Considering Life Insurance?

Becoming a parent is a huge, life-changing event. Suddenly you have a child that depends on you to keep them safe and ensure they have everything they need to live a happy and healthy life...

Protecting your family's future
As you busily navigate through a host of important decisions and responsibilities in your new role as parent, one of them might be whether it’s a good time to consider getting (or reviewing your existing) life insurance.

Does life insurance work for your family’s budget?
Having children can introduce new financial pressures into your life. If you are considering life insurance, one of the main questions you might have is how to fit it into your budget. While there is no one-size-fits-all approach to choosing or structuring life insurance cover, a financial adviser can help you balance cost by assessing the amount of cover you may need and how to structure your cover in the most effective way for your individual situation.

Some of the things a financial adviser can discuss with you are how much debt you have, what bills and living expenses you would leave behind, and how you would want your children cared for and educated.

Which parent should get life insurance?
Often new parents can be reduced to one income if one parent chooses to stay home and care for the new addition to the family.

If you’re in a situation where your family is financially dependent on the income of a sole working parent, it may seem to make sense to insure the working parent. But it’s also important to consider how losing a caregiver would impact your family. Would someone else need or want to stop working to take care of your child? Would you have family support, or would you need to pay for childcare?

It’s worth thinking through these different scenarios to understand how much insurance you might need to cover the contributions of each parent or caregiver. That can be the value of seeking financial advice that is relevant to your individual situation.

AALIFE.CO.NZ  

The information in this article has been compiled from various sources and is intended to be factual information only. Full details of AA Life Insurance policy terms and conditions are available from AALife.co.nz. For advice on product suitability, please contact your financial adviser. While we take reasonable steps to ensure that the information contained in this article is accurate and up-to-date, it is subject to change without notice and we cannot accept any responsibility or liability in connection with your use of or reliance on this article. AA Life insurance policies are brought to you by the New Zealand Automobile Association Incorporated (NZAA) and underwritten by Asteron Life Limited. Policies are subject to terms, conditions, exclusions, and limitations.