Are you unsure about how much life insurance you might need? Learn how to make an informed decision about your future and that of your family.
In general, life insurance is a contract between a provider and a policyholder. It guarantees payment by the insurer of a sum of money (‘sum insured’) to one or more named beneficiaries when the insured person dies. In exchange for this cover, the policyholder pays the provider what are known as ‘premiums’.
Life insurance cover offers peace of mind by ensuring that you or your family’s financial wellbeing is safe, even after you pass away. Life insurance is an important part of any financial plan, however, many people struggle with determining how much cover they need and what type of policy to choose.
In this article, we will explore the most common questions about life insurance, including how to calculate your needs, when to review your policy, and details on what options are available in New Zealand.
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Investopedia. Fontinelle, A and Battle, A. (2022). Life Insurance: What It Is, How It Works, and How To Buy a Policy. Retrieved 20/03/2023 https://www.investopedia.com/terms/l/lifeinsurance.asp
Forbes. Danise, A. (2023). How Much Life Insurance Do I Need? Retrieved 20/03/ 2023 https://www.forbes.com/advisor/life-insurance/how-much-life-insurance-do-you-really-need/