Why people in their 40s are having more health-related claims than ever before

If you are in your 40’s, you might be considering putting off Insurance until your 50’s, thinking that’s when you’ll start needing it.

However, you’d be surprised to hear that our advisers are actually seeing an increase in physical and mental health-related claims for your age group – and stats confirm that. So before you put Insurance on hold, here are some hard facts from Sovereign, one of New Zealand’s biggest Life Insurance providers.

What Kiwis in their 40’s are claiming on

Protecting our health is key at any age – but as stats show, come your 40’s it’s even more important. According to 2017 data for the 40-49 age bracket:

  • Sovereign paid out over $16.8 million in Trauma Cover claims, and more than $13.6 million in Health Insurance claims
  • Cancer was the top reason for claiming, with approximately $15.5 million claimed across Trauma, Health, Disability & Income Protection – plus another $16 million claimed on Life Insurance policies
  • Mental health was the number-one reason to claim on Disability and Income Insurance, with over $4 million being paid out to Kiwis.

How do the 40’s compare to the 30’s?

As data shows, New Zealanders in their 40’s are receiving much-needed financial support from Health Insurance, Income Protection and Trauma Cover. And if you compare these figures to the under-40’s, it’s clear that claim values rise significantly between 40 and 49 years old. In 2017, New Zealanders aged under 40 received:

  • Over $6.2 million in Trauma cover claims
  • Again, cancer was the top reason for claiming, with about $7.2 million claimed across Trauma, Health, Disability and Income Protection – plus $2.9 million claimed on Life Insurance policies 
  • At $1.8 million, mental health-related claims were the second top reason for claiming on Trauma Insurance, after musculoskeletal issues.

What about the 50’s?

We often hear people in their 40’s say that they are waiting for the ‘big five-o’ before taking out Insurance – the thought being that, when they turn 50, their health may be more likely to decline.

However, Sovereign stats show that the total amounts claimed by people in their 40’s and those in their 50’s are not far apart. Using Sovereign’s Trauma Cover stats for 2017 as an example, here are some interesting findings:

  • Kiwis aged 40-49 claimed a total of $16.8 million on Trauma policies, while people aged 50-59 claimed about $20 million – not too much more, especially compared to the $6.2 million claimed by under-40-year-olds.
  • For both the 40-49 and the 50-59 age brackets, cancer was the main reason for claiming, receiving a total of $11.5 million and $14 million respectively – again, not a major difference.

How can Insurance help you?

As we have seen, Insurance can help New Zealanders in many ways. But by putting it off for too long, you may find yourself working against an under-resourced public system – while also being more likely to develop a physical or mental condition that might make it difficult to take out cover later in life.

Feeling young and healthy? Even better – Now is an ideal time to act. Health Insurance is there to cover the costs of private treatments, helping you get better faster. Trauma, Mortgage and Income Protection can provide crucial support while you are recovering. And of course, Life Insurance can protect your loved ones’ future from life’s uncertainties.

After all, if you think about it, Sovereign’s annual payout across all types of covers (at over $300 million) equates to more than Lotto pays its winners each year – and that’s just one provider. It goes to show how important Insurance can be in times of need.


For expert, personalised advice, please get in touch. Our team of friendly Insurance Advisers have a range of providers to choose from, to help you safeguard your tomorrow, today.

Complete this form and an Insurance Adviser will get back to you for a no-obligation, 15 minute chat. 

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

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