Your life insurance policy will pay out at the time of your death. You can detail in your will how the life insurance payout should be used, particularly if you could be leaving behind dependent children.
You may wish to note that a portion of the cover is used to payoff the remaining mortgage on your property and that the property, which could be held in a Family Trust, is to be inherited by your children when they reach the age of 18. A second portion of cover could be designated for use by the appointed guardian.
Generally, writing a will is a way to make sure that your financial legacy is protected and passed down to your children.
Why write a will?
As we get older, our lives change. We may go from single to married, married to divorced, or childfree to a fully-fledged little family.As we reach the twilight years we may even go from parent to grandparent and mortgage payer to mortgage free. We may even go from married to widowed or widower. At every stage in our lives we have different needs and different responsibilities.
In the event of tragedy, a will can help simplify things, making it easier for your wishes to be carried out as requested. If you are a parent of young children, you can name a guardian who will care for your children in the event of the death of both parents. Or if you are nearing old age, your will can ensure that all your assets are fairly divided between your children. If you have no children, you can even choose to bequeath your assets to a friend or charity.
Some things to consider
Some things to consider
In most cases it’s the details that get left behind when writing a will.
You may note that you want your home to be paid off and placed in a trust, but you may forget to list who you would like to live in it, or even who manages the property if't is to be rented out.
There’s also the issue of listing only one guardian for your children, or listing a couple and joint guardians but not noting whether this would change if the couple gets divorced or passes away before you.
Valuable material possessions are another issue to consider. If you have items of great value you may wish to leave them to specific friends of family members to avoid arguments.
Normally you name at least one 'executor' as part of your will. Executors manage the estate of the deceased.
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Your insurance is underwritten by Chubb Life Insurance New Zealand Limited (Chubb Life). Chubb Life has an A (Excellent) financial strength rating given by A.M. Best Company Inc. A summary of the rating scale is: A++, A+ Superior | A, A- Excellent | B++, B+ Good | B, B- Fair | C++, C+ Marginal | C, C- Weak | D Poor | E Under Regulatory Supervision | F In Liquidation | S Suspended. For the full rating scale and more rating information visit www.ambest.com/ratings/guide.pdf