Could Your Family Keep Going Without You?
It’s not a question most of us want to think about.
Could your family keep going without you?
Not emotionally. Not in terms of how much they would miss you - that goes without saying.
The question is what would happen to the practical, financial parts of everyday life if you were no longer there.
Who would pay the mortgage?
Who would cover the household bills?
Who would look after the children?
What would happen to the plans you had made together?
These aren't questions about putting a value on a person.
They're about understanding the role each person plays in a family and what might need to change if one of those people was suddenly gone.
Every household relies on its people
Families don't all work in the same way.
One person might be the main income earner while the other looks after the children. Both might work full-time. One might run a business while the other manages much of the household. Perhaps grandparents or other family members provide regular support.
Whatever the arrangement, each person contributes.
Some contributions are obvious because they come with a payslip.
Others don't.
Childcare, school runs, cooking, cleaning, organising appointments, managing the household and supporting children are all things that take time - and could have a significant financial cost to replace.
If one person is no longer there, the impact can therefore extend well beyond the loss of their income.
What would change financially?
Imagine a household where both parents work.
If one parent died, the family could lose an income, but they may also face additional costs.
Perhaps one parent would need to reduce their working hours to care for the children. Maybe childcare would need to increase. There could be changes to housing, transport or other day-to-day expenses.
Or consider a family where one parent is the primary income earner and the other looks after the children.
The loss of the income could create an immediate financial challenge. But the loss of the unpaid childcare and household support could also make it harder for the surviving parent to continue working in the same way.
Every family is different, which is why there isn't a single calculation that applies to everyone.
The important thing is recognising that every person contributes something to the financial and practical wellbeing of their household.
It's also about the future
The impact isn't necessarily limited to what happens next month.
Families often have plans that stretch years into the future.
Paying off the mortgage.
Helping children through school or tertiary education.
Building savings.
Contributing to KiwiSaver.
Starting or growing a business.
Travelling together.
Preparing for retirement.
These plans are built on the assumption that life will continue broadly as expected.
If someone dies unexpectedly, those plans may need to change.
Life Insurance can provide a lump sum to the people you leave behind, subject to the terms and conditions of the policy. That money can potentially help with things such as household expenses, debt, childcare or other financial commitments.
It can also give a family more flexibility while they work out what their new normal looks like.
Protection isn't about predicting the worst
Talking about Life Insurance can sometimes feel uncomfortable because the conversation begins with something none of us want to happen.
But the purpose of financial protection doesn't have to be fear.
It can be continuity.
It's about giving the people you care about some financial breathing room if life doesn't go according to plan.
It might mean the surviving parent has more options about whether they need to immediately return to full-time work.
It could help reduce financial pressure around the mortgage.
It might provide funds to cover childcare or other additional costs.
It could help keep longer-term plans on track.
The money can't replace the person.
Nothing can.
But it may help make the financial transition a little easier.
What does your family rely on you for?
It's worth thinking beyond your salary.
Ask yourself:
What income do I provide?
What household responsibilities do I take care of?
How much childcare or family support do I provide?
What debts or financial commitments are in my name?
What plans are we working towards together?
What would my family need to change if I wasn't here?
Then think about the same questions for the other people in your household.
You may find that the answers look very different from what you initially expected.
Protecting continuity
None of us knows exactly what the future holds.
That isn't a reason to live worrying about it. But it can be a reason to make sure the people who depend on us aren't left with unnecessary financial uncertainty.
Life Insurance is one part of that conversation.
The right level and type of protection will depend on individual circumstances, financial commitments and the policy options available.
The starting point, however, isn't a policy.
It's understanding what your family would need to keep going.
Because protecting the people you love isn't about putting a price on your life.
It's about helping give them the financial freedom to keep living theirs.
If your circumstances have changed - perhaps you've bought a home, had children, changed jobs, started a business or taken on new financial commitments - it may be worth reviewing whether your existing protection still reflects your situation. At New Vision Financial Services, we can help you understand your options and consider how Life Insurance may fit into your wider financial plans.
Amy Callon
Financial Adviser
New Vision Financial Services
Plan your future and let us help you have peace of mind along the way.