12 Apr 2022
You love your family and want to protect them. But did you know, there are more ways you can look out for your loved ones than just installing security alarms or putting up a tall fence (although that may also be important). One of the best ways you can protect your family is with Life Insurance.
But is Life Insurance worth it? What’s the best Life Insurance for a family? And what’s the best way to incorporate Life Insurance when managing finances? Families come in different shapes and sizes, so there is no single answer to these questions. However, with a bit of research and the help of an adviser, you can better understand the role Life Insurance has in looking out for your whānau.
In this blog, we’ll explore how insurance can protect your family and the best way to get it.
Let’s dive in!
Why is insurance important for a family?
When considering whether you need Life Insurance, it may be helpful to ask yourself how your family would financially get by without you. Would they be able to keep their quality of life? Although Life Insurance may not put a literal layer of bubble wrap around your whānau, it can look after your loved ones financially should something happen to you.
Sometimes known as Life Cover, options like Cigna Life Insurance can give you peace of mind that your family will be cared for even after you’re gone. This assurance can help you live life in the moment and spend more quality time with your family. Because that’s what life is all about.
What kind of families need Life Insurance the most?
In short, every type of family may benefit from Life Insurance. In fact, you don’t even need to be part of a family to reap the benefits of being covered. In saying that, there are examples of families that could particularly benefit from having Life Insurance.
No two families are the same. If you have stepchildren or you’ve married for the second time, Life Insurance can be especially important. If you’re part of a larger blended family, chances are there may be more people relying on your income to get by. Read our blog that explores Life Insurance and blended families for more insight.
Single working parents
It’s no secret that single working parents often have their work cut out for them. As the sole source of income for their family, it may be extremely difficult for those left behind to get by if something were to happen. Read our guide on Life Insurance for single people for more aspects to consider as a single working parent.
Having a child or adopting a child can be an extraordinary and exciting time. But as your family grows, so does the amount of people that may rely on you to live day to day. If your family is growing, it can be a critical time to consider getting Life Insurance or increasing your level of cover if you already have it. Read our guide with 10 practical ways to prepare for a new baby for more tips on preparing for your family to grow.
What Life Insurance options are available to families?
As we’ve mentioned already, every whānau is different. Because of this, it makes sense that there is a variety of cover options when considering Life Insurance. A tailored approach to Life Insurance can mean that you take out a policy suited to your unique family and premiums you can afford. There are two main Cigna Life Insurance products with various cover options that sit within them.
This is our master personal Life Insurance policy. It can be important to consider a combination of life and living insurance cover, so Assurance Extra offers a comprehensive, all-encompassing policy. As part of Assurance Extra, you’ll be covered for:
When considering Assurance Extra, it can be helpful to start by talking to an Independent Insurance Adviser. These experts get to know you and your family to offer you a personalised insurance recommendation.
Simple and affordable, LifeOne® can pay a lump sum to your family should you pass away or receive a diagnosis for a terminal illness specified within your policy. There is a range of flexible cover options as part of this policy including:
Advanced funeral payout
Terminal illness payout
There are certain cover exclusions with LifeOne®, so it may be helpful to discuss your policy with an Independent Insurance Adviser. Otherwise, you can get an instant LifeOne® insurance quote online to give you an idea of the cost.
Choosing the best cover options to protect your family
Sure, there are handy online resources available when deciding on which Life Insurance options to protect your family. However, quizzing yourself with a series of questions can also be a good place to start. Here are some questions to consider:
Who in your family relies on your income?
Of course, the size of your family will impact the level of Life Insurance cover that is best for you. But, it may also be helpful to think beyond your direct family, for example, if you have aging parents.
How much cover can your family afford?
In an ideal world, you’ll want as much Life Insurance cover as possible to protect your family. But in the real world, you may only be able to afford a certain level of cover. When considering how much you can afford to put towards Life Insurance, it can be helpful to plan a budget to help with managing finances.
How old are you as a parent?
As you get older, the risk to an insurance company grows. Unfortunately, this may mean that the cost of cover may also increase. Your age can be helpful to keep in mind when considering cover options.
Does your partner also have Life Insurance?
It’s often recommended that both parents have their own Life Insurance policies. Each parent will have a personal history that can affect their premium. As well as that, these days it’s very common for both parents to be working. Therefore, their household may rely on two incomes.
How much debt do you and your partner have?
If something happens to you, unfortunately, your debt won’t disappear. Instead, it may be passed on to loved ones. When considering your level of cover, it can be important to consider how much debt you’ll need your Life Insurance to cover.
Do any illnesses run in the family?
Your medical history can often be a big influence on the cost of your premiums. If an illness runs in your family, you may be more of a risk for your insurer.
What is your lifestyle like?
Your lifestyle can significantly impact which level of cover is best suited to you. If you work a risky job or have dangerous hobbies, it could affect the cost of your premiums. Read our blog on how to maintain a healthy lifestyle for tips to do with health and wellbeing. A healthier lifestyle often may mean a better premium.
When considering which Life Insurance options are best to protect your family, it can be helpful to speak with an Independent Insurance Advisor. A lot of the questions we’ve covered they will ask you as well. Going over these questions before speaking with an adviser can help prepare you for the conversation. Read our guide on how to pick the right insurance adviser to help you get started.
What if your family changes?
Whether it’s your kids flying the nest, your elderly parents moving into your spare room, or an unfortunate divorce, families change all of the time. Because of this, it can be important to regularly review your insurance to make sure you have the right amount of cover for your current family situation.
You can apply to update or change your Cigna Life Insurance at any time. The cost, terms and conditions of your cover may change, but Cigna will make sure you’re aware of any adjustments. You can also change who owns your Life Insurance policy at any time. However, this change will need to be registered to be legally recognised. If you have any questions about updating your Life Insurance, reach out to Cigna or contact your Insurance Adviser.
Want to know more about how insurance can protect your family?
It’s never nice to think about what your family would be like without you, but at least with Life Insurance, you know they’d be looked after financially. If you’d like to learn more about how Life Insurance can help protect your family, it may be helpful to ask questions to an Independent Insurance Adviser. Being independent, you know that they have your family’s best interest at heart. Protecting your family with Life Insurance can help you live in the present and enjoy more quality family time. Speaking of quality time, read our blog with tips on achieving a work life balance.
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