What is term life insurance and do I need it?

Life insurance can help to reduce the financial burden on your family should you become terminally ill or pass away. 

If you’re wondering if it’s for you, a good place to start is by learning what life insurance is about. Term life insurance is one kind available, and it may be a good option for someone wanting cover for a term or period of time, usually until you reach a certain age or for a set number of years. 

Let’s take a closer look at what term life insurance is, which benefits it offers, and how to decide if it’s a good option for your needs. 

What is term life insurance? 

Term life insurance is a type of policy that covers you over a specified time frame – usually a set number of years or until you reach a certain age. Should you become terminally ill or pass away within that time frame, you (or your family) would receive the payout. 

As you get older your needs change, along with the types of insurance that you can apply for. Term life insurance is designed to help make sure your family is financially protected, at a time when it’s needed most.

The benefits of term life insurance

Term life insurance offers a bouquet of benefits that make it quite the appealing option to many of us.

For one thing, with New Zealand Seniors, you can apply for term life insurance all the way up to age 79. So even if you haven’t got around to it yet, if you’re between 45 and 79 it’s not too late to apply. 

It’s also very flexible. You can choose a benefit amount from $10,000 up to $100,000 with New Zealand Seniors Term Life Insurance, so you can tailor your benefit amount to suit your needs.

A term life insurance policy is also a simple approach to life insurance. It may be easy to understand, and to set up. And when you set up a policy with New Zealand Seniors, you can request a quote and apply by answering eight simple questions. Once approved you can get covered in minutes. 

How to decide if it’s right for you

Here are some things to consider when deciding if term life insurance is suitable for you:

  • Would your family be impacted if you’re no longer able to provide for them?
  • Would you have enough savings to cover medical expenses if you were diagnosed with a terminal illness? 
  • Do you have debt that you don’t want your family to worry about (like a mortgage)?
  • Are you currently or planning to be looking after your grandchildren to help family save on childcare costs, and what would happen if you weren’t able to do that?
  • Do you need to ensure your family is taken care of financially should the worst happen in the next years during the term of the policy?

With Seniors Term Life Insurance, there are no blood tests, medical assessments, or forms to apply. Just answer eight questions about your health over the phone, and once approved you can relax knowing you will still be looking after your family when you’re gone. 

Get in touch with our friendly team any weekday between 8am and 8pm to find out more or get started.