Understanding what drives your premium costs

Before jumping into money-saving tips, it helps to understand what affects your life insurance costs in New Zealand. Think of it like your Trade Me feedback score—lots of little factors contribute to the final number. Your age, health, occupation, and lifestyle all play a part. For example, a 35-year-old software developer in Wellington is likely to pay less than a 45-year-old construction worker in Auckland. By knowing what insurers look at, you’ll be better equipped to find options that work for you and your budget.

Smart strategies to reduce your premiums

If you’re wondering how to turn insights about your premiums into savings, you’re in luck. There are plenty of practical ways to bring down costs without compromising your coverage. Let’s dive into some tried-and-tested strategies to help you save on life insurance in New Zealand.

1. Become a bundle master

Just as combining your broadband and mobile plan can save you money, bundling your insurance policies often leads to substantial discounts. Many New Zealand insurers offer multi-policy discounts when you combine life insurance with health, income protection, or trauma coverage.

However, bundling is not always the cheapest option. A detailed analysis by Quashed highlights that while bundling simplifies management, individual policies from different providers may sometimes be more cost-effective.

2. Health is wealth (literally)

Here's a motivating thought: improving your health doesn't just make you feel better—it can actually reduce your insurance premiums. Insurance providers often reward healthy lifestyles with better rates. Consider these steps:

• Quit smoking (smokers typically pay 50-100% more in premiums)

• Maintain a healthy BMI

• Manage pre-existing conditions

• Regular exercise and healthy eating habits

For example, non-smokers typically get much better rates, and some insurers, like AIA, offer wellness discounts through programs like AIA Vitality.

3. Choose coverage that fits like your favourite jandals

One size doesn't fit all when it comes to life insurance. Your coverage should align with your life stage and circumstances. A young family in Hamilton might need different coverage than an empty-nester in Christchurch. Regular policy reviews ensure your insurance evolves with your life changes. Financial advisors recommend annual reviews to align your coverage with milestones like marriage, purchasing a home, or having children.

4. Time your purchase right

Like booking flights to the Gold Coast, timing matters with life insurance. Generally, the younger and healthier you are when you purchase coverage, the lower your premiums will be.

5. Payment strategy matters

Small tweaks to how you pay can lead to surprising savings:

• Annual payments often come with discounts compared to monthly payments

• Setting up automatic payments can qualify you for additional discounts

• Some insurers offer lower rates for paying through specific methods

Check out our blog on understanding life insurance costs and how to save money effectively.

Quashed: life insurance made simple

Finding life insurance used to feel like assembling flat-pack furniture without instructions—frustrating and time-consuming. Quashed simplifies the process by:

• Letting you compare policies side-by-side from leading insurers.

• Providing real-time pricing and coverage details so you can confidently choose the best option for your needs.

• Highlighting extra perks, like gym discounts, and offering smart tools to guide you through every step of your decision-making journey.

Why wait? Sign up today to compare policies, unlock exclusive perks, and find coverage that protects what matters most—all in minutes.

FAQs

How can I reduce my life insurance premiums in New Zealand?

Small changes can make a big difference. Quitting smoking, staying active, and maintaining a healthy weight can help lower your premiums. You could also save by bundling your policies, paying annually, or comparing providers. Tools like Quashed can help you explore options that fit your budget. Remember, savings depend on your unique circumstances and insurer policies.

What is the cheapest life insurance option in NZ?

The most affordable option for you depends on factors like your age, health, and how much cover you need. Comparing policies on platforms like Quashed can help you find one that suits your budget and needs. Keep in mind that "cheapest" doesn’t always mean the best fit, so it’s worth considering professional advice.

How does age affect life insurance costs in New Zealand?

Your age plays a big role in determining premiums. Generally, younger people pay less for life insurance. Locking in a policy early could mean lower rates over time, but it’s worth reviewing your options to ensure they align with your overall goals.

Are there any life insurance discounts in New Zealand?

Yes, many insurers reward healthy lifestyles, like being a non-smoker, and some offer discounts for bundling policies or paying annually. Perks like gym memberships or wellness benefits are also sometimes available, but they vary between providers. Quashed makes it easy to see what discounts and perks different insurers offer.

Can I switch life insurance policies to save money?

Yes, switching policies can save you money if your needs have changed or you find a better fit. However, it’s essential to understand any potential costs, changes to your cover, or impacts on existing benefits before making the switch. Quashed simplifies the comparison process, helping you explore options that suit your current situation. For personalised advice, consider speaking with a licensed financial adviser.

How does smoking impact life insurance premiums?

Smoking can make premiums significantly more expensive—sometimes up to twice as much. Quitting improves your health and can make you eligible for better rates over time. Policies differ by insurer, so check with your provider about how quitting could impact your premiums. To learn more about saving premiums, read our blog.

What factors affect life insurance premiums in New Zealand?

Insurers look at factors like your age, health, job, and lifestyle when setting premiums. Smoking or high-risk hobbies can raise costs, while discounts for bundling policies or paying annually might help reduce them. Platforms like Quashed let you explore options tailored to your needs.

How can I find affordable life insurance options in New Zealand?

Finding affordable life insurance is all about making informed choices. Quashed allows you to compare policies side by side, tailor your cover to your needs, and check for discounts like bundling or healthy living rewards. Your best option will depend on your circumstances, so take time to compare.

Is it worth comparing life insurance policies in New Zealand?

Absolutely! Comparing policies ensures you’re getting value for your money and the right cover for your needs. Quashed can make this process quick and simple, helping you find policies that match your budget and lifestyle.

What is the best way to lower life insurance costs in New Zealand?

Focus on what you can control—maintain a healthy lifestyle, tailor your cover to what you need, and explore discounts like bundling multiple policies. Quashed is a great tool to help you compare providers and make sure you’re not overpaying for your cover.

The information provided in this FAQ is for general informational purposes only and does not constitute financial advice. Insurance policies, coverage options, and pricing may vary based on individual circumstances and provider terms. For full details, please refer to our Terms and Conditions and consider seeking professional financial advice to determine the best solution for your needs.