Every day you face a wide range of risks to your personal well being and lifestyle. term life insurance helps you minimize the financial impact of death or terminal illness.

Term Life Insurance is designed to provide security for a wide range of financial commitments by paying a lump sum on your death. Term life insurance policies pay out the sum insured if you die while the policy is in force.

This essential form of protection is used for a variety of purposes:

• Mortgage commitments
• Personal debt, such as loans or credit cards
• Security for business obligations
• Provide a lump sum to fund your family’s future lifestyle in the event of your death.

If you have debts which you would like paid on your death, or want to create a capital lump sum that your family can draw upon to meet their needs, then term life assurance is an essential part of your financial planning. You can ‘inflation proof’ your cover by increasing it each year in line with inflation.

Insurers will normally take applications from clients aged between 10 and 74 years of age. There is no maximum level of cover but for larger amounts financial underwriting may be required. Premiums can be paid fortnightly, monthly, half-yearly or yearly. Premiums are fixed for one year at a time and will increase annually in line with age.

With most life insurance companies you are insured for life – there is no expiry age. The only exclusion is where the cause of death is suicide within the first thirteen months of the policy or its reinstatement.

Most insurers have a Bereavement benefit included in their term life insurance policy where on application; they will pay up to $10,000 on death as an immediate benefit, to cover funeral and other costs. This is deducted from the eventual payout. They also have a Terminal illness benefit where if you are diagnosed as terminally ill and are likely to die within 12 months, you can apply for early payment of the sum insured.

You probably need some kind of life insurance but not everyone needs the same amount. How much life insurance you need will depend on your financial circumstances and attitudes towards risk.

Getting the right amount of life insurance is a very personal thing. It depends on how much risk you are prepared to carry, what assets you want to insure, whether or not you have dependants and how much you can afford in premiums.

A helpful question could simply be to ask yourself “Is anyone dependent on my income?” If so there is probably a need to seriously think about coughing up the extra cash each month and ensuring the security of your dependents.

So What is Life Insurance? Life insurance is not for you… it’s for those you leave behind. What will happen if you die or your partner dies? Who’ll pay the mortgage and put food on the table? That’s where life insurance comes in. A life insurance policy pays cash for your family to continue living after you die.

You need to weigh up the risk of not having life insurance against the costs of buying it.

Join Kiwi Discount Club and receive a 30% cash rebate on your life insurance premium and $10,000 death by accident cover free Kiwi Discount Club

With all of the benefits you can receive by purchasing your life insurance policy online, why not get started right now?

Click here life insurance quote online to receive your personalised quote.