Life insurance provides a lump sum payment in the event of death. This lump sum can help reduce debt, pay for final expenses, create an investment fund to generate ongoing income, enable business ownership to be restructured or provide an inheritance or donation, among other things. The purpose of the funds is entirely yours to decide.

Below are some examples of benefits included in such policies that vary from company to company.

Early payment of benefit

Depending on the sum insured and the complexities of an estate it can take some time before the proceeds of a policy can be legally released. To assist with immediate expenses while the process is completed, the bereavement support benefit allows $15,000 of the Life Cover to be paid out immediately upon notification of death.

When the news is bad

Your cover can be paid out early upon diagnosis of a terminal illness. While this is not something any of us want to think about, having access to these funds at this time can help prevent financial stress from compounding the obvious emotional stress at such a difficult time.

Bringing your loved one home

Should you pass away while travelling, working or living overseas, the repatriation benefit allows early payment of up to $20,000 of the Life Cover to reimburse the costs involved with returning to New Zealand.

Expert assistance

If you or your family would like assistance with managing the proceeds of a claim, your Life Insurance benefit provides a financial and legal advice benefit which reimburses the costs of a financial planner and/or lawyer up to a maximum of $2,500, payable in addition to your Life Cover.

Funeral support for your children

Should a dependent child under the age of 18 pass away while you are covered under this benefit, you will receive an automatic funeral support benefit, which is payable in addition to your Life Cover. The amount payable for children between the ages of 10 and 18 is $3,500, or $2,000 (less any other amounts payable) for children under 10 years of age.

Special events increase

There are a number of events which can trigger a need to increase your cover. The special events increase benefit allows your Life Insurance to be increased (within limits) without further health assessment for the following life events.  This type of benefit is very useful, especially if your health changes and deteriorates, you are able to increase your cover without evidence of health using one of the following events.

• Marriage or civil union.
• Divorce or legal separation.
• Becoming full-time carer for a dependent relative.
• Birth or adoption of a child.
• Taking out or increasing a mortgage.
• A dependent child starting full-time tertiary study.
• An increase in annual salary.

This is one of the reasons that having yearly reviews is important, so you can keep on top of your needs and life events.  Please feel free to contact us if you would like to review your current policies as I have some of the best life insurance companies in New Zealand.

Life Insurance Summary

The above benefits are summary examples only and may not be a full list of benefits which may be available to you.  The exact types of life insurance cover and benefits will change depending on the insurer and the specific policy. Please contact us for a comprehensive list of benefits available.