WITH INTEREST RATES RISING IS IT A GOOD TIME TO REVIEW YOUR LIFE INSURANCE?
With interest rates and the cost of living continuing to rise over recent months, life insurance isn’t the first thing that pops to mind when you’re looking at ways to navigate increased living costs.
As you probably know Life insurance is one of the ways you can ensure your family’s financial security & lifestyle should you unexpectedly pass away or be diagnosed with a terminal illness. It can be used to cover things like your home loan repayments, education costs, & general living expenses but more importantly it protects your family from undue financial stress during a difficult time.
So how can life insurance help you meet rising costs of living?
For those who have life insurance policies (or any insurance policy for that matter) it is common to fall into ‘set & forget’ mentality. i.e you religiously pay your premiums without ever revisiting your coverage. Think about the years you’ve had life insurance, how often have your life circumstances changed? But more importantly how often have you reviewed your insurance needs?
Take for example your home loan. Home loan repayments are a major component when calculating your optimal level of life insurance coverage. Over the years as you make repayments to your home loan, its balance decreases, while at the same time life insurance premium will often increase. This can result in a situation where you have more coverage than you actually need. The more coverage you have the more you pay.
Also, you mustn’t forget to think about your Kiwisaver or any Superannuation funds you hold. As the years go on these balances also increase & should you passaway, your Kiwisaver funds are returned to your estate which can be used to repay your mortgage or any outstanding loans, credit cards etc.
If you’re looking for ways to navigate the rising costs of living & interest rates, have an inkling that you maybe you’re over insured, or simply want to make sure you’re getting the best possible coverage for your present situation – a insurance review is a great place to start.
Text ‘review’ to 027 5454 003 and our insurance specialist Neil will be in contact.