Kiwi Life Insurance Apathy Continues

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Car, home and contents insurance are prioritised by Kiwis over life insurance, a new survey has found.

Half of Kiwis said they have life insurance cover (51%) in a recent survey by online marketplace platform Trade Me.

This percentage was the same in 2014, when Trade Me ran a similar survey.

The survey found that out of the total respondents:

  • 88% held vehicle insurance
  • 74% held home and contents insurance
  • 51% held life insurance
  • 41% held health insurance

A survey by the Commission for Financial Capability earlier this year also found that under half of Kiwis had a life insurance policy in place (see: Nearly Half of Kiwis Turn to Own Judgement…).

Trade Me’s Head of Insurance, Jaime Monaghan, says Kiwis were telling them that life insurance isn’t important.

“Twenty percent of our survey respondents said life insurance isn’t important to them and that compares to just four percent for vehicle insurance and five percent for home and contents,” Monaghan said.

“While it’s definitely important to have insurance for your large assets, we’d argue the greatest asset you have is you and your ability to earn money for you and your family.”

She said it’s a conversation Kiwis are reluctant to think about, adding, “…we’re concerned that too many New Zealanders simply don’t want to think about the what ifs but if something unexpected happened to your partner or loved one for example, would you have enough money to get by?”

A common misconception is that life insurance is really expensive, she explained, which is probably why so many Kiwis haven’t looked into it.

But she said they need to realise that there are a range of options for every budget.

“For example, a 35 year old male, non-smoker with no pre-existing medical conditions can get life cover of $500,000 from around $7.60 a week.”

The Trade Me survey involved 1,000 New Zealanders aged 18-65.