Why should you consider getting life insurance

If you are thinking about purchasing life insurance, you are at the right place. Perhaps you feel that you don’t want to spend money on it right now or you might have other priorities.

How do you decide whether you really need life insurance?

The answer is different for everyone. Consider the financial implications on your family in case you die?

It’s advisable to explore different life insurance policies and consider its benefits before making a decision.

Consider the coverage you should buy and how much is required?  There are different types of policies and you must find one which benefits your family the most.

What you should know about life insurance?

Life insurance provides financial support to the family or loved ones after your death. A life insurance policy is a mutual agreement between you and the insurance company.

Individuals pay premium payments so that the insurer can pay a lump sum known as a death benefit to the beneficiary upon the insurer’s passing.

Why get life insurance?

The decision to buy life insurance is completely personal. However, there are common reasons why you must buy life insurance.

• Majority households have more than a single source of income. Most of them rely on dual income to maintain their lifestyle. In case they lose their  job, the financial struggle starts within the first six months of losing their income. If the provider of the family dies, life insurance provides much needed support.
• Sometimes people get insurance to pay for end of life costs. A funeral can cost around $7000 and a cremation around $6000. Insurance companies sell a permanent coverage called funeral or burial insurance to pay for these expenses.
• Individuals who want to leave their family financially secure benefit from life insurance.  In case of an absence of the family the financial legacy can be left to a nonprofit or charitable organization.
•  Life insurance policies work for benefit for business owners. They can protect the business by covering small business payrolls and other operational expenses.
•  Insurance policies have a cash value that is tax free. These policies offer a conservative return and some even allow individuals to invest in stocks and bonds where they would have a better return.

The cost of raising a family can amount to hundreds and thousands of dollars. Parents who have dependent children often face hefty costs including childcare and schooling, along with higher education fees.

All these costs along with basic necessities of life are a parent’s responsibility. If an earning parent dies, children can suffer a great deal. Life insurance allows children to be covered during this time in their lives, especially the ones dependent on you.

Couples who share financial responsibility like a mortgage might also be impacted by the death of the other. If one of them has a life insurance policy, it can help the remaining partner keep their lifestyle.

If you have a mortgage on your home, you can benefit from a life insurance policy because it will help your dependents keep the home if you unexpectedly pass.

To learn more about life insurance policies, contact expert life insurance broker in NZ.