Young adults: building your foundation (20s)

Your twenties are all about laying the groundwork for your future. While life insurance might not seem like a priority when you’re kick-starting your career, it’s actually the best time to lock in lower premiums. As a young, healthy adult, you’re likely to qualify for competitive rates that stay with you 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 under feel confident choosing an insurance policy.

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

• 68% of Gen Z and Gen Y reported financial issues impacting 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 (e.g., BNPL).

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

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

Want to learn more about the benefits of life insurance for young adults in New Zealand? Learn more about the basics in our guide.

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

As you move through your 20s and step into your 30s, life often becomes more complex. From building your career to growing your family, your priorities—and your insurance needs—start to shift. Let’s explore what you should consider during this exciting yet demanding stage of life.

The arrival of little ones changes everything, including your life insurance needs. With dependants 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 homebuyers 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, posing 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!).

Looking for the best life insurance for young families in New Zealand? Read our blog on how to save money on life insurance.

Home ownership: securing your biggest asset (40s)

As your family grows, so do your financial responsibilities—especially when it comes to buying a home. Let’s look at how life insurance can protect your most valuable asset in your 40s.

Buying a home is a massive milestone for any Kiwi, and it usually comes with a substantial mortgage. Your life insurance strategy should cover this major financial commitment, ensuring your family can stay in their home if the unexpected happens.

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.

Curious about how much life insurance might cost you? Check out our blog on the cost of life insurance in NZ for practical insights and tips.

Empty nest and retirement planning (60s+)

As you move into your 60s and beyond, your priorities shift from raising children and paying off mortgages to ensuring a lasting legacy and covering final expenses.

As you approach retirement, your life insurance needs often shift from income replacement to legacy planning and final expenses. With children becoming independent and mortgages shifting, you may need to adjust your coverage—but eliminating it entirely might not be the best option.

By the numbers:

• 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.

Reviewing your coverage during this stage ensures you’re leaving a lasting legacy while protecting your loved ones from financial burdens.

How Quashed helps you, no matter your life stage

At Quashed, we make it easy to find the right insurance, no matter where you are in life. Here’s how we help:

• 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 life insurance policies side-by-side with all the key details—costs, cover amounts, and benefits—tailored for your life stage in New Zealand.

• Perks made simple: 10% off for the first 12 months, 25% off a Les Mills membership, and discounts based on your health. These perks, offered by the insurers on the platform, are clearly displayed with Quashed.

• 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!

Further reading

Here are some helpful resources to guide you at every stage—some of these are broader than life insurance:

• Life Insurance Mistakes: Avoid common life insurance pitfalls with this guide.

• Life Insurance 101: A beginner-friendly introduction to life insurance.

• Is Contents Insurance Worth It for Renters?: Discover why contents insurance is important.

• Top House Insurance Questions Answered: Your key house insurance questions.

• Cost of Life Insurance: Learn what affects life insurance premiums.

• 8 Budget Hacks for House Insurance: Smart tips for Kiwi homeowners.

• KiwiSaver and Underinsurance: Explore our thoughts about how KiwiSaver could tackle New Zealand’s underinsurance challenge.

FAQs

Do I need life insurance if I am young and single?

Life insurance may not be essential if you have no dependents or debts. However, it can still be useful for:

• Covering funeral expenses so family members are not burdened.

• Locking in a lower premium while young and healthy.

• Providing cover for personal or business debts.

• Ensuring future insurability if health conditions develop later.

How do life insurance needs change when starting a family?

Once you have a partner or children, life insurance becomes more important to:

• Replace lost income if one partner passes away.

• Cover mortgage payments and daily expenses.

• Secure future education costs for children.

• Provide financial stability for dependents.

Many families choose higher coverage during this stage to ensure financial security.

Is life insurance necessary if I have a mortgage?

If you have a mortgage, life insurance helps ensure:

• Your family can remain in the home if you pass away.

• Loan repayments do not become a financial burden on dependents.

• There is enough financial support to avoid selling the property under stress.

Some lenders may recommend mortgage protection insurance, but life insurance offers broader financial security.

What happens to life insurance needs as children grow up?

As children become financially independent, you may need to adjust coverage by:

• Reducing the sum assured if major debts are paid off.

• Switching to a policy that covers only final expenses and estate planning.

• Reviewing whether ongoing income replacement is still necessary.

Is life insurance still important after retirement?

Life insurance can still provide benefits in retirement, especially for:

• Covering funeral costs and estate taxes.

• Leaving a financial gift to family members or charities.

• Paying off any remaining debts.

• Providing funds for a surviving spouse’s living expenses.

However, if savings and assets are sufficient, some retirees choose to cancel or reduce coverage.

This article provides general information only and does not constitute insurance or financial advice. Insurance policies vary between providers, and you should check with your insurer or a licensed adviser for guidance specific to your situation. For full details, refer to Quashed’s terms and conditions.