While New Zealand feels relatively safe, tucked down at the bottom of the world, we all have to be aware of what’s happening with the rest of the planet. The last three years have taught us that global health challenges certainly know how to find us.
Death rates are rising
In recent years, death rates have increased around the world. The rise in mortality is attributed to aging populations, increasing levels of chronic diseases and the spread of infectious diseases – Covid-19 and Monkey Pox being the latest examples. (1)
This trend is echoed in New Zealand. After a fall in mortality rates during the pandemic, more Kiwis are dying than ever before. Data analysing company Melville Jessup Weaver Ltd says “the latest Statistics New Zealand data (for the period ended 12 June 2022) shows that about 36,000 Kiwis died over the preceding year – the highest on record”.
Two out of three deaths (Maori and non-Maori) in New Zealand are people aged 75 years or older (64%). (2) So for every two older New Zealanders dying, there is one younger person. From our customer base, which includes a range of ethnic backgrounds, we know that most of our clients aged 35 to 55, or even older, have financial dependants – and that’s where the argument for having life cover comes in.
Causes of premature death in New Zealand
Health.govt.nz: Major causes of death, ranked by age-standardised mortality rates, Māori and non-Māori, 50 to 64 years
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Māori |
non-Māori |
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Males |
Ischaemic heart disease |
Ischaemic heart disease |
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Lung cancer |
Lung cancer |
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Diabetes |
Colorectal cancer |
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Other forms of heart disease |
Stroke |
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Chronic obstructive pulmonary disease |
Suicide and self-inflicted injury |
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Females |
Lung cancer |
Breast cancer |
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Ischaemic heart disease |
Lung cancer |
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Breast cancer |
Colorectal cancer |
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Diabetes |
Ischaemic heart disease |
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Chronic obstructive pulmonary disease |
Stroke |
Life cover helps if you die prematurely
Growing old and dying is a natural process. However, premature death is different. Most premature deaths are caused by chronic diseases, such as ischaemic heart disease, lung cancer, diabetes, breast cancer and chronic obstructive pulmonary disease. A smaller proportion of premature deaths are caused by accidents.
If you’re wondering ‘do I need life cover?’ remember that not everyone makes it to old age (only about two thirds, according to the stats mentioned above). Life cover is designed to look after the people you leave behind if you die too soon. It pays a lump sum that can be used to support the future financial wellbeing of your partner, children or other loved ones that depend on you.
Life cover can also help before you die. With some policies, you can receive a percentage of your cover amount for a terminal illness diagnosis. And most policies will pay out the full amount if you’re given less than 12 months to live. It means you can be involved with supporting your family’s future by paying off debt and investing. And you could also use some of the money for special experiences with your family before you go.
Why have life insurance?
Depending on the type of cover you have, life insurance offers these benefits:
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Income replacement if sickness or injury prevents you from working
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A lump sum payment if you’re diagnosed with a critical illness (as defined in your policy)
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Help with home loan repayments if you’re unable to work due to sickness or injury
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A lump sum payment for family or loved ones (named in your policy) if you die prematurely
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A lump sum payment if you become totally disabled and unable to every work again
Ensure your life cover fits your family’s future needs
Like any financial product, life cover needs to be tailored to your situation. Understanding the benefits of life cover and working out how much to get are easier when you work with an Apex Advice adviser.
We partner with multiple providers, so you can choose a policy that feels good for you and most importantly the policy is set up correctly, so that the money goes into the right hands without delay. If you already have a life cover policy, a regular review can ensure it’s in step with the changing needs of your family and still affordable for you.
