At Super-Advice we are about all things financial, but more importantly, helping people understand so they can get ahead financially.
In today’s blog post we are going to go over life stages where you may need life insurance and the different types of insurance.
How do you know if you need life insurance?
These are three reasons that we discuss with people about the need for insurance.
End-of-life expenses
End-of-life expenses, it costs money to pass away. If you don’t have a lot of it, a small life insurance policy can ensure that everything runs smoothly at the end.
Debt
You may have some debt like a mortgage, a life insurance policy will ensure that that debt is repaid. If you are no longer here to repay it.
Family, spouse, partner, and kids
You will want your immediate family, that has been left behind, to continue with a level of financial security that they’ve become accustomed to.
A life insurance policy can give them some financial support for a number of years, not forever, but for a number of years, until they have found their feet again and moved on.
Those are the three main reasons for life insurance.
What if I’m a business owner?
If you are in business or are a business owner there are reasons for you to get life insurance as well.
For example, business owners insure themselves. Businesses that borrow money, insure the primary income producer, a key person, within that business to make sure that they can continue if the key person is no longer there due to death or disability
What types of Insurance are there?
There are a whole load of insurance products that fall under the life category.
Income Protection
If a doctor writes you off work and you’re unable to work due to an accident or illness, an insurance company will pay a percentage of your salary for an agreed period of time.
Health Insurance
Having health insurance in New Zealand allows you to get private treatment.
All treatment is free in New Zealand but because it’s free, obviously there’s a massive queue, but if you have health insurance that insurance allows you to jump the queue.
Total and Permanent Disability Insurance
If a doctor signs you off work, never being able to work ever again, you can receive a lump sum that you’ve insured yourself for.
Trauma Insurance
When you get your trauma insurance you decide at the beginning how much you need, and if you need to make a claim, Trauma Insurance pays you a lump sum of money.
So if you suffer a serious serious illness like cancer, stroke, or heart attack, you get paid your lump sum.
We like to call Trauma Insurance a recovery product.
It helps you to keep the money flowing in and meet your financial obligations a bit like income protection.
Who should I speak to about getting insurance?
Generally those seeking insurance should talk to an adviser who will ask lots of questions to build a picture of that person’s circumstances, then they will make a recommendation and try to fit the insurance into a budget.
That’s a wrap
How do you feel about deciding whether or not you need life insurance?
If you need any financial help or advice please get in touch with us at Super-Advice.
