When it comes to insurance, what do you really need? And which policies should New Zealanders prioritise to protect themselves and their families?
One of the most important (and often overlooked) answers is life and health insurance. It’s about having a Plan B in place, a safety net that means if life takes an unexpected turn, you and your loved ones are protected and can focus on what really matters without financial stress getting in the way.
To unpack what this looks like in practice, we spoke to Carl Larcombe, Insurance Manager at ASB, who shares what life and health insurance is, the different type of cover available, and how to make it affordable at every stage of life.
Why life and health insurance matters
In simple terms, life and health insurance is about having a protection plan. If the unexpected happens, it means you and your family have a financial fallback.
At ASB, we often see firsthand the difference it makes when something goes wrong, because we’re often the first phone call people make.
Life insurance is usually the first thing people think of. It’s designed to help reduce or clear debt, help with funeral expenses, and help loved ones financially if you pass away, as well as helping with financial impacts if you were diagnosed with a terminal illness. But life cover only protects you in the event of death or terminal illness.
That’s why we always talk to customers about the living benefits too. These are the covers that step in if you can’t work due to illness, disability or injury, and they can make all the difference in helping you keep life on track.
The types of cover you can choose
When I sit down with customers, we look at the different options available to build a protection plan that fits their life.
It can feel overwhelming at first glance, but we often say the foundation usually comes down to two key components: life insurance, which protects your family if you were to pass away or become terminally ill, and income protection, which helps if you were unable to work due to sickness or injury. From there, you can add other types of cover depending on your needs and budget.
Here’s a quick overview of the main options we offer at ASB:
- Life insurance
Pays a lump sum or a monthly payment if you pass away or are diagnosed with a terminal illness. It helps your family keep up with expenses like the mortgage, school fees or everyday costs.
- Income protection
If you couldn’t work, how would you pay the bills? Income or mortgage protection can replace part of your income or cover your repayments if you’re unable to work due to sickness or injury.
- Critical conditions cover
Pays a lump sum if you’re diagnosed with a serious condition such as cancer, stroke or heart disease. It can be used however you need – to fund treatment, reduce work hours, or ease family expenses.
- Total permanent disablement (TPD)
If you became permanently disabled and unable to work, TPD cover provides a lump sum to help your family adjust and stay financially secure.
- Health insurance
Helps you access treatment promptly, covering surgery, diagnostics, and support for things like chemotherapy or specialist care, with options for overseas treatment too.
Why your cover might need to change with your life stage
Life isn’t static, and insurance shouldn’t be either. Your needs will change as you move through different stages, such as:
- Buying a home and taking on a mortgage
- Starting a family
- Changing jobs, income levels, or becoming self employed
- Becoming an empty nester
- Experiencing health changes.
At each stage, it’s worth checking in with an Insurance Manager to make sure your Plan B is still the right fit.
Making cover affordable
Cost is always part of the conversation. My role is to work with customers to understand not only their goals, but also their budget, so we can put the right level of protection in place.
Sometimes that means starting with a solid foundation policy then building on it as your income grows. We also have flexibility in how cover is structured. Choosing a longer waiting period or a shorter claim term can reduce premiums, and bundling different covers can unlock a multi-benefit discount.
Another advantage is that when you take out a life or health insurance policy with ASB, you can join AIA Vitality. It’s a science-backed health and wellbeing programme that rewards you for making healthy choices like staying active, eating well or quitting smoking. In return, you can access premium discounts and rewards with everyday brands. It’s a win win: you’re looking after both your personal and financial wellbeing.
Peace of mind
For me as a father, having insurance takes a huge weight off my shoulders. It means that if the unexpected happens, I know my family won’t have to worry about the mortgage being paid or the kids’ school fees. Instead, we can focus on each other, on recovery and on moving forward.
Many of my customers tell me the same thing. Having that Plan B in place makes them feel more confident about the future. Insurance can’t prevent life’s challenges, but it can stop them from derailing everything you’ve worked for.
Tools and support from ASB
We have a team of Insurance Managers across the country who can help you at any stage of life. One of the biggest advantages for our customers is the partnership between ASB and AIA. Together, we combine local support with global strength. Our Insurance Managers work with you face to face to tailor cover, while AIA underwrites all our policies and continually evolves their products to meet the needs of everyday New Zealanders. And when it comes to claim time, you can trust AIA to stand behind your policy and make the process as smooth as possible.
We also make it simple to manage your cover with the MyAIA online portal, where you can update your policy or make a claim anytime. And the AIA Vitality app helps you stay on top of your health and wellbeing while earning weekly rewards for positive lifestyle choices.
Finally, we encourage regular policy reviews. Life changes and your cover might need to change with it. Our team is here to make sure your insurance always remains fit for purpose.
Time to lock in your Plan B?
Life and health insurance is about more than financial protection. It’s about creating stability for you and your loved ones when life is uncertain. Having a Plan B means you can focus on what matters most without the added pressure of financial stress.
By seeking advice, tailoring cover to your stage of life, and making the most of the tools on offer, you can take real control of your financial wellbeing. Together, ASB and AIA are here to support you through the good times and the challenging ones, making sure that when life throws the unexpected your way, you’ve got the right protection in place.
The availability of insurance cover is subject to your application being approved. All applications are subject to individual consideration. Special conditions, exclusions or premium loadings may apply. An excess may apply for health insurance policies. For full details, refer to the Policy Document which is available on request from ASB Bank Limited. ASB’s life, health and disability insurance is underwritten and administered by AIA New Zealand Limited (“AIA”) and distributed by ASB Bank Limited (“ASB”).
