Here’s an insurance stat that might surprise you: New Zealanders are almost twice as likely to have car insurance as they are to have life or health insurance… despite life insurance protecting arguably your most valuable asset: you.

The data speaks: In NZ cars come first, people come second

According to 2025 research from the Financial Services Council (FSC):

• Kiwis are more than twice as likely to have car insurance as they are to have life or health insurance.
• We’re also much more likely to insure our homes and contents than we are to protect our income, health, and loved ones.
• The mostly commonly claimed on insurance is car insurance – however the second most common is health/medical insurance.
• Nearly a quarter of people surveyed used to hold health or life insurance but have given it up.

Why are we prioritising stuff over ourselves?

A few patterns emerge from the FSC research and wider industry insight:

1. Tangible = Immediate

People see the value in protecting a car’s bodywork after a dent. But the impact of losing income, facing a serious illness, or sudden death feels distant or hard to imagine.

2. Cost Is a Barrier

Many Kiwis consider life and health insurance expensive – and rising living costs make it easy to drop coverage. Life and health insurance are often purchased directly by individuals, rather than being part of workplace benefits, which could make access more affordable.

3. Misunderstanding or Misperception

Even though 85% of Kiwis say they understand life insurance, there can be confusion about how it works and what it covers. There’s also poor understanding of why it matters – especially for younger people who feel “healthy now” or those that believe our public system will be sufficient should they need support.

Flipping the insurance script: Your life (and income) is your biggest asset

Your car may be valuable but you (your skills, your earning power, and your wellbeing) are even more so!

Life insurance and personal risk insurance (like trauma and income protection) provide financial support when life throws curveballs:

• Health insurance allows you faster access to specialist care and treatment when you need it most.
• Income protection helps replace wages if you’re unable to work due to illness or injury.
• Life insurance can help cover mortgages, family costs, education expenses, and funeral costs.
• Trauma and critical illness cover can ease the financial strain of major health events.

Without these protections, individuals and families often face tough financial decisions at the very time they’re least prepared.

Is it time to rethink the way you’re insured?

Protecting what you own makes sense – but protecting who yourself and your loved ones matters even more. It’s important to:

• Review your insurance needs regularly: Life changes – relationships, mortgages, jobs, and health can all affect what kind of cover you should hold.
• Avoid solely relying on public system: ACC and public health services play a vital role, but there can be a gap between what’s offered through the public system and the needs of the affected person. Private insurance bridges that gap to ensure better financial cover and access to care options.

Insurance shouldn’t just be about cars and gadgets. It should be about peace of mind, financial resilience, and making sure that if life doesn’t go to plan, you and your loved ones are looked after.

If you find yourself thinking “I’ll insure that later” then maybe it’s time to take a second look.