4 things union workers should know about life insurance
Life insurance isn’t something we like to think about, but it’s important to have cover in place, especially if you have people depending on you. Life insurance should cover any funeral expenses, as well as debt or living costs your family might need help with should you pass away. To help you learn more about life insurance and how it works as a union worker, here are a few facts you should know.
1. Payouts are usually tax-free
Most life insurance payouts in New Zealand are tax-free, but this doesn’t include any payments you receive under some income protection policies (this is considered income). Life insurance premiums also usually won’t require you to pay any GST unless you have any additional benefits.
2. There’s more than one type of life insurance
The most common type of life insurance is called term life cover. If you have term life insurance, you receive a payment if you get diagnosed with a terminal illness or pass away within a certain time period that’s set out in your policy.
3. Your children might be covered too
There are various life insurance policies that give you the option to include your children under your policy as well. There’s often no extra cost for this and it means you’ll receive a payout to help you look after them should your child be diagnosed with a condition that’s covered under your policy. Not all insurers offer this but it’s worth having a chat to your adviser if it’s something you’re interested in.
4. There are different premium options
Usually as you get older, your life insurance premiums increase, but there are different ways that you can structure your policy to suit. You can choose a stepped premium structure, where your payments start out lower and then increase each year, or you can choose what’s called a level premium structure where your payments are higher to start, but don’t increase year on year. It’s best to sit down with an adviser if you’re unsure which option is best for you.
If you’d like to look at your life insurance options or just learn more about the policy you have, get in touch! We’re here to help you get the right cover for yourself and your family.