Understanding what drives your premium costs

Before diving into money-saving strategies, it's worth knowing what influences your life insurance costs in New Zealand. Think of it like your Trade Me feedback score – various factors contribute to the final picture. Age, health status, occupation, and lifestyle choices all play crucial roles in determining your premiums. For instance, a 35-year-old software developer in Wellington might pay significantly different rates than a 45-year-old construction worker in Auckland.

Smart strategies to reduce your premiums

1. Become a bundle master

Just as combining your broadband and mobile plan can save you money, bundling your insurance policies often leads to substantial discounts. Many New Zealand insurers offer multi-policy discounts when you combine life insurance with health, income protection, or trauma coverage.

However, bundling doesn't always guarantee the lowest price. A detailed analysis by Quashed highlights that while bundling simplifies management, individual policies from different providers may sometimes be more cost-effective.

2. Health is wealth (literally)

Here's a motivating thought: improving your health doesn't just make you feel better – it can actually reduce your insurance premiums. Insurance providers often reward healthy lifestyles with better rates. Consider these steps:

• Quit smoking (smokers typically pay 50-100% more in premiums)

• Maintain a healthy BMI

• Manage pre-existing conditions

• Regular exercise and healthy eating habits

For example, non-smokers often receive significantly better rates, and some insurers, like AIA, offer wellness discounts through programs like AIA Vitality.

3. Choose coverage that fits like your favourite jandals

One size doesn't fit all when it comes to life insurance. Your coverage should align with your life stage and circumstances. A young family in Hamilton might need different coverage than an empty-nester in Christchurch. Review these aspects:

• Coverage amount based on current needs

• Policy riders and additional benefits

Regular policy reviews ensure your insurance evolves with your life changes. Financial advisors recommend annual reviews to align your coverage with milestones like marriage, purchasing a home, or having children.

4. Time your purchase right

Like booking flights to the Gold Coast, timing matters with life insurance. Generally, the younger and healthier you are when you purchase coverage, the lower your premiums will be. If you're still figuring out what life insurance is and whether you need it, check out our blog on what life insurance is and whether you need it.

5. Payment strategy matters

Small tweaks to how you pay can lead to surprising savings:

• Annual payments often come with discounts compared to monthly payments

• Setting up automatic payments can qualify you for additional discounts

• Some insurers offer lower rates for paying through specific methods

What really drives life insurance costs, and how can you use that knowledge to save money? Check out our blog on the cost of life insurance in NZ and what to expect for all the details.

How Quashed makes finding life insurance simple

Finding life insurance used to feel like assembling flat-pack furniture without instructions—frustrating and time-consuming. Quashed simplifies the process by:

• Letting you compare policies side-by-side from leading insurers.

• Providing real-time pricing and coverage details, so you can confidently choose the best option for your needs.

• Highlighting extra perks, like gym discounts, and offering smart tools to guide you through your decision-making journey.

Ready to get better life insurance rates? Sign up today to compare policies and find coverage that fits your budget and needs.

FAQs

How can I reduce my life insurance premiums in NZ?

You can reduce your premiums by making small lifestyle changes, such as quitting smoking, maintaining a healthy weight, and staying active. Bundling policies, paying annually, and using comparison tools like Quashed to find affordable coverage can also help you save.

What is the cheapest life insurance option in NZ?

The cheapest option depends on your age, health, and coverage needs. Comparing policies side-by-side using platforms like Quashed allows you to find affordable life insurance tailored to your situation.

How does age affect life insurance costs in New Zealand?

Your age significantly impacts your premiums. Generally, the younger you are when you purchase a policy, the lower your costs. It’s worth locking in coverage early to save money in the long run.

Are there any life insurance discounts in New Zealand?

Yes, some insurers offer discounts for healthy lifestyles, bundling policies, or paying annually. Some providers also reward you with perks, like gym memberships.

Can I switch life insurance policies to save money?

Absolutely! If your needs or circumstances have changed, it’s worth reviewing your policy. Quashed makes it easy to compare options and switch to a more affordable provider.

How does smoking impact life insurance premiums?

Smokers often pay 50-100% more for life insurance due to higher health risks. Quitting can lower your premiums. Learn more in our blog on Life Insurance for Smokers.