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Life and death Insurance for financing your death

After you pass on, YOU may not be too concerned about any life and death insurance policies – but your family will be. And it’s reassuring to know that if you do pass on, your family will at least be financially secure.

And even if you’re the stay at home mum or dad, you too have a financial ‘value’ to the family. If you are no longer there to look after your children, your partner will need to pay for child care and maybe even housemaid services to keep the family home functioning. So both partners in a family should obtain life and death insurance coverage.

How much? Well that depends on what you’re prepared to pay in terms of insurance premiums and what costs your family will need to cover in your absence. Is there are mortgage to be repaid? What are your lifestyle costs?

Discuss your needs and circumstances with an insurance agent to get the best deal. You can often combine other insurance policies such as income protection insurance to get an even better deal.

As well as a life or death insurance policy, also consider the following:

  • Funeral Plan – equally important for your grieving family, having a funeral plan will ensure that your family won’t be out of pocket for funeral expenses. Alternatively, you may just want to save the money yourself and keep it in a separate account.
  • Last Will and Testament – It is very important to keep your Last Will and Testament up to date [particularly if you have children] and in order – failure to do so may leave your finances and assets tied up for years, leaving your family with nothing and worst still, leaving your children in limbo if both you and your partner pass on. Make sure the process of distributing your assets and looking after your children goes as smoothly as possible.
So life and death insurance is about setting up your family for their life in the event of your death.
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We are not certified financial planners or advisors. The information in this website is general information only. Always consult a licensed financial planner before making any finance or investment decision.

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