KiwiCover

How much do you really know about life insurance? Take our quiz and find out.

The main purpose of life insurance is to:

Make up for loss of earnings if an insured person is unable to ever work again.

Pay for urgent medical expenses to save the life of an insured person if that is needed.

Meet an insured person’s debts and other financial commitments in the event of death.

Provide a lump sum if an insured person is diagnosed with a life-threatening illness.

New Zealand studies show that, in general:

Adult Kiwis have more life insurance cover than they need.

Kiwi families have more life insurance than families in other countries.

Individual adults and Kiwi families have adequate levels of life insurance.

Kiwis have chronic levels of underinsurance when it comes to life cover.

The best time to apply for life insurance is:

Today, because you don’t know what might happen to you tomorrow.

Tomorrow, because you shouldn’t do now what you can put off until then.

As soon as you have any dependants, whenever in the future that might be.

As soon as you develop a serious medical condition, so you can be covered for it.

Today, medical examinations and tests are:

Never required for a life insurance application.

Sometimes required for a life insurance application.

Usually required for a life insurance application.

Always required for a life insurance application.

The best life insurance policies today provide cover outside of New Zealand:

Only if you are overseas for less than 12 months.

Only if you are on holiday overseas and not working.

Whenever you are overseas, regardless of why or for how long.

Only if your travel insurance does not cover you.

If you first suffer a medical condition after your life insurance policy is issued:

You must notify the insurance company in order to be covered for that condition.

You have no obligation to notify the insurance company - you are already covered.

You need only notify the insurance company if the condition is life-threatening.

Notifying the insurance company is optional, but is recommended for claim purposes.

If you miss a premium on your life insurance policy:

Your policy is automatically cancelled on the day after the premium is due.

Your policy is automatically cancelled if it remains unpaid for 14 days.

Your policy can only be cancelled after one month and only if the insurer notifies you.

Your policy can never be cancelled by the insurer for non-payment of premiums.

If an insured person dies, the person entitled to receive the life insurance benefit is:

The next of kin of the insured person.

The executor of the insured person’s will, regardless of who the policy owner is.

The policy owner, but only if the policy owner is related to the life insured.

The policy owner, regardless of who that person is.

The main purpose of a financial strength rating provided to a life insurance company is to:

Show how well the company has met its financial obligations in the past.

Warn investors how risky the company is to buy shares in.

Indicate how competitive the company’s insurance premiums are.

Provide a measure of the ability of the company to meet its insurance claims.

A person who is in the business of providing personalised advice on life insurance to individuals in New Zealand must be:

A Licensed Financial Adviser.

A Registered Financial Adviser.

An Approved Financial Adviser.

An Authorised Financial Adviser.

Life Insurance Quiz

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