Why Life Insurance Still Matters in Your 50s
Your 50s are a time of transition. The kids may be finishing school or moving out, your mortgage might be smaller, and retirement is starting to feel closer. It’s also a stage when you start thinking seriously about safeguarding your health, income, and lifestyle and making sure the life you’ve worked hard to build is protected.
Even if you’ve had insurance for years, your needs may have changed. Life insurance, trauma cover, total and permanent disability (TPD), and income protection are still important in your 50s. They’re not just about preparing for the unexpected, they’re about giving you peace of mind and protecting your financial future.
Why Insurance Still Matters in Your 50s
Statistics show that insurance remains crucial for Kiwis in their 50s. In 2024, Resolution Life paid out $155 million in claims to over 2,141 customers, and most of these claims — about 98% — were made by customers aged 50 and over. This really highlights the importance of maintaining your cover as you age.
Even in your 50s, unexpected events can happen. Life insurance provides a lump sum payment if you pass away or are diagnosed with a terminal illness, and this money can help cover mortgages, debts, living costs, or final expenses, ensuring your family is supported when they need it most.
Protecting Your Retirement and Lifestyle
One of the key reasons to review your insurance in your 50s is to protect your retirement. Many Kiwis are still paying off mortgages or building retirement savings at this stage, and an accident or illness could significantly affect your plans if you don’t have the right protection in place. Insurance helps safeguard your financial goals, making sure that your journey to retirement stays on track.
The average life expectancy in New Zealand is 80 for men and 84 for women, which means many people will spend 20–30 years in retirement. To maintain a comfortable lifestyle, you may need around $500,000 in savings on top of NZ Superannuation in rural areas, and over $1 million in major cities. Insurance can play an important role in bridging gaps, protecting both your wealth and your family’s wellbeing.
Reviewing Your Insurance Cover
Your insurance needs may change as your circumstances change. For example, if your mortgage is mostly paid off or your children are financially independent, you might not need the same level of life insurance cover as before. On the other hand, your income protection or trauma cover might need to be adjusted to reflect your current work situation or health.
A financial adviser can help you review your insurance cover, ensuring it is still relevant and affordable. They can assess your personal circumstances, including your health, lifestyle, and financial goals, and recommend changes to better suit your current stage of life. Some options might include:
Adjusting your cover amount – Reducing life insurance if you have fewer financial obligations, or increasing it if your responsibilities have grown.
Changing your waiting or benefit periods – For income protection, adjusting when benefits start or how long they are paid can reduce premiums while still providing protection.
Opting out of inflation adjustments – While insurance often increases annually to keep up with the cost of living, you can choose to pause these adjustments to keep premiums affordable.
Reviewing health and activity loadings – If your health has improved, or you no longer participate in high-risk activities, you may be able to reduce premiums.
Maintaining insurance cover is generally more cost-effective than cancelling and taking out a new policy later, especially as health and lifestyle changes can affect eligibility and premiums.
Supporting Your Family and Loved Ones
Beyond protecting your income and retirement, insurance makes sure your loved ones are taken care of. Life insurance can cover debts, final expenses, and even provide financial support for children, grandchildren, or elderly parents. In 2024, the average funeral cost in New Zealand was approximately $10,000, yet only 5% of New Zealanders had pre-planned their funerals — having the right cover in place can ease the financial burden and give your family peace of mind during a difficult time.
Insurance isn’t just about risk, it’s about planning and ensuring that your loved ones are looked after. Whether it’s paying off a mortgage, funding education, or covering medical expenses, your cover means that your family can continue to live comfortably even if something unexpected happens.
Getting Professional Advice
Your 50s are an important stage for reviewing and updating your insurance. Responsibilities, health, and financial priorities evolve, and having the right protection in place ensures that your family is secure, your retirement plans are protected, and you can enjoy life knowing you’re covered.
If you’re in your 50s and reviewing your insurance, our financial advisers can help you make informed decisions. We can take a look at your current cover, suggest updates, and help you choose the right type and level of protection for your circumstances. Even small adjustments can make a big difference in keeping your insurance relevant and affordable.
Need help reviewing your insurance? Contact us today to speak with an adviser and get peace of mind for your future.