Life Insurance in NZ Is Getting Pricier. Here’s Why You Should Review It Soon

The cost of life insurance in New Zealand is rising, and that makes now a smart time to check whether your cover still fits your needs. With inflation, higher claims costs, and shifting premiums, the policy you took out a few years ago may no longer offer the same value today.

What’s happening in the life-insurance market

• Premiums are increasing. Insurance premiums rose by roughly 6% in the last year, outpacing general inflation of 2.7%. NZ Herald
• Claims are rising. Accepted life insurance claims increased by 21%, while premiums and coverage levels have not grown at the same pace. FSC Industry Spotlight
• Younger clients benefit from lower premiums. A healthy 30-year-old in NZ might pay around $10.75–$13.00 fortnightly for $500,000 of life cover. Policywise
• Costs rise sharply with age or health changes. Waiting to take out or review cover can lead to significantly higher premiums.

These trends show that delaying a review often leads to higher costs later.

Why reviewing your insurance regularly matters

Ensure your cover matches your life today
Your income, debts, dependents, and responsibilities change over time. A policy set up years ago may not match what you need now.

Lock in more affordable premiums
Premiums generally rise with age. Reviewing now may help you secure better pricing than if you wait.

Avoid cover gaps or shortfalls
With higher claims and policy changes across the industry, a review ensures your policy is still competitive and suitable.

Keep up with rising costs
Inflation and higher living costs mean your existing cover amount may not stretch as far as you expect.

When to review your life insurance

You should consider a review when:

• You hit a milestone age such as 30, 40, or 50
• You buy a home or take out a mortgage
• You have children or additional dependents
• You experience a change in health or income
• You haven’t reviewed your policy in 2–3 years
• Inflation or living costs have increased since your last review

What to consider during a review

• Compare stepped vs level premiums
  • Stepped premiums start low but rise with age
  • Level premiums cost more now but remain stable long-term
• Check your sum insured
  • Income, debts, dependents, and future expenses should guide your cover amount
• Review health and lifestyle factors
  • These influence both pricing and policy conditions
• Adjust for inflation
  • Rising costs mean older policies may not provide enough protection

Why it helps to talk to an adviser

With premiums rising and policies changing across the industry, an adviser can help you:

• Review your existing policies
• Compare different insurers and premium structures
• Determine the right level of cover for your situation
• Understand how changes in age, health, or lifestyle affect pricing
• Make sure you’re not paying for cover you don’t need, or underinsured without realising

A review now may reduce financial stress later and ensure your family is protected.

Ready to Review Your Life Cover?

If your policy was set up years ago, or hasn’t been checked recently, this is the right time to take another look.

Talk to Invicta Financial and we’ll help you review your life cover, compare options, and make sure you’re properly protected before costs rise again.