life insurance with prof von puppet on the importance of life insurance
Term Life vs Whole of Life – Term life insurance is the more common type of life insurance on the market today. It is of no cash value (unlike the Whole of Life or Endowment policies). A Term policy is in place for as long as you pay the premiums. There is no investment option with this type of policy, there is only death cover, and for this reason it tends to be cheaper. If you have a Term policy it is only of any monetary value upon a claim (the policy holder has passed away). Whole of Life policies were popular during the 1970’s and 1980’s along with Endowment policies. These are a mixture of insurance and investment, and are quite complicated with many aspects to them. They can also be difficult to evaluate and the investment portion can be quite limiting.
The Monthly Premium – as mentioned above there are many aspects of a Life Insurance plan that can significantly affect the cost that you pay for the insurance policy each month. If you are looking to take out a Life Insurance policy as well as another policy, such as an Income Protection policy or Health Insurance policy then you will usually be able to make significant savings if you choose to ‘bundle’ your policies together. Each of our expert insurance advisers at imcovered.co.nz is experienced and knowledgeable on what each of the reputable insurance providers offer to customers and are well informed to be able to work with you to ensure you work out the right plan for your budget. We wish to make insurance financially accessible to all New Zealanders.
Why Having A Life Insurance Policy Is Important
A lot people have strange ideas when it comes to life insurance. Believing that it is wasted money since they won’t see any benefits themselves, they choose to omit purchasing any. Other people cancel their existing policies thinking that they will be able to reinvest this money elsewhere to become more financially stable.
Both of these ideas are mistakes that many people regret making later on in life. Should the worst happen and they die without having an insurance policy in place, their families will pay the price for this decision. To understand why canceling a policy or not purchasing one is a mistake, consider these reasons why life insurance is important.
After a death, the family members will receive compensation when a policy is in place. This amount is generally more than what was paid out in premiums. Life insurance means that the cost of a funeral and related medical expenses will be covered. Your family will not have to dig deep into savings to cover these costs.
Because of the life insurance payout, your surviving family members will be able to live the life that you wanted for them. In short, a life insurance policy allows you to take care of the people that you love even after you have gone. This is not the case for people who have chosen not to carry a policy.
Getting the Right Life Insurance Policy
To ensure that you have a large enough policy, do some calculations. Find out how much a funeral costs in your area and figure out the cost of health copay requirements. The minimum cover should be enough to provide enough money for these expenses plus provide an additional amount to help your family get through the first few months without you and the income that you have provided,
Instead of revoking a life insurance policy because it is more costly than you can afford, why not look for a better rate with Life Insurance 360. Check out other insurance companies to see how much coverage would cost you. It’s worth a look when you start thinking about how much some financial help would mean to your dependents.