Critical illness insurance would also pay a lump sum that could be used for living or treatment. You don't want to work until the day you die.
Insurance on your partner is also important, in case you need to stop working to look after the family.
It turns out that two thirds of Kiwis have never had a proper conversation about life insurance, according to insurer AIA. That caught my attention as a consumer.
Sure, life insurance companies and advisers want to line their pockets a bit. Even so, there are very good reasons why we ought to be having those conversations. When I checked Givealittle this week, several of the "trending" pleas needn't have gone cap in hand if they'd had appropriate insurance. Some can't afford it. Plenty can, but never had that conversation.
Insurance industry consultant Russell Hutchinson, of Chatswood Consulting, says discussing life insurance is uncomfortable and as humans we lean towards comfort. That makes us avoid the conversation or seek answers that fit what we want to hear.
"One of the (uncomfortable truths) is the ugly reality that these things happen. I think at the back of our minds we know that they happen," he says. Yet most of us manage to live our lives as if it's never going to happen to us.
We also don't like the idea of paying money month in month out for something that we might not use. But then we might.
It's best to have those conversations with an adviser who can ask those difficult questions, knows more, and can actually help you take some action, says Hutchinson.
He doesn't blame people for not having that conversation. The industry is responsible as well, he says. It's a challenge to the industry to try and make it easier, cheaper, more interesting and more socially acceptable to have the conversation and do the planning.
Financial advisers will also look at other insurances suitable in your situation. Hutchinson says around 80 per cent of working New Zealanders don't have income protection insurance.
Many assume that ACC will cover them if they become incapacitated. The truth is you're statistically more likely to find yourself unable to work through illness than an accident. One of the trending Givealittle causes this week was in exactly that situation.
"It's another aspect of discomfort about talking (about life and death)," says Hutchinson. "The reality is one might get sick. There are lots of articles about people who have got cancer and there's a chance that this really expensive drug might help, but it's not funded by Pharmac. If they'd been (insured) then maybe they could have afforded it."
If you're reading this on Waitangi Weekend knowing that you'd be in the brown sticky stuff if you, or a loved one died or became very ill, then it's time to take action.
Or if you have insurance, but haven't looked at it for a long period of time, you might want to check that it still covers your needs. Best to get professional advice in that situation so you don't fall back into the echo chamber.
You'll also find some good guides about insurance yourself, and protecting your assets at Sorted.org.nz/guides/protecting-wealth.
