How much does life insurance cost?

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Life insurance can give you peace of mind that your family’s financial future is protected. But you may be wondering, how much does it cost?

Your life insurance cost will depend on your personal circumstances and the level of cover you need. To find out how much you will pay, you can request a quote from a few insurers and compare prices.

Each insurer has their own process to work out the cost, but typically, they will ask you about the level of cover you want, your age, gender, lifestyle, health, and if you're applying for a single or joint policy. With Seniors Life Insurance, you only need to answer eight health questions to apply for cover.

At New Zealand Seniors, we believe that while green Kiwis have their charm, gold Kiwis are the best! That’s why we specialise in helping Kiwis aged 50 and over to protect their golden years. We care about everyday New Zealanders like you and want you to be able to safeguard the life you’ve worked hard to build.

Remember, the cost of life insurance can change over time. This may depend on whether you have a stepped or level premium, if the benefit amount increases due to indexation, and the increased risk to insure you as you age.

What is life insurance?

To understand the cost of life insurance, it’s important to understand what life insurance is, what it can offer, and what exactly you’re buying (and what you are not)! Life insurance is a type of insurance that you can get as a means to protect the financial future of your whānau. If you were to pass away, your family can make a claim with your insurance company, who provide a lump sum payment. Some insurance providers, like New Zealand Seniors, may also provide the lump sum in advance if you’re diagnosed with a terminal illness with 24 months or less to live.

Your insurance payout can be used by your family however needed, such as to help with both short-term expenses like grief counselling, funeral costs and so on. It can also help with long-term financial obligations like the mortgage, rent, utility bills, and other day-to-day expenses.

It's important to remember that every policy offers benefits and exclusions, and you should weigh all your options before choosing a policy that suits your family’s needs. Keep in mind that cheap doesn’t always mean cost-effective, as everything you may want or need from your insurance policy may not be covered at a lower premium! So, be sure to do your research and choose a cover that provides you with value for your money.

Discover more: What is life insurance?

How much life insurance do seniors need?

Life insurance can be worth considering at any age, whether you are young or old, with the level of cover you need at any life stage potentially varying based on your personal situation.

To help you work out how much life insurance you need, have an honest discussion with your loved ones about paying off debts, managing the cost of living, as well as any unexpected expenses.

Here are a few things to keep in mind when working out the level of cover you would like to apply for:

Outstanding debts: Calculate any remaining mortgage, personal loans, or credit card debts.
Living expenses: Estimate your family's ongoing living expenses, including utilities, groceries, and other daily costs.
Future financial goals: Consider any future expenses, such as your partner's retirement, children's education, weddings, or the upcoming birth of your grandkids.
Funeral costs: Include the cost of your funeral and any other final expenses.
Savings and superannuation: Take into account your current savings and superannuation that can offset some of these costs.
Investments and assets: Do you have assets, dividends from investments, or any other source of income that can also offset costs for your family in the future?
Your health: Do you have a family history, or health warnings from your doctor that could eat into your savings account down the track?
Number of dependants: How many financial dependants rely on you, including your spouse, children, grandchildren, and even pets?

You may also want to speak with a financial advisor who can provide personalised advice based on your specific situation. They can help you narrow down the most suitable policy option to fit your needs and budget.

Discover more: Life insurance for seniors

Leaving your future to chance can be costly – see how life insurance can help

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Understanding how your life insurance premiums are calculated

Insurers assess various factors to determine how much your life insurance premium will work out to be initially. They may also re-evaluate the cost of the premium every year, keeping in line with any changes to fee charges as well as indexation of the benefit amount, whereby your benefit amount payable will increase and the premiums will be adjusted to reflect this.

This means that if you took out cover at the age of 50, your premiums could potentially be different when you reach the age of 70—depending on if your policy is a level or stepped premium.

Level premium: Your premium stays the same for the life of the policy.
Stepped premium: Your premium increases every year.

When you apply for a life insurance policy, your insurer will decide how much your policy premiums will cost based on the following factors:

Age: Unfortunately, the older we get, the more likely we are to experience an event that will lead to an insurance payout (like passing away). So usually, insurers set a maximum entry age for new policyholders, and they may adjust your premiums yearly, as you grow older.
Gender: You may be asked about your biological sex when you apply for life insurance as premiums could be adjusted based on any risk factors that relate to this. Be sure to read the Policy Document to see whether gender plays a part and if the product suits your individual needs.
Health and medical history: Your current health, medical history, family history, and any pre-existing conditions can impact your premiums. You may also be asked to have a medical exam or blood test to confirm your health. Every insurer has their own set of questions and criteria, for example, when you apply for Seniors Life Insurance, you’ll only be asked eight questions about your health over the phone – you won’t be asked to undergo any health checks.
Lifestyle: Depending on the insurer’s needs, your premiums may be adjusted according to any health risk factors in your life, such as your smoking status. Unsurprisingly, smokers can expect to pay a higher premium than non-smokers due to the known health risks of cigarettes. Participation in high-risk activities can increase premiums as well – these can be adventure hobbies like skydiving, bungy jumping, and rock climbing. This is where those good health decisions and sensible life choices you’ve been making can really pay off.
Occupation: Jobs that are considered high-risk can lead to higher premiums. For instance, helicopter pilot, aerial photographer, scuba diver, underground miner, offshore oil rig worker, explosives handler, and race car driver.
Amount of cover: Part of the reason it’s so important to choose a suitable cover amount is because the amount you choose will impact how much you pay in premiums. A higher cover amount means more financial assistance for your loved ones after you pass away, but a higher premium will apply, so you should make sure the cover amount you choose is suitable and that your premiums are manageable.

How can New Zealand Seniors help?

With New Zealand Seniors, you can tailor your policy to suit your individual needs and budget. Choose the level of cover you need, and rest assured knowing you’re backed by a respected and award-winning insurer.

Benefits of choosing Seniors Life Insurance

Flexible cover amount that suits you

Choose how much you or your family receive if you pass away or become terminally ill. You can set a benefit amount from $10,000 up to $200,000.

Easy to apply with no medicals

Simply answer eight questions about your medical history over the phone. Once approved, you can get covered in minutes.

Immediate cover

Once your policy is set up, you’ll be covered straight away for death by any cause, and for terminal illness¹ (excluding suicide for the first 13 months).

20% advance payout to cover funeral costs

When your family makes a claim, 20% of the benefit amount may be paid in advance, so they won’t have to worry about the cost of your funeral or other immediate expenses.

Triple payout for accidental death

Your family’s benefit amount will be tripled if you pass away from an accident, helping with any last-minute expenses they might face.

Your own personal claims specialist

If you or your family need to make a claim, we’ll assign you a dedicated claims specialist to look after everything. No need to explain things to multiple people.

We’ll keep your premiums manageable

Unlike some life insurance policies, your annual premium increase won’t be based on your age which will help with budgeting later in life. Plus, we offer lower starting premiums for non-smokers.

Cover for when you need it most

We know that the older you get, the more you have to protect, so Seniors Life Insurance allows you to apply from age 45 to 79, protecting you and your family until you turn 85.

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How to get life insurance

If you’re a New Zealand resident aged 45 to 79, the process is quite simple:

1 Request a quote

Answer eight questions about your health and we’ll get you a quote in minutes.
2 Choose your cover

Tailor your policy and choose the level of cover you need.
3 Get covered

Rest easy knowing the people you care about most are in safe hands.