Protecting Your Loved Ones with Level Premium Life Insurance
While 95% of New Zealanders insure their cars, 4 in 5 aren’t covered for sickness or disability. Level premium life insurance offers a solution with stable, predictable premiums that won’t rise as you age, providing you with long-term financial peace of mind.
How Does Level Premium Life & Trauma Insurance Work?
With level premium life and trauma insurance, your premiums won’t increase with age. Although you may pay a bit more in the early years, this stability can lead to savings over time, especially when coverage is most critical in later life.
Most level premium policies end at a set for a term and common ages are 70, 75 or 80. One of the key advantages of level premium life/ trauma insurance is its financial certainty.
Should you pass away during the life policy term, your beneficiaries will receive a tax-free lump sum death benefit, ensuring their financial security.
With trauma cover, experiencing a severe heart attack entitles you to a tax-free lump sum. This payout provides financial relief, enabling you to focus on your recovery and health without the burden of worrying about expenses.
Combining Rate for Age and Level Premiums
You might be familiar with the idea of combining fixed and variable-rate home loans to balance your payments. Similarly, in the realm of life and trauma cover, blending ‘rate for age’ and ‘level’ premiums can offer a strategic approach to managing your policy costs over time.
Consider taking out part of your insurance using rate for age premiums while using level premiums for the rest. This ensures that your premium in the earlier years will be lower than if you opted entirely for level premiums.
Over time, as you build up more assets and potentially require less insurance, you can reduce your rate for age premium cover. This strategy allows for greater flexibility in your financial planning and ensures you are not overpaying for coverage you may no longer need.
This is why it is highly valuable to work with an insurance specialist like myself. I can meet with you to review your policies as your financial situation changes, helping you to adapt your coverage to fit your evolving needs.
Trauma Cover
We highly recommend trauma coverage, which can provide essential financial support for expenses such as your mortgage/ rent or living costs if you’re diagnosed with a specified medical condition, such as cancer, heart attack, or a stroke.
Recent AIA statistics show that trauma insurance plays a crucial role in providing financial protection. In 2023, $117.1 million was paid out in trauma claims, with cancer accounting for 61% of these claims. Breast cancer was the most common type of cancer claim, while heart-related conditions made up 17%, neurological issues 14%, and musculoskeletal conditions 6%. These figures highlight the importance of securing trauma cover early in life to ensure it’s available when you need it most.
While including trauma coverage in your level premiums may increase your payments, it offers significant peace of mind. By carefully evaluating your options and collaborating with our insurance adviser, we can find a personal insurance solution that meets your needs and aligns with your long-term financial goals.
Consider the story of a solo mother in her late 30s with two preschool-aged children who faced an unexpected challenge; a breast cancer diagnosis. With no family support and already living on a tight budget, the news was devastating. Fortunately, she had the foresight to secure $100,000 in trauma cover, which became a crucial financial lifeline during her time of need.
The payout allowed her to prioritise her health without the added stress of financial burdens. In New Zealand, 71 people are diagnosed with cancer every day, and breast cancer accounts for 33.4% of all cancer claims, highlighting the critical need for this safety net. With the funds from her trauma cover, she was now able to comfortably manage medical expenses, childcare, and daily living costs, enabling her to focus on her recovery. She expressed immense gratitude for the timely support, which alleviated her financial anxiety and provided peace of mind during a challenging and unpredictable period.
Get in touch with me today!
Life Insurance: A Safety Net in Times of Crisis
The possibility of needing life insurance is very real, especially when loved ones depend on your income for their well-being. Life insurance provides a crucial safety net, ensuring that your family is financially protected if you are no longer there to support them.
A person lost their partner in his early 40s, and as part of a blended family, the life insurance payout allowed them to buy out his share of their home, ensuring that his children would inherit his portion. Without this financial support, selling the house to cover expenses might have been necessary. Instead, the family home was preserved, providing stability for everyone during an incredibly challenging time.
In moments of crisis, having the right protection in place offers more than just financial security—it brings emotional peace of mind, allowing you to focus on what truly matters: health, family, and healing.
As your trusted Insurance Adviser, I can help you find the right cover for your specific situation. Give me a call today!
