Why Having Life Insurance Matters

Family with Newborn Why Having Life Insurance Matters

Let’s be clear, life insurance really is not about you and your life. Life insurance is really about what happens to your family after you are gone. It is a safety net to help them get through what is sure to be a very difficult time. Your family will be upset by your loss, but they will also need to be making a lot of arrangements and decisions that they wished they didn’t have to make.

Decision Making

What if your family had to make decisions when you don’t life insurance? We spoke to a friend, that preferred not to be named, about an experience they had when one of their parents passed away suddenly and didn’t have life insurance. She said,

“Our family was already in debt and without life insurance we were left with no options. My father wanted to be buried, but instead, we were forced to cremate him due to a lack of money.”

It is heartbreaking to hear that a family had to choose not to bury their loved one in the way that they expressly stated. Life insurance could have changed that situation.

Debt and Loss of Income

Not only that, the family was in debt and they lost their father’s income. A key earner in the family is gone and the family is left to figure out dealing with the debt. When we asked about how the family dealt with the financial struggle our friend said,

“It was an enormous amount of pressure. We were in over our head, we were receiving past-due notices, and threats from the bank”.

If the family had life insurance they would have been able to help pay off debts and to receive a monthly payment that helps minimise the loss of income. Instead, the family has to make major decisions that affect their lifestyle including staying in their family home.

Figuring Out How to Move Forward

How did our friend move forward? Sacrifice, hard work, and help from friends and family.

“We had to move from our house to an apartment and we weren’t allowed to keep our pets. I had to work 40 hours a week while still trying to attend college. When we didn’t have enough money for groceries, we had to ask our family and friends for help”.

It doesn’t matter if you are the breadwinner or if you are a stay-at-home parent. Your contribution to the family is a big one and your loss will impact your family financially. This situation highlights an all too familiar situation for families in New Zealand who struggle to make ends meet when a parent dies without life insurance.

This situation never needs to happen. Life insurance will provide your family with the means to get by without the breadwinner’s earnings or to pay for childcare for the non-working spouse. If you have a family, you have people that depend on you. Protect them with life insurance.

If you need to get life insurance, contact Wright Financial today and we will help you find the best life insurance for you needs.

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