Philip Holland Financial Independence financialindependence

Yes we are missing you! Imagine for a second that you have died and are now upstairs and looking down on your loved ones. You are seeing the hurt and emotions, but you are also shocked to see the financial devastation that your death has caused.

So let's look at some of the major financial issues that you need to think about:

• Debt – this is a biggie. Could your surviving partner cope with the level of debt that you currently have? Given debt is one of the most stressful parts of many people's finances wouldn't life be easier if it was eliminated.
• Funeral Cost – would your surviving partner be able to write a cheque out for $15,000 to cover the funeral and legal costs today?
• Replacement income – This is particularly true for families that may have a main bread winner. With your income gone will they be able to survive?
• Grieving Fund – Everyone handles grief differently. Wouldn't it be nice to know that you have funds available to take some time out, maybe a trip with the kids?
• Education – We all want the best for our kids so maybe set some funds set aside.

There are two ways in which life insurance can be paid out to your surviving partner.

You may want a lump sum to reduce debt etc immediately, or an ongoing monthly payment to replace the lost income.

So before you go out and die please make sure that you have your family well covered.

Philip Holland is the Managing Director for the Financial Independence group, Tauranga's leading specialist insurance and mortgage advisers. For further information please contact an adviser at Financial Independence 578 4414 or email philip@youradviser.co.nz. A Disclosure Statement is available free of charge on request. The opinions stated in this article are those of the writer and should not be taken as specific advice.