Ensure your family or business can manage financially if the worst were to happen
What is Life Cover: In simple words, life insurance provides your family with a lumpsum amount in case you pass away due to any unfortunate event or are diagnosed as terminally ill.
When do you need personal Life Insurance?
With life cover in place you can live stress free when it comes to the financial security of your family or loved ones, you should have life cover to cover the following:
- • Cover your mortgages: If the unfortunate were to occur and you are not with your family it would mean they will still have roof over their heads and do not have to go through the stress of paying mortgage instalments.
- • Cover your debts/personal loans or any short or small term loans: Nobody wants lenders at their doorsteps continually requesting family members to pay off any outstanding lending amount in your absence.
- • Funeral costs: On average a funeral in NZ can cost anywhere from $12K up to $15K
- • Repatriation Benefit: If you were to pass away outside of NZ, it will cover the cost to bring your body back.
- • Maintaining the Same Lifestyle: In your absence with the claim money your family can use it to maintain the same lifestyle which was made possible with your income.
- • Income Replacement: In your absence with the claim money your family can use it to manage day to day living expenses.
- • Children Education: In your absence with the claim money your kids can use it to bear educational expenses and do not have to compromise on their aspirations.
- • Terminal Illness Support: If you are diagnosed with a terminal illness and are unlikely to live for more than 12 months, you can have access to an early life claim payment. This option allows you to manage or allocate the claim amount for your family as well as fulfil your wish list while you are still there.
- • Legacy: If you want to leave behind inheritance for your family in terms of financial support and security, this is helpful if you do not have lot of wealth or savings at present.
Additional Benefits with Life Insurance:
These options are built into your policy, and you don’t pay any additional premium on it.
- Funeral Support
- Parents Grieving Benefit
- Special Events Increase Option
- Financial and Legal Advice Benefit
- Counselling Benefit
- Premium Holiday Option
Add-on Benefits/Optional with Life Insurance
These options are available as rider in your policy, and if you choose to opt for it you pay an additional premium for it.
• Future Insurability Option: This option allows you to increase your cover by a specific amount and percentage on your policy at a particular anniversary year without any financial or medical evidence.
• Waiver of Premium Option: If you choose this option, you do not have to pay premium on your policy and keep cover running if due to any sickness or injury you are unable to work. This cover has a waiting/stand down period starting from 4 weeks and payment term of up to 70 years of age.
• Premium Conversion Facility: This option is a gem feature and allows you to fix your premium till a certain age starting from 5years till age 100. Life cover is available on three premium structures, Rate to age/Stepped, Hybrid and Level.
1. Rate to Age Option: With this option premium on policy increases every year and after a certain age premiums become so high the policy can become unaffordable to keep. Premium on this policy begins with a lower value but increases every year. This type of structure is suitable if you want to keep life cover for a short term only like to only cover your business loan.
2. Level Term Option: With this option life cover premium does not increase every year and is fixed and guaranteed till selected age. Common age options available currently are 10 Years, age 65, age 80, age 100. This option is suitable if you want to keep your policy for lifetime or for long term, this allows you to do budgeting and you know for how much cover worth you are paying what premium. This will be helpful for you if you want to leave your family an inheritance/legacy. Premium for this structure begins with higher amount but is a better option then rate to age for most age groups as it saves you a lot in terms of accumulated premiums. Some Insurers currently also have an option wherein your policy will continue after level age 100 premium structure without paying premium.
3. Hybrid: With this option you can keep your life cover partially on rate to age and level. This is a suggested option so that you are not paying over on your insurance premiums and can plan out what covers to keep till what age.
Available Life Insurance Options:
• Income Benefit Option: This option is suitable if you don’t want the full amount of life cover as a lumpsum amount but rather want to provide your family with a specific monthly payment for a particular chosen term.
• Accidental Death Benefit: This option only pays a lumpsum amount to your family in case you pass away due to an accident. This is suitable to individuals who are unable to get covers because of their medical condition.
Other Important Consideration before taking out the cover:
• Worldwide Cover: Please check the cover which you are going for comes with worldwide coverage so that if you decide to move to any other country in the future you can still retain the policy.
• General Exclusion on policy: Suicide or self-harm within 13 months is a standard exclusion for life cover, do check if there are any other general exclusion apart from this.
• Financial Strengths of Insurer: Financial strength or rating of an insurance company is quite important, the better the rating the better assurance it provides you in terms of financial stability and ability to meet its ongoing insurance policy and contractual obligations. You can check ratings on Standard & Poors, A.M. Best Co. It goes from excellent to Poor AAA being the highest and D being the lowest.
• Listed Built in and Optional Benefits: As mentioned above your policy ideally should have all the explained benefits as built in or optional, if your policy does not have it means it is inferior to available options and you should review it immediately.
• Medical Financial Disclosure: Medical and financial disclosure is crucial for your policy and any intended or non-intended non-disclosure can lead to a claim decline. You should disclose everything in terms of your medical history till your covers are in place.
• Will & Ownerships: It is advisable to place your policy in your will and mention how the amount is to be distributed amongst your loved ones so that there is no dispute at the time of claim. Policy ownerships are quite important, and you should not have single ownership/beneficiary on the policy as it will create a hassle at the time of claim.
How to Claim:
• Inform your broker or insurance company immediately, even if you are in doubt about a claimable event, do not hesitate and place your query.
• For funeral cover claim amount you can just provide with the Funeral house confirmation.
• For terminal illness claim, the insurance company would require a confirmation from treating doctor stating how long it is that you are likely to live.
• Death certificate is a must and insurance company may ask for the coroner’s report or policy report depending upon death circumstances.
Why Choose Us:
• Global Financial Services has been in the industry since 1999 working in best interest of customers.
• Our insurance advisers are highly qualified accredited and experienced, our advisers are salary based and they only do recommendations suitable to your personal requirements and lifestyle, so you know you are in good hands.
• We always provide our customers with best/ highest quality products and services that match their financials goals.
• We help customers at all stages like, claims assistance, loading or exclusion review & policy servicing.
• We do an annual review for all our customers so each year covers can be assessed based on the current needs.
• We assist you and your loved ones while you are there and in your absence.
• Our services are free of charge (certain T&Cs apply), please read our disclosure available for full information.
• Our services start from need assessment and goes for a lifetime. We walk along with you for your entire insurance journey.
• Global Financial Services is one of the most awarded and renowned broker.
• We work with major insurance companies available in the market to give you the choice to compare your insurance premiums.
• We also aid clients whose policies are not originated by us.
So, what are you waiting for? In the end it does matter! Reach out to us immediately to assist you in your insurance journey.