Welcome again to our blog! When someone is really looking for the right option for themselves and their family, it becomes overwhelming when we start to consider options available to us.
Lets look at it; Banks, Insurance companies and then the others which sell over the phone!
The big question is – are you getting advice from someone who is qualified to give you the advice. Is the person giving you advice is really addressing your needs. Have you had a comprehensive discussion about your needs?
Have all those needs addressed in the statement advice given to you.
This is the surest way to find out how much insurance you need. Get a financial adviser who has some experience and understands your situation provide you with the much needed advice for insurance.
However while we are addressing this topic let us list out a few things that you need to look at while calculating how much life insurance is needed.
- Funeral Cost ( where, accomodation, travel cost, mode etc)
- Pay off all debts
- Pay off all gaurantees and liabilities ( If in business average tax proposition)
- Income requirement ( how much income will be needed for how long)
- Inheritance or lump sum kick start for children/grand children
- Childcare cost
- Retirement fund for spouse
- Estate costs (Trust, restructuring etc )
- Suspense fund
- Travel fund
The list can be quite extensive depending on your circumstance but the above just gives you a good starting point. Frankly after an age of 55 we find people have an extensive list since its past this age that most would have a broader spectrum of protection. Generally at an age of 30’s or under the focus is usually on the here and now, which usually is the pitfall.
Most common mistakes made are as follows:
- I need my mortgage paid off
- I need some money set aside for my kids
- I need funeral cost paid
Generally the above list in Auckland may mean $450,000 elsewhere it New Zealand may mean $350,000 averagely.
The real problem after mortgage is paid rates, insurance, maintenance, bills linked with the house that is usually $500-$1000 per month is not accounted for. After the funeral the bereavement period varies from person to person and this may not be available in the absence of money.
So here is the thing before considering how can I get cheap life insurance think about where can I get the best advice.
Call us to discuss your needs free of charge at 0800 456427