Why we should normalise talking about life insurance

When you’re sitting down to dinner with your family or hosting a backyard BBQ for your friends, the last thing you’ll probably talk about is life insurance. Car insurance might make the list of conversation topics if you’ve had a ding recently, and maybe house insurance might come up if you experienced losses from the flooding earlier this year. 

But life insurance? That’s a topic that many people tend to steer clear of, either because they don’t know enough about it or it’s something they know they should have but they’ve just never gotten around to it.

Here’s why we need to make life insurance a normal conversation topic in New Zealand.

1. We can all learn from each other

Kiwis tend to be pretty pragmatic and go it alone where possible. However, with something as complex as life insurance, it’s impossible to get the right cover for you and your family without knowing how it works. Obviously, there’s something to be said for including a professional financial adviser to help you get it right, but in the first instance, start talking to your family and friends to see how they’ve done it.

Every situation is unique, so what’s right for them might not be right for you, but having someone you trust explain it to you can make a world of difference. And if you both aren’t sure of the answer, getting advice from the professionals is something you can do together.

2. We can help keep each other protected

New Zealanders as a whole are pretty underinsured compared to the rest of the world. In fact, 70% of New Zealanders are currently underinsured, meaning that should the worst happen, they might not be in a position to get through it unscathed. Sure, New Zealand has a fairly accessible public health system, but as we all know, you can’t rely solely on that.

If we talked more about life insurance and made it a normal topic of discussion, we could all learn more and take steps to protect ourselves and our families. This would mean higher rates of cover for New Zealanders and less financial strain on our people.

3. We can better plan for the future

No one wants to think about the worst-case scenario, but it’s important to have those conversations with your family and friends so you can plan for your future accordingly. Instead of avoiding uncomfortable topics like the plague, have an open and honest conversation about what you or your friends would do if xyz happened.

If, God forbid, you had an accident and passed away, what would your family do? Would there be enough money to cover the funeral expenses? What would their new financial reality look like? You might find that one of your friends has saved up enough money for this exact possibility, which is fantastic, but you might not have time to do the same thing. One of your other friends might have life cover, but do they know what it actually includes and what their family would need to know should they need to claim on that policy?

These are all important questions to ask, and if you don’t feel comfortable talking to your friends and family about life insurance yet, that’s okay. But do take action and have a conversation with a professional you trust. Financial advisers are a great place to start, and a few, like Group Plus, don’t charge you a fee for sitting down and having a chat about your cover.

If you want to talk about your existing life cover or if you want to know more before you make a decision, reach out to us today.