A natural disaster such as the recent Christchurch earthquake reinforces the need to be prepared. It reaffirms the need to take responsibility in terms of having life insurance to ensure that if the worst does eventuate families can survive and carry on with life.
There have been many stories about the different levels of preparedness of those caught up in the Christchurch earthquakes – some had enough supplies to get through when the power was cut and there were water shortages, some had adequate house and contents insurance, some businesses had business interruption insurance – many however were underprepared or totally unprepared.
The same principal applies to having life insurance.
There are strong parallels between the shock and devastation that is felt with this type of natural disaster and the shock and devastation that families feel and experience when a loved one dies.
When a disaster happens and a loved one dies, whether it’s from illness or accident it is a time of huge shock and change to the family unit.
Easing financial burdens with life insurance
In the short term there are funeral arrangements to be made and paid for and family to contact and possibly arrange travel for if they are based overseas.
All of these arrangements and decisions are usually made within 48 hours of a loved one dying and it doesn’t leave a lot of time for grieving.
However, once the funeral is over, it often becomes only too apparent that where there once was a family member there is now a gap that will never be filled. Coming to terms with the loss of a loved one or family member takes time, families have to adjust to life without them.
Having adequate life insurance in place eases the financial burden on the family when a loved one passes away. It provides certainty that bills can still be paid, the mortgage will still get paid and food can be put on the table.
Life insurance policies & bereavement support
Most life insurance policies include provision for a bereavement support grant (an advance payment of $5,000 – $10,000 that can be paid out within the first couple of days providing a death notice or death certificate can be provided) which can ease the financial pressure on families during the first few days when so many arrangements need to be made.
When a major upheaval, such as loss of life, strikes a family it takes time to adjust and it is often a time for reassessment of work, living arrangements and close relationships.
Receiving the benefit of a life insurance policy allows the family time to make these decisions without financial pressure. They can then implement any changes (such as taking time off work to spend with children, or finding the right person to help at home as a nanny) at their own pace.
Preparing for disaster makes sense – having adequate life insurance in place (and reviewing it regularly) does too. Life changes, your insurance should keep up!
Life insurance and the underwriting process
