Life is beyond our control. Do you have Life Insurance?
Life Insurance allows us to control the financial impact our death will have on those close.
Financial Services Council of New Zealand press release dated 11 June 2019 states “Nearly two-thirds of those surveyed had checked car and home contents insurance in the past few years, yet only 20% had considered the financial implications for other members of their family if they died.” ¹
Statistics New Zealand state a total of 33,339 deaths were recorded for the year ended December 2017. ²
The Benefits Of Life Insurance
Abacus Group helps you to protect the lifestyle you and your family have today, no matter what happens tomorrow. Your loved ones left behind can utilize the funds provided by Life Insurance for things like:
- Mortgage repayments
- Day-to-day living expenses
- Raising children
- Protecting retirement savings
- Paying for funeral expenses
The Definition of Life Insurance
Life Insurance is a predetermined amount you insure your life for with an insurance company. The insurer pays the predetermined amount to your beneficiaries upon your death.
In exchange you pay the insurance company a pre-determined premium. Premiums are payable annually, monthly, weekly etc. depending on your agreement with the insurance company.
Premiums are affected by the type of Life Insurance you choose – Rate for Age vs Level Premium.
Rate for Age vs Level Premium
The premium on a Rate for Age Life policy increases each year as you get older. Opposed to the Level Life policy premium which remains fixed for the period you have chosen, either age 65, 80 or 85.
Take note the premium for a Level Life Insurance policy is more expensive initially, however in the long term it can save you thousands of dollars compared to a rate for age policy.
Calculating the amount you need…
Council spokeswoman and former Prime Minister Jenny Shipley said, “Market research indicates there is no hostility to the idea of personal risk insurance. In fact most people understand its value but don’t know how much they need, or feel confident about purchasing it,” she said. “People don’t know where to obtain objective advice.” 4
Determining the right amount of cover is important, as too much cover is a waste of money, however too little could mean the people you care about aren’t taken care of.
We use a fact finding process that gives you a chance to tell our specialists advisers about your situation. At the end of this process the answer will be clear.