Do I Need Life Insurance? Probably—Here’s Why

Why buy life insurance?

To think about your own death is generally considered a little morbid; it’s a subject that many people—especially young and healthy ones—prefer to avoid. However, planning for all eventualities is important. Life insurance is a key component of good financial management. Even the healthiest of people can run into unexpected circumstances: imagine a man in his forties who eats a plant-based diet and runs every day being handed a cancer diagnosis or being hit by a truck on a pedestrian crossing. It can happen, and it does.

The right life insurance allows things to run smoothly for your loved ones should you pass away. There are many options out there being sold to Kiwis, but each situation is unique: different risks, different goals, and different levels of coverage desired. For this reason, an experienced insurance broker is a huge asset. Click here to read – Why Do you Need Life Insurance For Business

Here’s how life insurance and related insurances can help you plan for all possibilities:

Your dependents will be looked after

Number one on the list of people to consider when planning for an unexpected death are children or other dependents—those who rely on you to provide for them. Most parents and caregivers are motivated to ensure that those in their care are well looked after when they pass on. Life insurance allows you to rest assured that dependents will have enough to live comfortably, and depending on the policy can even set them up very well for future large expenses like tertiary education.

For a lot of clients, making sure their kids will be financially secure with or without them is a primary reason for purchasing life insurance. However, it’s not the only one; this type of cover is also important for those without dependents to consider.

Your spouse will have time to adjust

Losing a husband or wife is traumatic, devastating, and disruptive. Doing it while faced with financial worries due to the loss of their income adds another layer of difficulty to the loss.
Life insurance offers a buffer for the surviving spouse, replacing the income of their deceased partner to reduce financial pressure at a vulnerable time. With the right policy to take up some of your financial responsibility for a while, your spouse or significant other will have time to get used to their new situation without having to worry about living costs.

Your debts will be paid

Losing income is one thing; being saddled with sole responsibility for a large debt is another. Life insurance can pay off shared debts—often this means a mortgage—to reduce living costs for those left behind and take away a financial burden. Paying off any debts for which they are jointly responsible is a fantastic gift that you can leave your loved ones.

Your final expenses will not cost your loved ones

Dying can be a pricey business. Funerals tend to run too many thousands of dollars depending on the type of celebration you or your family would like to hold. Coffins are expensive, burial is expensive, and so are the details like catering and flowers. Although New Zealand has long since done away with “death duties”, there are also things like probate and estate administration costs to think about. A friend or family member’s death is difficult enough to get through without the burden of paying for a funeral and other end-of-life expenses!

Runacres Insurance is a team of New Zealand-based insurance brokers who are dedicated to finding the best cover for Kiwis. Backed by NZBrokers, we offer quality advice and guidance to anyone seeking insurance—from life insurance and other personal covers to business insurance in specialist industries. Proud recipients of many industry awards and supporters of local sports teams and creative organisations, the Runacres team are locals who support other locals. And we pride ourselves on providing a personalised and highly customised insurance and risk service. Let us help you find peace of mind.