There is also a great benefit to having life insurance in that the family can likely pay off debt and make sure that they are stable so that they have time to handle their affairs and move on. Without these services, it is very hard to manage all that is going on. Instead of wondering how bills will get paid and when family members are going to go back to work, it is best to have a life insurance payout that covers those costs so that the family can get back on their feet.

Life insurance is also a wonderful help for families that may need to borrow against their life insurance premiums so that they can make it through a tough financial time. This happens often, and it allows for families to find the necessary resources so that they can make it through whatever situation they find themselves in.

Life insurance products are easy to purchase, but it is easiest if the products are purchased through an agent so that there are no questions about what the coverage offers and how it will pay out. You want to be able to know precisely what the policy says before you buy, but you cannot know all of that information without the help of a trained professional who can show you what the language in a policy means and how that policy will effect you going forward.

Making the most of a life insurance policy purchase means that the family can have peace of mind and know that they are protected regardless of what happens. That payment is something that is very helpful to the loved ones who left behind and must move on with their lives.

Many policies will also cover you for transport and towing costs from the accident site and some medical expenses. You may also be given the option of covering yourself for windscreen damage, hire car costs while your vehicle is repaired and 24 hour roadside assistance.

A lot of cars are stolen in New Zealand, 3rd Party, fire and theft insurance is the cheapest way to keep yourself covered in case your car is stolen.

Some policies will even cover your towing costs and provide some funds towards your legal defence if you are charged over a fatal accident. Under some policies your vehicle damage may be covered if you are hit by an uninsured driver and are able to identify the driver to your insurer.

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Some 3rd Party policies may provide funds towards your legal defence and cover you if you are hit by an uninsured vehicle and can identify the driver.

Every vehicle should at least have 3rd party insurance, even if the value of your car is low. 3rd party protects you in the unfortunate event that you cause expensive damage to someone else’s car or property.

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This is why it can be of great benefit to use a specialist insurance broker, who understands the details in insurance policies and can make sure you get the insurance policy you need, so there are no nasty surprises further down the line.

You may not get the ‘cheapest’ insurance deal around, but if you value what you are protecting then you will certainly get the best deal available.

So don’t be tricked into taking a policy that does not provide cover or has unreasonable clauses that mean you are not properly covered, talk to Insurance Cover to get in touch with a broker that can get you properly insured.

1. Shop around
Firstly, be sure about the cover you need – or don’t need – and then shop around for the best deal. By spending half an hour ringing around or on the internet, you could save a significant amount.

However, the best deal might not be the cheapest price – it’s no bargain if the company can’t offer the things which matter to you.

2. Check you’re getting what you pay for
Check you’ll receive all the benefits you qualify for such as a no claims bonus. Many insurance companies make special offers, so it pays to do some research.

For instance, what does your insurer offer young drivers? Some insurers give advance benefits to young drivers if their parents are already customers.

Also, some insurers will allow you to earn a no claims bonus even on third party insurance – it’s useful to build up a good claims history.

3. Increase your excess
This is your share of the cost when you make an insurance claim. If you agree to pay more, it will usually mean your insurer discounts your premium.

However, be confident that you could meet the excess amount you’ve committed if you do need to make a claim.

4. Stagger your payments
Many people find it easier to pay off the premium over the year instead of a single lump sum, and there may be various options such as weekly or monthly payments.

It will usually cost a little more but it’s a popular option if a single payment is difficult to budget for.

Get the annual premium cost as well so you can compare the difference.

It can also help to spread the renewal dates for different types of insurance over the year, such as having car insurance renewed in March, house insurance in June and contents insurance in October. No-one wants to face all their insurances being due in December.

5. Insure accurately
People struggling financially are least able to face the costs of an accident.

Think carefully about whether you need comprehensive insurance, or third party (covers the damage you do to someone else’s property), or third party fire and theft.

One feature of third party insurance which is often overlooked is uninsured driver protection. This means your car is covered when you are in an accident caused by an uninsured driver.

If you have comprehensive car insurance, make sure you’ve agreed on the value of your car with your insurer. If your policy says “market value” and your car is written off or stolen, you’ll receive what the car was worth that day, not what it will cost to replace. It can be a surprise.

Take just a couple of minutes to consider what position your loved ones would be in if something serious happened to you. Better still, think about the position you would prefer them to be in if you became seriously ill or passed away. If you are a significant income earner in your family, how would your partner cope if your income was no longer contributing to the household? It’s important to ensure your partner and children are not left financially vulnerable in the event of your death or incapacity from a serious illness or injury. Wouldn’t you prefer to ensure the home mortgage and any other debts were paid off and they were financially comfortable in your absence?

A good life insurance policy will provide a lump sum payout in the event of your death, and often prior to your death if you are diagnosed with a terminal illness. This can assist your family members to care for you if need be and ensure they are not destroyed financially by it. Some policies have benefits to cover you in the event of paraplegia or quadriplegia too. Most life insurance policies have a bereavement support benefit which will assist to pay for funeral costs.

Life insurance is equally important for a single person. If you were to have the misfortune of a serious vehicle accident and were left a paraplegic, or you were diagnosed with a terminal cancer, who would care for you? It’s likely that a parent or sibling would want to – but caring for you is likely to have a devastating impact on their life and on their financial well being.

If you’ve ever cared to a terminally ill person, or experienced a sudden death in the family you’ll understand the ongoing financial consequences that can flow from it. If the thought of leaving your loved ones behind doesn’t bear thinking about, the thought of leaving them behind and in financial turmoil should be even less palatable.

Finding a suitable life insurance policy is relatively easy – and certainly not as expensive as you might expect such coverage to be. You can even shop for one online. Once you’ve selected your policy you might want to set up direct debit payments so you don’t have to think about the subject of life insurance again!