Starting out (early adulthood, 18-30)

Your twenties are often full of new beginnings: starting work, renting a room or a flat, paying down student debt or travelling the world. It’s an exciting, fast-moving time, and while insurance might not be front of mind, there are benefits to getting in early.

Some key things to consider:

• Health insurance: What would happen if you needed medical care that wasn’t urgent? While ACC covers accidents, many health issues don’t fall into that category - and public waitlists could potentially be long. Depending on your policy, private health cover can give you quicker access to diagnostics, treatment and surgery.

• Income protection: If you were suddenly unable to work, could you keep up with rent or bills? Income protection can replace up to 75% of your gross pre-disability income if illness or injury puts you out of action for a while.

• Life insurance: You may not have dependants yet, or own a house. But life cover can still be used to repay a personal loan, student loan and more if you were no longer around.

And there’s more. The younger and healthier you are when you apply for cover, the more affordable your premiums can be. Plus, by locking it in early, any medical conditions you may develop later in life will likely be covered (as long as you keep the policy!).

Starting a family

This stage comes with big shifts, both emotionally and financially. Whether you’re planning for children, buying a home or both, it’s a time when protecting the people you love becomes even more crucial.

Some key things to consider:

• Life insurance: If something happened to you, would your family be financially okay? Life cover provides a lump sum that can help pay off the mortgage, replace income or create a safety net for the years ahead.
  
  

• Income protection: With a young family relying on your income, how would you manage if that income stopped? Income protection can help maintain your lifestyle if illness or injury takes you out of work.

• Trauma insurance: Could you afford to take time off if diagnosed with a serious health condition*? Trauma cover pays a lump sum to give you breathing room. You can use this payout as you like - whether to focus on recovery or take pressure off your finances.

*Note: Different providers include different conditions, so it’s important to check what’s covered.

Building wealth (30-50s)

Between juggling a mortgage, raising kids, managing debt and supporting ageing parents, this can be a time of high responsibility and high risk. If you’d like to protect the financial progress you’ve worked so hard for, personal insurance may be worth exploring.

Some key things to consider:

• Life insurance: Has your mortgage grown? Do you have higher levels of debt, and family relying on your income? It might be time to take a closer look at your level of cover, and adjust it if need be.
• Health insurance: Many people rely on private health cover at this stage to avoid delays for non-urgent but important treatments, so they can get back on their feet faster. 
• Trauma insurance: This cover can ease financial pressure after a difficult diagnosis, with the ability to use the lump-sum payment for any needs – including reducing debt or covering day-to-day costs.

• Income protection: Are you the breadwinner in the household and/or have major financial goals on the horizon? Protecting your income can be key to keeping plans on track.

Nearing retirement (50s-60s)

As you prepare for retirement, your financial focus may shift from building wealth to preserving it. You may be thinking about helping grown-up kids, downsizing or changing your lifestyle - and your insurance can reflect that.

Some key things to consider:

• Life insurance: With debt levels possibly lower and your kids flying the nest, you might think about reducing your cover or shifting focus to legacy planning.
  
  
• Health insurance: Health risks tend to increase with age and so do insurance premiums, so having the right level of cover (not too much, not too little) is all-the-more important. If you’re looking to get cover now, pre-existing conditions will likely be excluded but health cover may still be worth it. Get in touch to learn more.

Retirement (65+)

What comes to mind when thinking about retirement? Probably freedom and flexibility - but also new financial considerations.

Some key things to consider:

• Health insurance: Premiums rise sharply in this age group. Is your current cover still suitable? Could removing some extras help keep it manageable?
  
  
• Life insurance: You may choose to maintain a smaller policy to cover funeral costs or leave a legacy, or divert the budget to other insurance needs (like health cover). 

Need help reviewing your insurances? 

We’re here for you. At Insurance Link, our advisers can help you navigate your insurance needs, at whatever life stage.

If it’s been a while since you reviewed your cover, now can be a great time to check in.

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 financial advice.

Please click here to view our full disclosure statement.