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Common Life Insurance Myths: Separating Fact from Fiction

Life insurance is a vital financial tool that provides protection and peace of mind to individuals and families. However, navigating the world of life insurance can be overwhelming, especially with the prevalence of myths and misconceptions. In this blog post, we aim to debunk these myths and provide clarity to New Zealanders, empowering them to make informed decisions about their insurance needs.

Myth vs Fact: Debunking Common Misconceptions

Myth 1: Life Insurance is Expensive Fact: While the cost of premiums may vary depending on age, sex and smoking status to name a few, life insurance can be affordable. Many policies offer discounts and other ways to keep the premiums down and competitive rates tailored to individual budgets. At NZ Advice Group we can assist in finding the best amount of cover for a fixed budget. Ask us how to make your premiums remain the same each year.

Myth 2: Medical Exams Are Mandatory and Invasive Fact: While medical underwriting is common practice, not all policies require a medical exam. Modern underwriting processes have become more streamlined, making the application process simpler and more accessible. With “e-apps” our advisers can now do applications with you over the phone, so you can apply for cover anywhere you want!

Myth 3: "I don't need life insurance, I'm healthy" Fact: This misconception can be costly in the long run. Taking out insurance cover when you're healthy is crucial as it can prevent future complications. Not taking out the cover early can lead to pre-existing condition loadings or exclusions, making the cover more expensive later on or even being told you are unable to get cover at all.

Myth 4: Life Insurance is Only for Families Fact: Life insurance is not exclusively for those with dependents. Individuals of all ages and life stages can benefit from coverage as part of their overall financial plan, providing protection for final expenses, outstanding debts, and estate planning needs.

Myth 5: Life Insurance Is Complicated and Confusing Fact: With the help of a trusted adviser, navigating life insurance can be straightforward. Our Insurance advisers offer personalized guidance and expert advice to simplify the process and ensure clients have a clear understanding of their coverage options. Reach out to our team today to have a chat about your insurance.

Call us for a review of your cover. 0800 230 235