Funeral Insurance. Do you really need it?
The opinions expressed in this post are my own and may not be applicable to your circumstances therefore it is suggested that you talk things over with your own family if you are unable to make your own decisions.
You must have seen the TV adverts selling funeral insurance so that you are covered if something unexpectedly happened to you. I do not have this kind of insurance but I do know others who do. Yet these people are not with kiwisaver, New Zealand’s retirement scheme. Now, I do not know how much they are paying to these insurance companies every week but I suggest that if they cut out the insurance and instead invested that same amount of money into their kiwisaver account then they would in the long run be better off financially providing of course that they do not die in the forseeable future.
Now let us suppose for the sake of explaining things that they are paying $10 per week or $520 per annum in funeral insurance. If this money was invested in kiwisaver instead and along with the government’s contribution of 50% of their contribution would mean that there would be $780 in this person’s kiwisaver account. If this was repeated every year then there would soon be sufficient money in the kitty to pay for insurance.
Do you see where I am coming from?
It is something to think about but as I stated at the beginning of this post, this is my own opinion and may not be applicable to your circumstances.