When taking out insurance, many people want to be able to pay off their mortgage if something happens to them… others may want to cover one or two years income to give them time to recover from a serious illness such as cancer, while other people may want to leave some money for their families if they were to pass away to cover funeral costs and give their family time to grieve without any financial pressures.
Another consideration could be having an extra insurance policy that can be used to pay for your children's education. In today's world education is extremely important and a recent story in the NZ Herald estimates that it will cost almost $35,000 to put your child through primary and secondary school if they are starting this year… for a child who is born in 2015 (starting school in 2020) the estimated costs rises to more than $37,000. That does not include university studies.
Life Insurance is one of the more affordable insurances… for example a 40 year old, male, non-smoker could take out a Life Insurance policy of $80,000 (to cover the education costs for two children) and the premium would be $14 per month (quote is current as at 28/04/15).
It is important to understand the different types of insurances that are available in the market (Trauma, Life Insurance, Total & Permanent Disablement, Income Protection, Mortgage Protection, etc) and to figure out a package that not only protects you and your family, but that is also affordable. At BRAVEday our job is not to tell our clients what, or how much insurance they need, but to give them the tools to make an informed decision.