Life Insurance provides invaluable protection for NZ families.When there is a death in the family there is a lot of change, uncertainty, and surges in emotions and quite often stress.All this as members of the family cope with grieving – each in their own way.
Imagine having to deal with all this and also having unplanned, and unwanted financial pressures when a loved family member has passed away? Life Insurance can’t help with any of the human traits relating to grief; however it can remove financial stress and pressure.
Having Life Insurance in place will allow family members to plan a funeral without having to worry about the cost, take time off work to be with children, travel from overseas if required to be with other family members as well as taking care of the day to day bills and living expenses while the family re-builds itself and comes to terms with their new ‘normal’ – a family that is missing a member, permanently.
The Right Amount of Life Insurance
Having the right amount of Life Insurance is a challenge.Life Insurance coverage is not about enriching lives whenever a family member passes away, but more assisting the remaining family members and compensating them for that loss, to help them to go on to live their lives without financial pressure.
Important costs to consider when deciding how much Life Insurance you need should include the following:
- Future ongoing income requirements for the family
- Children education costs
- Retirement income for the remaining spouse
Because every family is different some costs will have a bigger impact on families than others. Consider for example a family with five children as opposed to two children.The family with five children will probably have better continuous income specifications and education expenses compared to family with two children. They may however have no debt whereas the family with two children may have considerable debt.
Because families are so different, not just in their structure but often culturally it’s really important to have the amount of Life Insurance in place tailored to the individual family – there are no hard and fast rules as to the amount each family needs how it’s structured and how long they will need it for.
It’s for the reasons above that independent advice from a Life Insurance specialist is always a good idea.