For descriptions on each of the types of cover, visit the sections above under Personal Insurance
Family Protection
This benefit provides for a monthly income to be paid to a life assured's family upon their death, rather than an lump-sum payment.
If you died, could your family survive on your savings and a government benefit alone ?
The life assured nominates the term they wish the benefit to be paid after their death. With some insurers this can be for a set amount of years (usually from 5 up to 30) or until the time you would have reached a nominated age (usually from 31 to 70)
The facts are:
The median annual family income before tax from all sources was $60, 433 in 2003/2004 ($1,162.17 per week). 1.
The average weekly household expenditure was $888 in 2003/2004. 1
The facts are:
Around 7,000 women are receiving a widow's benefit, and the maximum monthly payment an adult with one child would receive from the widow's benefit is only $944.40 ($229.94 per week) .2.
The facts are:
1 in 9 Females over the age of 30 will die before she reaches 65. 4.
1 in 6 males over the age of 30 will die before he reaches 65. 4.
Almost 1 in 4 deaths is from coronary heart disease and is the leading single cause of death. 3.
Sources:
1. Stats NZ Household Economic Survey year ended 30 June 2004
2. Work and Income New Zealand 2006
3. National Heath Foundation of New Zealand 2007
4. NZ Life Tables 2000-2002
Depending on the insurer, some of the benefits can include:
Nominating the Benefit Term
Special Events Increase Facility
Bereavement Support
How it can help:
MAINTAIN THE LIFESTYLE
A regular monthly income assists the family to maintain the lifestyle they had before the life assured's death
CHILDREN'S UPKEEP AND SCHOOL FEES
With the increasing cost school education, school fees and trips. it is hard enough for some parents to meet the costs of this with the presence of an income earner - let alone if the income earner has deceased
REGULAR MONTHLY INCOME
Family Income Benefit is particularly to those who like to know they have a regular monthly income and would rather not have to worry about complex investment decisions to make the most of a lump sum payment.
