Why Do New Parents Get Life Insurance?
When you start a family, you enter an exciting world of new experiences and responsibilities.
How can new parents Life Insurance be of benefit?
New parent’s Life Insurance can be a way to protect your family’s financial security.
It’s there as the backup plan, should an event occur to disrupt your future. It can be reassuring to know the family has funding there should the worst happen.
Unfortunately, in the event of a Life Insurance claim, this means you are now a single parent.
Everything is now on you, making an income, raising the children, cleaning, paying the bills, everything is now you, daunting.
This is where the proceeds from a new parents Life Insurance claim can make a meaningful impact.
It’s a new future for you, ensuring you and your family can take the time to grieve & adapt to this new future.
Life insurance is designed to give you the time to make good financial decisions on the family’s new future.
What about Life insurance if you are already a solo parent?
As a solo parent, you already know the amount of effort it takes to raise a child on your own.
A claim on your Life insurance policy will need to provide ongoing financial support for your child.
• How long do they need this support for?
• Who will be raising them?
• What support do they require to assist with this?
Once you have decided on an amount to insure, it is very important that the ownership of your policy lines up with your wishes clearly and precisely.
Having a Will which is a legal document that coordinates the distribution of your assets after death and can appoint guardians for minor children.
Common additional features for new parents Life Insurance
Of the major providers of Life Insurance in NZ there are some common additional features that are similar.
Terminal Illness
Should you be diagnosed with less than 12 months to live then the full balance of your Life Insurance will pay to you to use as you see fit. (a question I have been asked a few times, is ‘if I live longer than 12 months do I have to give it back?’ the answer is no, once paid to you it is yours).
Funeral benefit
This is an amount of up to $15,000 which is paid to the owner of the insurance policy.
Ownership of your policy – we covered this in our August newsletter. It’s important to note, this is paid from the benefit you insure. This is an early payment to help fund the final costs.
Grief Support benefit
When someone close to you passes away, you will be upset.
If you wish to talk with a professional to support you through this period there are funds provided from the insurer for you or your immediate family to use this.
Financial Advice benefit
You have just been paid a large amount of money.
What do you do?
If the initial intention at the time was for you to repay the mortgage and remain in the home, but after taking some time you choose to sell your current home and buy closer to the school, this means your child can walk to school instead of being driven to school, this change helps with transport in the mornings & early afternoon which takes a load off (remembering you are a single parent now).
Overall what does your child need in the event a parent has a Life Insurance claim?
What makes up your Life Insurance?
Feel free to contact me to discuss your personal circumstances.
