Life can be busy, crazy, and unpredictable. You take twists and turns, learning as you go. As life speeds ahead (sometimes a little too fast!), we often come across significant milestones that affect our way of thinking. Sometimes, this can include thinking about our financial situation or the financial situation of someone close to us. This may be when you stop and think, should I be covering myself and my loved ones with life insurance?
That’s where we can help. We obviously, think life insurance is important (it’s why we do what we do), but here’s a little more information about why there are certain points in your life that you should really consider the benefits and importance of life insurance. If you’re interested, keep reading.
Do I need life insurance if I have a mortgage?
Congratulations, you’ve just bought your own home. It’s a huge achievement but often accompanied by a large mortgage. With the housing market as it is in New Zealand, it’s likely (although not impossible) that you’ve bought your home with someone else. And this is where life insurance should be a topic of discussion. Life insurance can ease the burden on your family and loved ones if the unexpected happens. This means that the policy payout can assist your partner, family, friends, or loved ones cover the mortgage and bills if you’re not there to do your share. It ensures your loved ones have a place to call home (with electricity) during a hard time and into their future.
Why do married people need life insurance?
Tying the knot and getting married is an incredible milestone that shows how much you love each other and your commitment to the relationship. But as this new chapter begins, your financial situations often combine, and you become one financial unit. In the unfortunate event of the worst happening, the financial responsibilities left behind can be daunting, overwhelming, and stressful. So when considering shared household expenses and budgets, consider if the worst-case scenario happened: would you need a financial helping hand?
I’m a parent - should I have life insurance?
If you’ve read the above, you already know the importance of life insurance when having large debts (like a mortgage) - especially if you’re finances are joint with someone. So, you can guess what we will say if you have children or dependents relying on you. Let’s start by laying out the facts - The average cost to raise a child from birth to age 18 is $265,680. This is a tremendous amount of money and a significant cost that can increase quickly, especially depending on your parenting style, lifestyle, education and activity choices! So, the question becomes, if there was a sudden or accidental death, would your loved ones need financial aid to ensure your children or dependents' youth or life wasn’t affected? The payment of a life insurance lump sum can help cover the costs of raising and looking after children or other dependents - whether it be education, clothing, entertainment, food or something else. It’s important to know that your family and loved ones will be financially protected during those challenging and hard times.
We all know life is unpredictable and doesn’t always go the way you’ve planned. Change is hard, especially when it’s unexpected. Life Insurance is here to ease the pain and burden and provide financial support during a time of loss, offering a helping hand to your loved ones when they really need it.