can rest assured that your loved ones are protected, even in your absence.

If you’d like to review your current insurance plan and ensure it’s still fit for purpose, please get in touch with us to book with one of our expert advisers.

To learn more, call us at 0800 438 238 or email