Majority of Kiwis Not Looking to Obtain Life Cover

Research carried out by Partners Life reveals that more than half the adult population has little interest in getting life insurance. According to a survey of more than 1,000 people it commissioned, 58% said they are not likely to get life insurance and 9% believed ACC will cover them.

This apparent confusion over the government’s ACC scheme is worrying, says Partners Life MD Naomi Ballantyne.

“Misconceptions around what ACC covers New Zealanders for are particularly worrying as people are not aware of the risk they are causing themselves by not getting insured,” she says.

“One of the biggest misconceptions when it comes to life insurance is that it is only something financially comfortable people should think about.”

The survey also found that younger New Zealanders are increasingly misinformed about ACC, not knowing that it doesn’t protect them for things such as illness or unexplained pain.

According to the survey, 38% of 18-24-year-olds mistakenly believe the no-fault accidental injury compensation scheme has them covered for time off work due to a critical illness, such as a cancer diagnosis.

More than half (51%) of those in the same age bracket believe accidents are the leading cause of death in New Zealand, when in reality it is cancer.

Other reasons given for not obtaining cover were that:

• 54% said it was too expensive
• 17% believed they are too young to need it
• 15% do not see any benefit
• 13% have no assets

Partners Life Chief Marketing Officer, Kris Ballantyne says it’s vital Kiwis are educated on how insurance works and ensure they understand the risk involved of going without insurance.

*A sample of 1,007 New Zealanders were surveyed by research agency Pureprofile in August 2022.