Facing the prospect of one’s death is never a fun topic, but discussing what happens after you die is one of life’s necessary evils says Alysha MacKenzie of Zest Brokers.
Life insurance is one of Alysha’s specialties. She says it is something often overlooked by young couples.
“Let’s face it, most of us think we’re immortal in our twenties. Then life moves on, we get married, have kids, buy a house and all of a sudden we have commitments.”
It’s what happens with those commitments if you become seriously ill or after you die that then becomes an issue, says Alysha.
“22,166 new cases of cancer were registered in New Zealand in 2014” she says. “It’s horrible to think that you might be one of those statistics, but what’s even worse is the thought of your family being left to fend for themselves.”
The cold reality of life insurance is that no one buys it for themselves. Life insurance is about protecting your loved ones.
What’s your number?
Most providers will let you choose the sum that you want your family to receive, says Alysha. However, the exact number will vary depending on your personal circumstances.
“When working out how much cover you want you need to figure out how much will repay your debts first,” she says. “This can be your baseline, and anything beyond that is how much your dependents will need to continue to live.”
Alysha says different life stages dictate how much you should allow, which in-turn will adjust your premiums.
“A 50-year-old with no kids at home, needs less cover but then again their premiums may be higher because of their age.”
It’s complicated stuff, but the good news is that working through a broker like Zest Brokers is entirely free.
For more information contact alysha at alysha@zestbrokers.co.nz.