Life insurance for seniors

Even if you don’t have any dependents and aren’t too worried about your debts being paid off after you pass away, you still need to consider how you’re going to manage your twilight years. For example, on top of everyday living expenses, consider how a terminal illness might impact your budget. With the median weekly spend of single adult Kiwis being $645, adding the cost of palliative care to this could make budgeting difficult without an ongoing income.

With basic living expenses averaging $1,349 per week for Kiwi households, having household income halved due to your sudden passing could leave your partner with unexpected financial stress. If you have a mortgage, consider how much your partner could pay if they were on their own.

If you passed suddenly, how long would it take your family to recover some financial stability? Even if you aren’t the main provider, you need to consider what else you offer your family that would impact them financially, such as childcare arrangements. When working out the amount of cover your loved ones will need, consider both their weekly living expenses as well as any long-term plans you have for your dependent children and grandchildren.

During the 2021 financial year, cost-of-living rose 4.0% on average across all Kiwi households, so it’s important to keep inflation and cost-of-living in mind when reviewing your financial needs. The amount of cover you’ll need should factor in long-term expenses such as any outstanding mortgage, as well as immediate costs that your partner would face without you such as downsizing or planning your funeral. If you’re old enough to access your superannuation, you should factor this in also.