Death Do Us P(re)art: How to Squeeze Some Juice Out of Your Life Insurance Before You Kick the Bucket (NZ Edition)
Alright, New Zealanders, let's talk about the elephant in the room, not the actual elephant at Wellington Zoo (those guys get enough attention), but the big hairy thing lurking at the end of our lives: death. Now, you've probably got your life insurance sorted, a nice little nest egg for your loved ones to squabble over after you've shuffled off this mortal coil. But what if I told you that life insurance can be your magic money tree before you become fertilizer for daisies? Buckle up, Kiwis, because we're about to get cheeky with our mortality.
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| How To Use Life Insurance While Alive Nz |
Term Life? More Like "Meh" Life:
Hold onto your gumboots, because this first bit isn't all sunshine and pavlova. Term life insurance, the basic b*tch of the life insurance world, doesn't offer much in the way of living benefits. It's like a one-way ticket to the afterlife, no refunds, no stopovers at Hobbiton. So, unless you're planning a skydiving stunt with a bungee cord made of Tui braids, you won't see a cent until you're pushing up daisies.
Tip: Don’t just glance — focus.
Permanent Life? Now That's a Party!
But fear not, adventurous Kiwis! Permanent life insurance, the fancy pants option, is where the real fun begins. Think of it as a piggy bank on steroids, one that grows even when you're not feeding it coins. Here's where things get interesting:
QuickTip: Treat each section as a mini-guide.
1. Loan Yourself Dough: Need a new kayak to conquer those Fiordland rapids? Fancy upgrading your hangi pit to volcanic proportions? You can borrow against your policy's cash value, like a fancy bank for one. Just remember, treat it like a friendly Kia Ora, not a "Kia Kaha" to financial oblivion.
2. Cash Out and Make it Rain: Feeling like a true cashed-up kiwi? You can surrender your policy and grab a lump sum. Think of it as a retirement plan B, except instead of bingo nights and questionable dance moves, you get to spend your golden years sipping Mai Tais in Rarotonga.
3. Living Benefits: Life Hacks for the Living:
Tip: Focus on clarity, not speed.
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Some fancy pants policies come with built-in perks, like critical illness cover or accelerated death benefits. Imagine, getting a head start on your heavenly harp lessons if you get diagnosed with something that rhymes with "cancer." Or, if your skydiving adventure goes a bit south, your loved ones get a financial parachute to soften the blow.
But Wait, There's a Catch (of course there is):
Before you start planning your Fiji Island retirement funded by your life insurance, remember this:
Tip: Don’t overthink — just keep reading.
- Cashing out or borrowing comes with fees and interest. It's like a possum in your picnic basket – cute and fluffy, but it might steal your sandwich.
- Your death benefit shrinks when you tap into the cash value. Think of it as using your future funeral fund for a spontaneous trip to Hobbiton. Your loved ones might not appreciate the theme park vibes at your wake.
- Talk to your financial advisor or insurance provider before doing anything drastic. They're the Gandalf to your life insurance journey, guiding you through the treacherous Mordor of financial decisions.
The Bottom Line:
Life insurance can be a valuable tool, even while you're still breathing. Just remember, it's not a bottomless well of pavlova money. Use it wisely, and you might just squeeze some extra adventure out of your life before you become worm food. Now, go forth, New Zealanders, and make your life insurance sing – just don't sing it from the top of the Sky Tower, unless you've got a seriously good policy.
Disclaimer: This post is for entertainment purposes only and should not be taken as financial advice. Always consult a qualified professional before making any decisions about your life insurance. And remember, never underestimate the power of a good cuppa and a slice of pavlova to solve all your problems (except maybe death, but hey, we can't win 'em all).
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