Reluctance to consider a worst-case scenario is one of the reasons so few New Zealanders have life insurance, an industry executive believes.
Mark Savage, General Manager of AA Life, says "sadly" sometimes the worst does happen: "There is enormous value in knowing that you will be protecting those who would be left behind if it does."
His comments follow a recent Financial Services Council of New Zealand (FSC) report showing only 23 per cent of New Zealanders have life insurance, even though 80 per cent are aware of what it is.
Every day the New Zealand life insurance industry pays out $3.3 million in claims* supporting those whose lives have been turned upside down by tragedy.
Savage says more New Zealanders lives are typified by endless busyness, and life insurance can be one of those things that get relegated to the "to do" pile.
He says AA Life, regularly voted as one of New Zealand's "trusted insurance brands"+, is a great option for those wanting to put a safety net in place for their family.
"There is simple and direct cover, an easy online application process that only takes a few minutes, no medical checks on application and up to $1 million worth of cover," says Savage.
AA Life policy holders decide on a dollar amount that they would like to be covered for. The higher the cover, the higher the premium, so you need to weigh up exactly what you feel would be a suitable figure for your family's needs.
Savage says AA Life is a very trusted brand, and the products and services offered have a proven track record. If the worst happens and a loved one passes away, the full cover amount is paid to the beneficiaries of the policy.
Those left behind after a loved one's death can use the insurance payout to take care of day-to-day expenses such as mortgage repayments, children's education, or other loans.
"A stay-at-home parent, for example, won't have to worry about going to work at an extremely difficult time of their life as the insurance can cover their costs for a few years," says Savage.
While there are some exclusions that may apply based on an individual's circumstances, most people are eligible for simple life insurance. People only need provide a small amount of information (date of birth and whether you are a smoker or vaper for example) and a quick quote will be generated.
Savage says AA Life is committed to making the entire process simple, seamless and unthreatening. People can even save their online application and come back to it later through the AA Life call centre or an AA Centre Network branch.
"We are committed to making it easier for people to get life insurance," he says. "We don't want people to be put off because they think it's going to take too much effort. It's too important for that."
For more information about AA Life Insurance and details of their current $100 Prezzy# card promotion, visit aa.co.nz/fun
*Towards Prosperity Research – www.fsc.org.nz
+ AA Life has been voted as Most Trusted in the Life Insurance category on Reader's Digest Trusted Brand survey from 2013-2018 and Highly Commended in 2019.# Offer ends 10 November 2019. T's and C's apply.