Young adults: building your foundation (20s)

Your twenties are all about setting yourself up for success. While life insurance might not be top of mind when you're starting your career, it's actually the perfect time to lock in lower premiums. As a young, healthy adult, you'll typically qualify for better rates that you can maintain as you age.

By the numbers:

• 28% of Gen Z have life insurance

• Only 41% of Kiwis have life insurance

• 64% of Kiwis aged 30 and below feel confident in choosing an insurance policy

• The average student loan balance was $25,078 in 2022/23.

• 68% of Gen Z and Gen Y reported that financial issues adversely impacted their mental health in 2023

(Sources: Financial Services Council, 2024; Education Counts)

Key considerations at this stage:

• Income protection to safeguard your earning potential

• Debt coverage if you've got student loans and other forms of debt (eg BNPL)

• Basic life insurance to cover funeral costs and protect family members 

• Locking in lower premiums while you're young and healthy

Wondering how life insurance can benefit you in your 20s? Learn more about life insurance basics here.

Starting a family: protecting your growing nest (30s)

The arrival of little ones changes everything – including your life insurance needs. With dependents relying on your income, comprehensive coverage becomes crucial. Many Kiwi parents in their 30s are juggling mortgage payments with childcare costs, making this life stage particularly important for robust insurance protection.

By the numbers:

• In the last decade, the average mortgage for first-time home buyers has risen from around $300,000 to over $550,000.

• 40% of New Zealanders would be unable to access $5,000 without going into debt if something unexpected were to happen.

• Most employed New Zealanders have less than six months' worth of expenses saved, which poses a risk if the primary income earner becomes unable to work due to illness or injury.

• Only 22% of New Zealanders have trauma insurance, a critical form of protection if a serious health issue affects the primary earner.

(Sources: Financial Services Council, 2024; RNZ)

Key considerations at this stage:

• Higher coverage amounts to replace your income for your family

• Life insurance to cover specific periods (like until your children are independent)

• Trauma and income protection insurance

• Coverage for stay-at-home parents (their contribution has significant value too!)

Want to save on premiums while securing your family’s future? Stay tuned for our upcoming blog on how to save money on life insurance.

Home ownership: securing your biggest asset (40s)

Buying a home is a massive milestone for any Kiwi, and it usually comes with a substantial mortgage. Your life insurance strategy needs to account for this significant financial commitment to ensure your family can keep their home if something happens to you.

By the numbers:

• On average, women in their 40s have approximately $11,000 (or 32%) less KiwiSaver than men.

Key considerations at this stage::

• Mortgage protection coverage

• Additional life insurance to cover the length of your home loan

• Regular review of coverage as you pay down your mortgage

• Consideration of both partners' incomes and contributions

Not sure about your insurance options as a first-time home buyer? We've got you covered with our blog Rethinking Insurance for First-Time Home Buyers.

Empty nest and retirement planning (50s+)

As you approach retirement, your life insurance needs often shift from income replacement to legacy planning and final expenses. With children potentially independent and mortgages changing, you might adjust your coverage – but don't eliminate it entirely.

• On average, women in their 50s have approximately $17,000 (or 36%) less KiwiSaver than men

• The total mortgage debt for over 65s increased by 49% from $16.9 billion to $25.2 billion between June 2018 and June 2023.

• Mortgage holders in the 65-plus age group have an average mortgage debt of $185,294.

(Sources: Retirement Commission, Oneroof)

Key considerations at this stage::

• Life insurance for estate planning

• Coverage for remaining debts or mortgages

• Funeral expense coverage

• Estate planning 

• Protection for your spouse's retirement lifestyle

Could KiwiSaver help address New Zealand's underinsurance gap? Stay tuned for our upcoming blog on KiwiSaver and insurance.

How Quashed helps you, no matter your life stage

Life insurance needs to evolve as your life does—whether you're just starting out, buying a home, or preparing for retirement. Quashed makes it easy to compare policies in real-time and find coverage that fits your changing needs:

• Flexibility: Whether you're in your 20s, 30s, or 50s, Quashed lets you choose a cover amount that fits your stage in life.

• Real time comparisons: Compare two policies side by side with all the key details - costs, cover amounts, and benefits - to help you find the right option for your current needs.

• Perks made simple: 10% off for the first 12 months, 25% off a Les Mills membership, and discounts based on your health. These perks are offered by the insurers on the platform, and Quashed makes it easy to see them.

• Access to advice: If you’re unsure, you can easily book a free call with an expert to discuss your options and make sure you’re making the right choice for your life stage.

• Confidence: With clear, real-time quotes, Quashed helps you compare policies quickly and with confidence, ensuring you’re getting the right cover for your needs.

Why wait? Join over 45,000 Kiwis already saving time by comparing their insurance with Quashed. It’s free, easy, and quick—see how it works for you today!

FAQs

How much life insurance do I need at different stages of life?

The amount of cover depends on your financial obligations. For young adults, covering debts like student loans may suffice. For families, consider income replacement, childcare costs, and mortgage coverage. In retirement, focus on final expenses and legacy planning.

Can I change my life insurance as my needs evolve?

Yes! Many policies offer flexibility to adjust coverage as your life circumstances change, such as buying a home, having children, or nearing retirement.

What happens if I miss a premium payment?

Most insurers offer a grace period for missed payments. If you miss multiple payments, your policy might lapse. Always communicate with your insurer to explore payment options or reinstatement.

Why is life insurance cheaper when you’re younger?

Premiums are based on risk factors like age and health. Younger, healthier individuals pose lower risks to insurers, resulting in lower premiums.

How does Quashed compare to other platforms?

Quashed offers live, real-time insurance comparisons, unlike static platforms. You can instantly view up-to-date quotes, perks, and features from top NZ insurers. Want to see the full breakdown? Check out our detailed comparison with MoneyHub for more insights.