COVER FOR LIFE
INSURE YOUR LEGACY
Life insurance pays out a lump sum if you die or are diagnosed as being terminally ill. This money can be used to look after your family by providing them with money to replace the income you bring in as an earner, or to pay for the unpaid work you do around the home. It can also be used to eliminate or reduce debt, both personal and business debt. It can also provide a legacy, or head start for any children left behind.
This is a wonderful way to ensure that you are able to allow your beneficiary to move forward through their grief without having to deal with mundane practical concerns – and can be tailored to ensure that your family is taken care of well in advance.
Life insurance can help you to:
- Make sure your family is financially secure should you pass away.
Replace your income if you are unable to work.
- Pay your mortgage or your rental costs.
- Cover you for Major Illness including cancer, stroke, heart attack etc.
- Provide for the dreams that you have for your children’s future.
- Reduce or completely eliminate personal and business debt.
Your Life Insurance may be able to help you if you are terminally ill or if you have an illness that requires aggressive or ongoing treatment. Having Living Benefits written into your Life Insurance policy allows you to access funds to pay for treatment expenses or palliative care while you are still living. In essence, this would mean you are the beneficiary of your own Life Insurance.
This is a way to ensure that if you were to contract a chronic, critical, or terminal illness your family would not suffer the burden of the often substantial costs that can be accrued under these circumstances.
PREPARING YOUR PAPERWORK
Each Life insurance policy has a nominated beneficiary – some have more than one. A likely choice would be a spouse or children, but some policyholders choose to leave their Life Insurance lump sum payout to a charitable organisation, a business partner, or even a school.
Whomever you decide should be the recipient of your Life Insurance, it’s very important to have your paperwork in order. You must be sure your premiums are paid up to date and that your beneficiary understands how to make a claim successfully. Most claims are paid out fairly rapidly, around the 30-60 day mark from the date of filing. It’s worth noting that you can’t name a child as a beneficiary and that a payout may be denied if there are any fraudulent statements in your filed documents.
You may also have a claim denied if death is ruled a suicide, and a suspicious death will likely result in delays while an investigation is ongoing – this protects the policyholder from becoming the target of a nefarious beneficiary.
Why Hood Insurance Brokers?
in NZ General Insurance Services
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