Life and living insurance
How life and living insurance works
Life insurance acts as a financial safety net, giving you peace of mind that your loved ones can have the financial support they need if you pass away. A lump sum of money is paid if you die or are diagnosed as terminally ill and are expected to die within 12 months.
Living insurance has two key areas of cover that can help to protect your lifestyle:
- Serious Illness Trauma - cover if you're diagnosed with a medical condition specifically defined in the policy, such as severe cancer or a major heart attack
- Income Protection Illness - cover if you're unable to work because of illness where you were previously working at least 25 hours per week for a single employer.
Funeral Expenses cover is included with both life and living insurance. This pays a $15,000 lump sum to help with funeral costs if you die, or are diagnosed with a terminal illness and are expected to die within the next 12 months.
Why life and living insurance is worth it
Life and living insurance is something you may wish to consider if there are people in your life depending on you for everyday living expenses, mortgage/rent payments, or retirement income. If you depend on a partner for help as a stay-at-home parent you may wish to consider insuring them as it can be expensive to cover costs such as childcare, transportation or house upkeep, should something happen to them.
As well as reducing the financial burden, life and living insurance can also give you peace of mind by knowing you’re protected from the unexpected. The payment you receive from your cover can be used for anything; it could help pay off debts, cover additional costs like a caregiver to help if you’re terminally ill, or even pay for a last family holiday.
What will it cost me if I'm uninsured?
It can be hard to imagine life changing, but it's worth thinking about how your family would manage financially if the unexpected happened, such as if you passed away or couldn't work because of illness.
The cost of not having life and living insurance depends on whether there would be enough money to cover your expenses such as:
- Living costs - day-to-day expenses such as food, transport, bills, and home maintenance,
- Existing debts - such as your mortgage, credit cards, and business or personal loans,
- Funeral costs,
- Childcare costs,
- Financial responsibilities for your business
Find the right cover for your needs
As your needs and lifestyle change, it is important to reassess the amount of life and living insurance you have and to make sure you have the right level of cover in place. For example, if your kids have grown up and you’ve paid off your mortgage, you may want to focus on other areas such as funeral expenses or other outstanding debt.
It’s also important to remember that if you pass away with debt, your debts, including funeral costs, might be passed on to your estate if you don’t have life insurance or savings to cover them.
Take a look at some examples where different types and levels of cover could help with your needs. These examples are general in nature, don’t take personal circumstances into account and should not be relied on.
Life and living insurance
Your situation: You're starting a family or have young children
Your life insurance need: Peace of mind that your family will have the financial support they need if you pass away
Your living insurance need: Security knowing some of your income is covered should you be unable to work for a long period of time due to a serious illness
Life insurance with some living insurance
Your situation: You have older children and a mortgage
Your life insurance need: Confidence that your mortgage and any final expenses will be covered if you die, and your partner will have the funds to support them
Your living insurance need: Assurance that you'll be able to continue your mortgage repayments if you're unable to work
Living insurance only
Your situation: No one depends on you financially
Your life insurance need: You don't have any debts that need to be covered
Your living insurance need: Reassurance that you can protect your lifestyle, as some of your income will be covered if you can’t work anymore and your funeral costs will be covered if you die
Talk with our life and living experts to help you work out how you could cover your personal circumstances and needs, and what amount of cover may be right for you.
Here’s why life and living insurance with nib is a great choice for you
Complimentary funeral cover
$15,000 to help with funeral costs if you pass away or are diagnosed as terminally ill and are expected to die within 12 months.
Your lifestyle, your choice
You choose the cover that suits your needs and lifestyle: Life, Income Protection Illness, Serious Illness Trauma, or a combination.
Our members come first
We help our members navigate their health and wellbeing journey.
* Important things to know
- Only the main features and benefits of the Life & Living Insurance and Temporary Accidental Death Cover are outlined here. For a full explanation of all benefits, exclusions and other terms and conditions of the cover, view the Policy documents:
- Stand down periods apply to all Living Insurance covers (Serious Illness Trauma cover or Income Protection Illness cover). This means you may not be able to claim immediately. The amount of time you have to wait will depend on details like the cover you have, what you want to claim for and if you have recently upgraded your plan.
- Life & Living Insurance is provided by nib nz insurance limited (trading as “Kiwi Insure”) and is a related company of nib nz limited (“nib”). Kiwi Insure issues and underwrites Life & Living Insurance products, and is solely responsible for claims under the cover. nib sells and may advise you on these products. Find out more about financial strength and financial advice with nib