Many families place security right at the top of their priority list – they want to know that money will be there to pay their bills and that those they love are provided for if something happens. Once this priority is taken care of, it is much easier to concentrate on other priorities and get on with life.

In the event of an unexpected occurrence, what security have you got set up for your family?  Have you thought about how they would get on if you were no longer able to support them and provide for their daily needs?

Ultimately, if the worst happens and you become terminally ill or pass away, insurance such as life insurance provides the kind of foundation that will enable your family to continue in difficult circumstances.  The family mortgage or rent can still be paid; food can still be provided; and other monthly bills can be taken care of.

If you’re thinking about purchasing life cover, there are a number of factors to consider and it’s important to:

  • Ensure you get the best deal possible – both in terms of cost and what is offered. Make sure that you get more than one quote and carefully check what is being offered under each policy.
  • Decide how much cover to take out. Start by considering your housing costs, any debts under your name, education / childcare costs for your children and how many months or years of day-to-day living costs will need to be provided. You can use a site like sorted.org.nz to give you an idea of overall costs that would need to be provided for.
  • Take into account whether you want to combine life cover with other insurance(s) that might offer you discounts overall.
  • Look for clear details of what is being offered by each company – ask questions until you thoroughly understand and are able to compare with other products where necessary.
  • Check if there is an ‘age of expiry’ on the policy – this may be younger than you expect (for more details, see this page).
  • Ask if the company offers flexibility of payments offered to fit your budget. You may find that you can save money by paying annually; however, it may work better with your budget to pay monthly.
  • Consider factors that are unique to your family – like whether you want to take out cover for only yourself, yourself and your partner, or other members of the family (some policies will cover individuals age 10 and up).

Although it can often seem daunting, life cover doesn’t need to be a time consuming or difficult task.  Try not to consider it so much of a hassle that you put it off – look at it as something you can get sorted out in order to feel secure and move on to other priorities. Life insurance is a gift to your family that will provide the ultimate reassurance, and in so doing you are giving them the ability to move on with life, even when you can’t move through life with them.

PINNACLE LIFE was the first insurance company in world to provide underwritten life insurance online and is a direct provider. You can find more information on their website.

This post was sponsored by PINNACLE LIFE.

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This information was compiled by the Kiwi Families team.

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