Life insurance is primarily designed to look after the people you leave behind. While no one likes to think about their death; like taxes, it is one of life’s certainties. Taking out life cover isn’t about leaving your partner with a lottery win if you pass away, it’s about covering those expenses you won’t be around to contribute to, such as:
- Funeral costs – the average funeral in New Zealand costs between $8,000 – $10,000.
- Personal debt
- Paying off the mortgage – many households need to reduce their debt quickly if they go from two incomes to one.
- Providing extra income for your spouse – partners often need extra support while grieving. This also allows them time to make new plans for the future.
- Providing future support for your children – e.g. secondary or tertiary education, helping with a deposit on a first home, etc.
- Paying for increased childcare costs – especially if you’re the primary caregiver. People often underestimate the financial impact of losing a major caregiver in their family.
Put simply, life insurance gives you the peace of mind that your family won’t have the burden of financial stress while grieving and preparing for the future.
If you’d like to find out more, give us a call on 0800 222 511 or email us at risk@grouphealthandlife.co.nz