Seniors Life Insurance can seem like a confusing topic when you’re trying to decide if you need it and also try to cut through all the financial jargon. We’ve simplified everything for you so you can make an informed decision. Essentially, if you’ve been thinking about what your family would do financially when you pass away, then you’re in the right place. So, let’s get started…
What is Seniors Life Insurance?
Seniors Life Insurance in New Zealand is a type of insurance policy specifically designed for kiwis aged 50 and over. . It provides financial support to the policyholder's loved ones or estate to cover the expenses related to a funeral and other end-of-life costs, or to l help with day to day living costs.
Seniors Life Insurance is essentially a product that protects your loved ones by offering financial assistance during a difficult and emotional time, when they need financial support to continue with the standard of living that they’re used to.
It can also bring peace of mind for both you and your family, knowing that you have a Seniors Life Insurance policy in place.
How does Seniors Life Insurance work in New Zealand?
It works by having the policyholder pay regular premiums to put an insurance policy in place. In the event of the policyholder's death, a lump sum payment is provided to their beneficiaries or estate. This sum could cover the various expenses associated with a funeral, day-to-day bills and expenses, or as a gift to leave behind.
One key advantage of Seniors Life Insurance is that it typically requires minimal medical and health requirements to be eligible.
How much does it cost?
The cost of Seniors Life Insurance can vary significantly based on several factors, including your age, smoker status and the amount of cover you want. These are discussed further in this article.
How do I decide how much cover I need?
When deciding how much Seniors Life Insurance you need, there are several factors to consider. First, think about your current life expenses. Make sure to consider any outstanding debts or financial obligations you want the insurance to cover.
Also, consider your family's financial situation and your own savings. Finally, think about the cost of your funeral, which may include expenses like funeral director fees, casket or urn costs, burial or cremation fees, and other related costs.
The goal is to ensure that the insurance cover is enough to relieve your loved ones of the financial burden when you are no longer around to support them. It's wise to strike a balance between having adequate cover and avoiding over-insurance, which can result in higher premiums than necessary. Assess your unique circumstances and financial needs to determine the appropriate level of Seniors Life Insurance.
What costs are typically associated with a funeral?
Funerals and the associated planning come with several costs. The core expenses often include the services of a funeral director, who manages various aspects of the funeral, including transporting and preparing the deceased, arranging the ceremony, and providing support to the family. The choice between burial or cremation brings additional costs, such as cemetery plots, headstones, or crematory services.
Funeral ceremonies can include costs for things like venue rental, officiant or celebrant fees, and various memorial items like flowers and printed materials. Other expenses include legal fees for obtaining death certificates, transportation of the deceased, and, in some cases, catering for post-funeral gatherings. Overall, the total cost can vary significantly based on location, cultural and religious customs, as well as personal preferences. So, it’s essential to plan and budget carefully to ensure an appropriate send-off.
Benefits of Seniors Life Insurance
Seniors Life Insurance provides several benefits to policyholders and their families, including:
- Financial Support: Seniors Life Insurance offers financial assistance to help relieve the policyholder’s family of the financial burden during a challenging time.
- Cover Flexibility: Policyholders can choose the benefit amount that suits their needs, ensuring that their specific expenses are adequately covered.
- Peace of Mind: Seniors Life Insurance offers peace of mind, knowing that your family won't face financial challenges after you are gone. This allows them to focus on the emotional aspects of the grieving process.
- Tax-free, lump sum payout
With these benefits, we aim to bring you peace of mind, knowing your loved ones will be looked after during a difficult time.