Losing a loved one is tough. It’s an emotional rollercoaster, and it’s not just about dealing with the pain of loss. There are practical and financial aspects that need attention too. This article aims to shed light on the often overlooked but significant costs associated with death in New Zealand.
According to recent statistics, If you are Non-smoker couple there is a 15% chance that one of you will pass away in your working life, and if you are smokers, chance goes up to 27%.
By understanding the real cost of death, we can highlight the importance of having life insurance to provide financial security and peace of mind should the unexpected happen.
Funeral Costs
Arranging a funeral can be expensive, and the costs can add up quickly. On average, funerals in New Zealand can range from $8,000 to $15,000, depending on factors like the location, type of service, and additional expenses like flowers, catering, and transportation. These expenses can create a financial strain for family members already dealing with the loss of a loved one.
Time Off Work
When a loved one passes away, taking time off work is essential for grieving, making funeral arrangements, and supporting the family. However, this time away from work can have financial consequences. While some employers offer bereavement leave, it is often limited to a few days and may not `be long enough for the grieving process. The loss of income during this period can worsen the financial burden, especially for those with financial responsibilities and dependents.
Debts and Financial Obligations
Debts and financial obligations don’t disappear when someone passes away. They can become a heavy burden on the surviving family members. This includes outstanding mortgages, loans, credit card debts, or even medical bills. This can be even more complicated for surviving family members if the person that passed away was the main income earner. Without sufficient life insurance cover, these financial liabilities can amplify the stress of an already challenging situation, potentially leading to financial hardship and long-term consequences.
Mental Health Impact
Losing a loved one is emotionally challenging and can have a profound impact on mental health and well-being. Grief and stress can manifest in various ways, such as anxiety, depression, and other mental health issues. The financial burden that comes with the death of a loved one can further intensify these challenges, making it harder for individuals to cope and recover.
Life insurance plays a vital role in protecting against the financial consequences of a loved one’s death. With a life insurance policy, you can ensure that your family will have the necessary funds to cover funeral expenses, manage outstanding debts, and maintain their financial stability during the grieving process. Additionally, life insurance can help replace the lost income of the deceased, ensuring that your family’s immediate and long-term financial needs are met.
Need advice?
Life insurance becomes a lifeline during such challenging times. By securing adequate cover, you provide your loved ones with the peace of mind and financial stability they deserve, allowing them to focus on healing and supporting each other during these difficult moments. Remember, life insurance is not just a financial investment; it’s a way to safeguard your family’s future when they need it the most.
Speak to your Apex Adviser to make you have sufficient cover to protect your family. Call us on 0800 809 009, or email clientsupport@apexgroup.co.nz and one of our team will be in touch.
