As financial advisers, we see the importance of life insurance time and again. While nobody likes to think about the worst-case scenario, eternal life is still something found only in sci-fi films and at this stage at least, passing away is still inevitable. Life insurance can provide peace of mind knowing that your loved ones will be taken care of in the event of your unexpected passing. Here are five reasons why life insurance is essential for Kiwis in 2023.
Protect Your Loved Ones
One of the most important reasons to have life insurance is to provide financial support for your loved ones. If you pass away unexpectedly, life insurance can provide the finances needed for your family to cover expenses such as funeral costs, mortgage payments, and daily living expenses.
Life insurance means that your family can focus on grieving and healing without the added burden of financial hardship at an already difficult time. Remember, when you lose a loved one you don't just lose them, you lose the income they were providing as well. This can be replaced in a lump sum or an ongoing monthly payment to help handle the ongoing expenses for the family.
Covering Debt
Another important reason to have life insurance is to cover debt. If you have any outstanding debt such as a mortgage, car loan, or personal loan, this can be passed on to your family to cover upon your death. Depending on your policy, life insurance can provide funds to pay off those debts, so your family is not left with that burden.
This is especially important if you are the primary breadwinner in your family. In the event of your unexpected passing, your family may struggle to make payments on those debts without your income. Life insurance can provide a safety net to ensure your family doesn't fall into financial hardship and can keep paying the bills.
Education for Your Children
If you have children, you likely want to provide them with the best education possible. Life insurance can help make that a reality. In the event of your passing, life insurance can provide funds to cover education expenses such as tuition, books, and living expenses.
This can be especially important if you have children who are still in school or who will be attending university in the near future. Life insurance can ensure that your children are able to continue their education even if you are no longer there to support them.
Peace of Mind
Knowing that your family will be financially secure can alleviate some of the stress and worry that comes with thinking about the future.
It can be difficult to think about the worst-case scenario, but having life insurance can provide a sense of security and comfort knowing that your loved ones will be looked after. You'll be able to rest easy knowing that your family will be able to maintain their lifestyle and be financially secure in the event of your passing.
Affordability
Life insurance can be more affordable than you might think. Many people put off getting life insurance because they assume it will be too expensive. However, life insurance policies can be tailored to fit your budget and needs.
Often, life insurance premiums can be lower if you are in good health and lead a healthy lifestyle. So, don't let cost deter you from getting life insurance especially as the cost of not having life insurance can be much higher in the long run.
Life insurance is an important part of financial planning for Kiwis. Whether you have a family, outstanding debts, or simply want peace of mind, life insurance can provide financial security for your loved ones in the event of your unexpected passing.
It's a small investment that can make a big difference for your family. And remember, getting life insurance doesn't have to be a daunting task. Professional advisers like us can help you navigate the options and find a policy that fits your budget and needs.