As we enter our later years, our priorities and responsibilities can change substantially.

For those aged 55 and above, life often involves enjoying the fruits of decades of hard work. You might be considering early retirement, travelling more, and possibly having paid off significant debts. You may also be looking after grandchildren or having to work longer than expected. Here are key insurance types to consider:

Health insurance: Is crucial to ensure access to quality medical care without relying on the struggling public health system. Opting for major medical cover with a higher excess can help manage costs, while maintaining a rainy day fund to cover the excess ensures financial security. This approach balances comprehensive protection with affordability.

Income protection: Even if you’re nearing retirement, income protection remains vital. It provides financial support if you are unable to work due to illness or injury, ensuring you can maintain your standard of living while recovering. 

Life insurance: The amount of cover can often be reassessed as debts are reduced and financial responsibilities shift. With mortgages paid down and children becoming financially independent, you may find that you need less cover than before.

Trauma insurance: Provides a lump sum payment if you are diagnosed with a specified illness or injury listed in your policy, such as cancer, heart attack, or stroke. Trauma insurance can be a good option to cover immediate expenses and support recovery without the need for proof of income or working hours. 

Purchasing insurance policies at a younger age can make them easier to maintain and more affordable, with fewer exclusions for pre-existing conditions. Securing coverage early ensures comprehensive protection that adapts to your changing needs over time. It’s also crucial to regularly review your existing coverage to ensure it remains fit for purpose. A financial adviser can help by annually checking your policies and recommending adjustments to suit your current circumstances.

This information is of a general nature and is not intended as personalised financial advice. RIVAL Wealth is a Financial Advice Provider (FAP) licenced by the Financial Markets Authority to provide financial advice. Our disclosure document is located at rivalwealth.co.nz or a written copy is available on request