What is life insurance?

Published on Wed Mar 18 2020 in Money

Life is full of planning. There’s the big stuff – saving for a home, getting married or starting a family — but also small, everyday tasks like making shopping lists or arranging after school pickups. No matter the task, if you’re planning it now, then it’s probably important to your future. 

Planning for the future is often exciting, but not always. Imagining life after you’re gone is probably one of the most difficult things you may need to consider.

What is life insurance?

Life insurance is a type of insurance policy designed to help provide financial assistance to you or your family in the event of a terminal illness diagnosis or unexpected death.

Whilst many families use a life insurance benefit to help replace a loved one’s salary, the money can actually be used for anything they may need. This may include short-term concerns, like paying household bills or covering the cost of a funeral. It could also help provide funds for bigger needs, such as paying off a mortgage or covering school fees.

Why do people buy life insurance?

No matter how the money is used, the general idea behind a life insurance benefit is to provide peace of mind to those left behind. A lump sum benefit is paid out in the event of your death or terminal illness diagnosis and this money can be used by your family however it is needed.

Getting covered

You can generally apply for Life insurance over the phone. You will just need to answer some health and lifestyle questions to determine whether your application is successful. 

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


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The content provided in this article is for information purposes only. The information is of a general nature and does not constitute financial advice or other professional advice. To the extent that any of the content constitutes financial advice, it is limited to Momentum Life products only and does not consider your specific financial needs or goals. You should consider whether the information is appropriate for you and seek independent professional advice, if required.

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