The Financial Impact
Meet Jack and Jill — a fictional Kiwi couple with a very real story.
Jack is 35, Jill is 32. They both work in management roles and earn decent incomes — about $6,000 each per month before tax. They’re raising two kids, own a home with a $600,000 mortgage, and between them they’ve got modest KiwiSaver balances and around $12,000 in savings.
They’re doing well. But what would happen if life took a sudden turn?
Four Risks That Could Change Everything
Most people think about insurance in vague terms — something for “just in case.” But let’s get specific. Here are the actual odds of something serious happening to either Jack or Jill before they turn 65:
15% chance that one of them dies early
9% chance of total and permanent disability
26% chance of suffering a critical illness like cancer or a heart attack
28% chance of being off work for six months due to injury or illness
That’s not “what if” — that’s nearly a 1 in 3 chance something significant will happen. So let’s look at what those scenarios would actually mean.
What If One of Them Dies?
With one income gone, their household budget would suddenly fall short by $6,000 every month. And that’s on top of the emotional toll of losing a partner and parent.
Yes, they have KiwiSaver and some cash. But combined, that would last maybe 6–9 months — and that’s without factoring in funeral costs, legal fees, or the cost of potentially moving house, changing schools, or reshuffling their entire life.
What If One Is Permanently Disabled?
Again, they lose an income — but this time there are also long-term care costs, home modifications, and potentially years of reduced capacity. KiwiSaver may be partially accessible, but that only stretches so far. And what if the healthy partner has to step back from work to help?
What If There’s a Serious Illness?
Not every illness is life-threatening, but many are life-altering.
Take a heart attack: maybe it’s a short hospital stay and a few weeks of recovery. But cancer? Suddenly you’re looking at months of treatment, time off work, non-Pharmac drugs, and in some cases, expensive overseas options.
Even if the treatment works, the financial ripple effect is real — especially if you can’t bounce straight back to work.
What If One of Them Can’t Work for 6+ Months?
Broken bones heal, but chronic illness or degenerative conditions (like arthritis or autoimmune disorders) don’t always play nice. Jack and Jill’s $12,000 in cash would last under two months — and relying on one income won’t cut it.
Government support is limited. Jack and Jill might get a small accommodation supplement, or a little bit of childcare support. But nothing close to replacing their income or clearing their mortgage.
The Real Question: What's the Plan?
Without insurance, their fallback options aren’t great:
Sell the house and try to buy something cheaper (not easy on one income)
Move in with family (possible, but stressful)
Rent (and deal with rising costs and instability)
All while grieving, recovering, and trying to keep life as normal as possible for their kids.
Insurance = Breathing Room
The right cover isn’t about being paranoid — it’s about giving your family breathing room. Room to grieve properly. To recover at home, not at work. To focus on your health, not your bank account.
A good rule of thumb? Spend the equivalent of one hour of your work week on insurance. That’s it — and it could save your whole financial future.
It’s Worth Talking About
Your life might not look exactly like Jack and Jill’s — but the risks are the same. If someone relies on your income, or if you’d struggle to keep things running without it, now’s the time to make a plan.
Let’s talk. We’ll walk you through your options and help you figure out what’s worth protecting — and how.
Information from this blog post was sourced from the Quotemonster information flyer that can be downloaded directly here.