Do people REALLY need Life Insurance?
What are the chances....really?
Well, the odds are pretty good for most of us that we will make it through our working lives, so that is good news!
The chances of males dying in NZ before age 65 are basically about 15%, or nearly 1 in 7.
The odds get a lot worse though when it comes to critical illnesses.
- About 30% of New Zealanders will suffer from an invasive cancer of any sort
- The chances of getting breast cancer or prostrate cancer is about 1 in 9.
- 1 in 5 men will suffer from a heart attack, cancer or a stroke before age 65
- 1 in 7 women will suffer from a heart attack, cancer or a stroke before age 65
- 1 in 7 New Zealanders will suffer from an illness or accident lasting 6 months or more during their working lifetime.
So there is a really strong argument for having insurance that pays out in the event of suffering a trauma such as heart attack, stroke or cancer. They happen a lot, and to a lot of New Zealanders, during their working life.
If that did happen to any of us it would certainly de-rail retirement plans, and probably also derail the idea of paying off the mortgage faster....and it would probably derail most of our financial plans and goals really.
It makes sense for most people when they have commitments and dependents and need their income to achieve their family goals to have some insurance to cover these sorts of events.
If a major traumatic illness did happen then you can receive a lump sum of money that will buy you the time you need to recover, or pay down debts, or make other provisions for the future.
For the cost involved in setting up term life insurance with some permanent disability and some trauma insurance built in, it just makes good financial sense to do it. It protects the rest of your investments, the rest of your assets, your plans and your family's future.
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