The importance of personal insurance for parents

Securing your family’s financial future 

Personal insurance is a fundamental tool in financial planning for parents. It provides a safety net that ensures your family can maintain their standard of living, even if the unexpected occurs. This includes not just day-to-day expenses but also long-term goals like buying a home or paying for education. By choosing the right insurance policies, you can shield your family from financial hardships and ensure the best possible life for your children, even in your absence.

Replacing lost income

Losing the ability to earn an income is a worry for many parents, especially if you’re the primary income earner in the family. Getting cover like income protection or trauma insurance can help protect you if you’re unable to work. Income protection replaces a portion of your income if you’re unable to work due to illness or injury, while trauma insurance provides a lump sum if you’re diagnosed with specified illnesses or injuries. The specified conditions are typically serious resulting in time off work, further medical costs or modifications to your home, as well as childcare costs. These covers ensure the financial needs of your family are taken care of, reducing stress and allowing you to focus on recovery.  

Clearing debts and expenses

In addition to regular income, families often face various debts – from mortgages to car loans and credit cards. In the event of your passing or inability to work, the burden of these debts can fall on your family. Personal insurance products like life insurance provide a lump-sum payment that can be used to settle debts if you pass away, thereby relieving the financial strain on your family.

Access to medical treatment 

New Zealand’s public healthcare system provides for many needs, but there can be waiting times for certain treatments and procedures. Furthermore, some specialised treatments may not be funded. Health insurance can cover costs for private treatment, which means quicker access to necessary medical care. This can be particularly important for parents, to ensure that you are back on your feet as soon as possible, or that you can receive potentially life-saving treatments without the financial burden.

For parents, personal insurance isn’t just a financial tool – it ensures that come what may, your family has financial support. Whether it’s replacing income lost due to illness, clearing debts, or accessing timely medical care, personal insurance provides a safety net that lets you focus on what truly matters. If you’re considering personal insurance or looking to understand the options available, speak to an Enva Financial Adviser who can provide insights specific to your family’s needs and circumstances. Remember, the right coverage can make all the difference to your family’s long-term security and wellbeing.