Life insurance and why you need it.
Life Insurance is not just about what happens if you die, it’s about what happens if you don’t.
Understanding Life Insurance can be hard when you don’t have the right person or information to help you, and often it is put into the ‘too hard basket’. There are lots of different types of cover and plenty of things to consider, so it’s always a good idea to talk to an adviser for help understanding your options.
Having life insurance is a good idea if you have financial obligations that mean your loved ones would suffer if you weren’t around to pay for things like the rent or mortgage, the groceries, or your kids’ education. Having life cover means paying for something that may never happen. In fact it means paying for something that you REALLY hope won’t happen.
Depending on your life stage, getting your insurance right is key for peace of mind and protection for you and your loved ones. As a trusted insurance adviser, I conduct a full needs analysis on all my clients to ensure you get the cover that you really need.
Life Insurance is usually broken down into the following policies, but each person has differents needs and therefore will require different levels of cover within these policies. This should give you a good idea about what to expect when going through the options for your cover.
Life
Life Insurance pays a lump sum of money if you pass away or become terminally ill. It is designed to help your family pay costs that you would have helped with if you were still alive. It can be used for any of the following:
Ensuring funds to cover funeral expenses
Providing funds to family members after passing
Clearing debt such as credit card, personal loans, mortgage
Paying for childcare support if the person who passed away was the primary income earner
Providing future financial support for children
Some people who are terminally ill choose to access a portion of their life insurance to help with the cost of treatment or to tick experiences off their bucket list
Trauma
Recovering from a serious illness, injury or medical procedure takes time. Trauma Recovery Insurance provides you with a lump sum payment to help financially while you recover. It can cover medical events, conditions and surgical procedures including many types of cancer, heart attack and stroke.
Most people use Trauma Recovery Insurance for:
Paying for their spouse or family member to take time off work, so they can provide support and care at home
Paying for additional or alternative treatments that may not be covered by the New Zealand health system or health insurance
Cover additional expenses such as childcare and travel to medical appointments
Reduce debt such as mortgage or credit card payments
Take time off work to rest and recover – or choosing to work reduced hours
Mortgage & Income
Your income is often your biggest asset and losing it can turn life upside down. If you’re unable to work—either temporarily or permanently—because you’re sick or injured, Mortgage & Income Protection Insurance will provide you with money to live on as a monthly payment while you’re not receiving your salary or wage, or to suplement ongoing income.
As an adviser, I will be able to offer you a broad range of policy options and select comprehensive cover that suits your specific needs. Also, one of the other very important differences with using an adviser is the degree of underwriting that you will receive. An adviser-sold life insurance policy includes comprehensive lifestyle and medical underwriting, while online policies often have higher level, limited underwriting. That means that the cover is sometimes more limited, or if you have a pre-existing medical condition your application might be declined online where an adviser-sold policy could be tailored more for your circumstances.
It’s also a smart idea to change your policy if something “big” happens in your life – like if you get married, have a baby or buy a house. Life Insurance isn’t a set and forget product, that’s why having an adviser is so important – I will be here to help you through the years and ensure you are always covered!
