As time goes on, the average life expectancy of New Zealand’s population is increasing (according to the World Bank), with many of us living longer than before. The added time we have on Earth can impact our lives in plenty of ways – including our retirement savings, financial planning and Life Insurance.
To make sure you’ve got life covered, let’s take a look at how New Zealand’s life expectancy can affect your Insurance.
What are the stats?
The most recently-available data from the World Bank shows that New Zealand’s life expectancy from birth in 2015 was 79.73 years for males and 83.27 years for females. In addition, mortality rates are decreasing overall.
As a country, we’re also sitting slightly ahead of other developed nations like Australia (82.45), the UK (81.62) and the United States (78.74) – but just behind Japan at 83.84 years.
Living to a ripe old age takes a mix of willpower, a healthy diet and good habits. We know that it’s important to exercise regularly and eat the right foods – but being healthy doesn’t just increase your chances of long life; letting go of harmful behaviours like smoking could lead to lower premiums on your next Insurance policy. And, if you’re going to be around a little longer, those savings could really come in handy.
What does this all mean for Life Insurance?
The longer we live, the more long-term affordability becomes important. That’s why it’s a good idea to aim for cover that isn’t just suitable for the needs you have today, but also sustainable in the long run.
One of the options to consider is Level-Premium Insurance. Unlike Stepped Premium Insurance, where premiums increase as you age, Level Premiums stay the same through the contract – they usually start higher than Stepped Premiums, but they can give you more certainty on cost and save you money over time.
If you’re looking to get your Life Insurance sorted, please don’t hesitate to get in touch. Every Insurance provider is different; as Insurance advisers, we can help you secure the right level of coverage, whether you live to 80 or 108.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek advice from a financial adviser.