Why Do You Need Life Insurance?
Deciding whether you need life insurance, especially when you are young, can be a difficult thing. As a result, most people wait until they are in their 40s and 50s to start exploring buying life insurance coverage when the premiums charged will often be higher. Life insurance, for most adults, is absolutely essential. Here are 4 reasons why you should consider having life insurance.
1. Financial Protection for Your Dependants
If your family or partner depends on your income, the importance of having life insurance coverage cannot be overstated. In the event of your death, your dependants would suddenly face big financial troubles.
Life insurance protects your dependents financially after your death. They can be paid a lump sum or in smaller deposits over a period of time, depending on the insurance policy. This ensures that their needs are well taken care of even in the absence of your income.
So if you have family and you are the main earner, it is highly advisable that you start shopping around for life insurance. Do not wait until it is too late.
2. Coverage of Funeral Costs
Most insurance policies in New Zealand offer several additional benefits. One of the main ones is coverage of funeral costs. Funerals can be very expensive, putting a huge financial burden on the dependants. To offset these costs, life insurance policies often pay for funeral expenses often capped at a maximum of $15,000. This coverage usually includes bereavement support.
3. Other Costs Covered
In addition to funeral expenses, some life insurance policies may also provide the following additional benefits.
• Terminal illness cover. If you are diagnosed with a terminal illness and have less than one year to live, you are advanced all or part of the insured sum.
• Children’s funeral costs cover. If your child dies from an accident or certain illnesses, you can get a partial payment.
• Cover for financial advice. If your dependents are paid a lump sum, certain policies provide cover for financial advice up to a certain limit.
4. Coverage of Major Costs
Other than basic expenses, your dependants may be faced by other major costs after you die. For example, if you have young kids or teenagers, they may want to go to college. If there was a mortgage and other loans being serviced, money is needed to keep on with payments. The same goes for other expenses such rent and hire purchase.
A good life insurance package will adequately cover most of these costs but this will depend on the assured sum, so make sure you take into account all potential expenses to reach the right figure.
One of the most important steps in finding the right life insurer is carrying out life insurance quote online in New Zealand. It will help you decide which New Zealand insurer is best for you. DiscountLife is an insurance team that allows you to compare life insurance providers in NZ. You can see what average premiums are charged by the top insurers and how far their coverage extends.
DiscountLife will help you choose the best life insurance company in New Zealand so you can get on with living your live without worrying about the future. To start searching for insurance and to take advantage of several other benefits, visit www.discountlife.co.nz today.
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