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How Does Life Insurance Work?

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Your golden years are golden for a reason. After all your hard work, this is your time to finally take a step back and enjoy the life you’ve built.

But while retirement allows you to live in the here and now, it doesn’t stop you planning for the future. You may be making plans for how you’d like to spend your retirement – whether that’s exploring hobbies, chasing a passion, or simply spending time with loved ones. Or you might be thinking about planning for your family’s financial future – in case you’re no longer around. And that’s where life insurance can help you.

How Does Life Insurance Work?

Golden Life Insurance is a type of insurance policy specifically designed for New Zealanders aged 40 – 80. It provides a lump sum payout to your nominated beneficiaries or your estate after you pass away. With a Golden Life Insurance policy, you can choose to pay your regular premiums either fortnightly or monthly. The cash payout you leave your loved ones can be used to cover end-of-life expenses, outstanding debts or even just for day-to-day costs. This could ease their financial burden during a difficult time.

Do I Need Life Insurance? 

As we get older, it’s natural to worry about the future, and the future of our loved ones in particular. While it’s difficult to imagine a time when we can’t be there for the people we love, planning for that future could make all the difference when the time comes. If you’d like peace of mind that your loved ones will have some financial support when you’re gone, life insurance could be right for you.

However, we all have different needs. As with any financial decision, it's important to consider your unique situation before you take out a policy. You might ask yourself…

  • Will your future estate include any outstanding bills, or debts such as car or mortgage repayments?
  • Will your loved ones be financially stable without you?
  • Can your loved ones afford your end-of-life expenses, like the cost of a funeral?

It’s important you consider your individual circumstances and make your own decision on whether life insurance is suitable for you. If you’re unsure, you could consider seeking professional financial advice.

How Much Cover Do I need?

Depending on your age and personal circumstances, with Golden Life Insurance you could secure a benefit amount of between $10,000 to $250,000.1 However, the benefit amount that’s right for you will depend on your own unique circumstances. Before taking out life insurance, you should consider…

  • Your needs – what type of living standards will your family need to maintain? How much do your bills cost each month? Do you still have a mortgage? Will you be paying for your children’s or grandchildren’s education?
  • Your budget – it’s important to choose a premium you can afford, as you’ll need to keep up with payments to ensure your cover stays in place. There are a few different factors that decide your premium, but generally the higher your benefit amount, the more you’ll need to pay each fortnight or month for your policy.
  • Policy terms – before signing up to a new policy, you should read the Policy Document to ensure you fully understand the policy terms and conditions. Consider the sum insured, premiums and any waiting periods or exclusions.  Our friendly team of specialists can help with any questions you might have about this.
  • Beneficiaries – this means the person or people who’ll receive your benefit amount when you pass away. If you have someone in mind, it might be a good time to think about how much financial support they will need when the time comes.
  • Inflation – consider whether the benefit amount you take out now will be enough to cover your outstanding financial commitments when the time comes. With Golden Life Insurance, your policy includes an Automatic Benefit Amount Increase feature. With this feature, your benefit amount will increase each year on the policy anniversary by 3% of your chosen benefit amount that you select at the time of your application. This can help to maintain the value of your cover over time and offset some of the potential impact of inflation on your policy. You can choose to opt out of this feature at any time.

How Much Does It Cost?

The cost of your policy will depend on a variety of factors. Our specialist team can help you figure out a premium that works for you. Here are a few things that we’ll take into account…

  • Your age – generally, the younger you are when you start your policy, the lower your payments will be to begin with. With Golden Life Insurance, your premiums will be recalculated based upon your age and your benefit amount each year. This means your premiums will generally increase as you get older. Your premium will also increase with the Automatic Benefit Amount Increase feature mentioned above, unless you opt out of this feature. Either way, you’ll receive a notice from us each year before the next increase on your policy anniversary.
  • Your answers to our Health and Lifestyle questionnaire - depending on your disclosures, we may charge a higher premium.
  • Your benefit amount – the higher your benefit amount overall, the higher your premium payments will be.
  • Your gender – women often pay lower rates due to longer life expectancy.
  • Smoker status – if you’re a non-smoker, you can look forward to lower premiums with Golden Life Insurance.2

We explain more about how much a Golden Life Insurance policy may cost in our helpful guide here.

When Should I Take It Out?

It’s never too early to think about life insurance – in fact, the earlier you apply, the more likely you are to secure a higher benefit amount. And since you can never know what’s around the corner, it may pay to think about taking out life insurance sooner rather than later. If you’re a New Zealand resident aged 40-80, you can apply for Golden Life Insurance today. You can arrange everything in just  minutes over the phone.

How Long Does The Policy Last?

A Golden Life Insurance policy lasts for your lifetime, as long as your premiums are paid up to date. This means you're covered until you pass away, at which point your loved ones can make a claim to receive the benefit amount you’ve put in place.

What are the benefits of Golden Life Insurance?

Here are some benefits of choosing a Golden Life Insurance policy…

  • Cash payout up to $250,0001 depending on your age and personal circumstances
  • Immediate cover from day one3
  • 100% early payout for terminal illness4
  • Easy application
  • Straightforward claims process
  • Lower premiums for non-smokers2
  • Pay fortnightly or monthly
  • Exclusive – you can’t buy it anywhere else
  • Free Will Kit when you take out a policy

Get in touch

Our dedicated team of specialists are on hand to answer any questions you might have and to help you get your policy sorted. If you’re ready to find out more, give us a call on 0800 110 038, Monday to Friday from 10am - 6pm, excluding public holidays.

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1

From $10,000 up to $250,000 of cover available (depending on your age and personal circumstances when you apply). The benefit amount will not be paid if you die or are diagnosed with a Terminal Illness4 as a result of an intentional self-inflicted injury or attempted suicide that occurred before the policy commencement date or within the first 13 months of the policy commencement date. A waiting period may also apply during which the benefit amount will only be paid if you die due to an accident. Refer to the Policy Document for full details.

2

Premiums for a non-smoker are lower than for a smoker of the same age and gender, with the same benefit amount and accepted at standard premium rates. Golden Life Insurance is an insurance policy and not a savings plan which means if your policy is cancelled, you will not get anything back (unless it is cancelled within the cooling off period). The total premiums you pay over the life of the policy could also be more than the benefits we pay out.

3

Depending on your health when you apply.  The benefit amount will not be paid if you die or are diagnosed with a Terminal Illness4 as a result of an intentional self-inflicted injury or attempted suicide that occurred before the policy commencement date or within the first 13 months of the policy commencement date. Depending on your health, a waiting period may also apply during which the benefit amount will only be paid if you die due to an accident. Refer to the Policy Document for full details.

4

Terminal Illness is as defined in the Policy Document, and will not be paid during a waiting period should one apply. Upon payment of a Terminal Illness claim, the policy and cover will end.