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Life insurance can be difficult to understand, it’s often that first question— Do I really need life insurance?— that can be the most confusing. Chances are, you probably do need a policy. Accidents happen, and providing your loved ones with some peace of mind could help ease their burden if the unexpected does occur.

Here are four common myths keeping New Zealanders from taking care of their life insurance needs:

1. I’m single and have no children, so I don’t need cover.

Even if you’re single with no dependent children, having life insurance might still be a good idea. When you pass away, your debts unfortunately don’t disappear. Financial obligations such as a car payment, mortgage, student loans or even credit card debt, could be passed to a parent, spouse or other next-of-kin. A life insurance policy could give your family enough money to pay off these expenses if you were to die unexpectedly.

2. I’m a stay-at-home parent or work part-time—it’s not worth it to get covered.

If you’re part of a two-income household, then cover for yourself and your partner could be important. This may be especially true if your paycheque is needed to pay the bills. However, covering a stay-at-home parent may also make sense. Consider all the ‘services’ a homemaker provides: childcare, shopping, cooking, housekeeping, transportation… Hiring someone to cover even half of these tasks would be expensive! An insurance policy could help cover the cost of hired help, especially when it comes to childcare.

3. I bought a policy years ago, so I’m covered!

As your life changes, your insurance needs may also change. A policy taken out in your twenties might no longer match your financial situation. If you’ve gotten married, had children, or purchased a home since buying your policy, you may need to increase your cover. On the other hand, there are times when you may make sense to lower the benefit amount. If you’ve paid off the mortgage and other large debts, you may no longer need as much cover to help your loved ones. 

4. I can’t afford life insurance, it’s too expensive.

A recent report found that nearly 40% of Kiwis haven’t taken out life insurance because they cannot afford the premiums.1 However, there are many great policies now available that could put life cover within reach for more New Zealanders. Depending on factors such as your age and if you smoke, a policy could be more affordable than you previously thought!

Momentum Life offers life insurance cover to New Zealanders, with affordable premiums and flexible payment schedules. Start protecting your financial future, contact us for a quote.


A version of this article was first published on 5 July 2017. It has been updated to reflect more current stats and Momentum Life products.

Disclaimer: The information provided in this article is of general nature, and does not take into account your personal situation. You should consider whether the information is appropriate to your needs or seek professional advice, where necessary.

All product information is correct at the time this article was published. For current product information, please visit the Momentum Life website.


1. Financial Services Council, Risking Everything: Insight into how New Zealanders manage risk, June 2019



About Author: Momentum Life is a leading provider of Life insurance, Funeral insurance and Accident insurance in New Zealand.

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