Learn the types of cover available and what's right for you
Life Insurance for New Zealanders
Can New Zealand citizens living in Australia get life insurance?
Yes, it is possible for New Zealand citizens to take out life insurance if they are living in Australia. Most insurers apply the following eligibility requirements:
- Must be aged between 18 and 75 (aged next birthday)
- Be an Australian or New Zealand citizen or a holder of an Australian Permanent residency
- Currently be residing in Australia
Which Australian providers offer life insurance products to New Zealand citizens?
There are many insurance companies throughout Australia who offer comprehensive life insurance solutions to New Zealand citizens who are living in Australia. Some of these companies include;
You may be required to prove that you are currently living in Australia at the time you apply for the life insurance policy.
What are the different types of life insurance available for applicants from New Zealand?
Insurance companies that provide life insurance for New Zealanders living in Australia offer these citizens a wide range of options. You will easily be able to find companies that cover nearly all of the benefits and services you need. It is very important, however, that you take the time to carefully evaluate each policy you are considering. Each insurance provider has different features and options available. Read through each company’s terms and conditions to ensure that the policy you choose meets your needs.
- Life cover. Life cover will provide a lump sum payment to your beneficiary, or beneficiaries, in the event of your death. This coverage can help your family during this difficult time by providing additional funds to make up for the loss of income. Your beneficiaries can use this disbursement as they see fit, but it can be used to help cover funeral expenses, pay off a mortgage, or put into savings for their future. The amount of life cover needed depends on your specific set of circumstances.
- TPD insurance. Total and permanent disability insurance will provide you with a lump sum payment in the event of a serious illness or injury that has left you permanently disabled. These funds can cover additional expenses related to your illness or injury and cover loss income due to your inability to continue working.
- Income insurance. Income insurance is designed to help cover your wages if you need to be off work for several week or months due to an illness or injury. Most policies will pay you around 75 or 80 per cent of your standard gross wages for a set period of time or until you are able to return to work.
- Funeral insurance. Funeral insurance is obtained to specifically help cover the costs involved in planning a funeral. These policies are usually obtained for amounts of $5,000 to $30,000 depending on the policyholder’s specific needs. This cover will be paid out to the beneficiary or beneficiaries at the time of your death.
Can a New Zealander obtain life insurance through superannuation?
Many people living in Australia do not realise that they can obtain life insurance through their superannuation fund. New Zealanders living in Australia maintain the same rights to obtain life cover through their super fund that Australian citizens do.
You already have life cover set up with your employer
In fact, you may already have an insurance policy through the superannuation set up by your employer.
What's the benefit of taking out life cover through super?
This offers a very convenient and affordable option for many people to obtain life insurance. Typically, this life insurance for New Zealanders only provides minimum coverage benefits, but you have the right to increase your life cover amount at any time. You, of course, will be responsible for any additional fees associated with the rise in your policy. This can be a great option for many people because the premium payments are usually lower, although these rates are expected to greatly increase over the next several years. It can also provide a special tax benefits, because your payments will be made from your super account rather than your income after taxes.
Be aware of the limitations
Life insurance through your super may not provide the same comprehensive benefits as other policies. In addition, if your employer stops making payments, your coverage may end without giving you enough notice to maintain it. Before making the decision to add to obtain life insurance for New Zealanders through your superannuation, be sure to read through the terms and condition and make sure the policy will be enough to meet your specific cover needs.
Tips for comparing life insurance if you're a New Zealander
It is very important that you shop around before choosing the right life insurance policy for you.
- Determine how much cover you need.The first thing you want to do is to access your needs and determine what type of coverage and how much coverage you need.Then you can start looking at different insurance companies throughout Australia.
- Check if the brand can cover New Zealanders. Make sure that the insurance company accepts New Zealanders.
- Pay close attention to the terms and conditions of the policy. Check to see if there are any exclusions to your policy, limits on payouts, or waiting periods before certain benefits are effective. These factors may lessen the benefits included in your policy.
- Read reviews for cover online. You can also go online and check out reviews for any of the companies you are considering purchasing life insurance for New Zealanders.
- Review your policy regularly. Even after you select an insurance cover, it is a good idea to look over your policy every year to make sure it is still meeting your needs. You may find that you need to increase or decrease your cover amount depending on any life changes that may have occurred.
You could be missing out on additional super returns.
Ask an Expert