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Life insurance for first home buyers

Should you consider Life Insurance as a first home buyer?

Getting your first home is exciting and a great milestone. However, it's also important to consider what would happen to your loved ones if you were to pass away unexpectedly. This is where life insurance comes in. 

Life insurance can provide financial security and peace of mind for first home buyers, knowing that their loved ones and financial obligations are protected in the event of their death. It's important to consider the benefits of life insurance and speak with a financial adviser or insurance broker to find a policy that meets your needs. Life insurance provides a lump sum payment to your beneficiaries in the event of your passing. This can be used to cover expenses such as funeral costs, outstanding debts, and ongoing living expenses. For first-time homebuyers in New Zealand, life insurance can be particularly important as it can help ensure that your loved ones are not burdened with your mortgage payments if something were to happens to you. 

When considering life insurance as a first home buyer, there are a few factors to consider. These include: 

1. Mortgage payments

Buying a home often involves taking on a significant amount of debt in the form of a mortgage. An unexpected death could leave the remaining partner/ spouse with the burden of paying off the mortgage on their own. Life insurance can help ensure that the mortgage is paid off, allowing the surviving family members to keep their home. 

2. Outstanding debts

In addition to a mortgage, many first home buyers may have other outstanding debts such as student loans, credit card debt, or car loans. Life insurance can provide funds to pay off these debts, relieving the burden on the surviving family members. 

3. Living expenses

The loss of income due to the passing of a primary breadwinner can be a significant financial burden on the surviving family members. Life insurance can provide funds to cover ongoing living expenses such as groceries, utilities, and childcare. 

4. Funeral Costs

Funerals can be expensive, and the cost can add up quickly. Life insurance can provide funds to cover these costs, allowing the family to focus on grieving and moving forward.

5. Your Budget

Life insurance premiums can vary depending on the type of policy you choose and the amount of coverage you need. It's important to choose a policy that fits within your budget while still providing adequate coverage for your loved ones. 

6. Peace of mind

Life insurance can provide peace of mind, knowing that your loved ones will be taken care of in the event of your unexpected passing. This can be especially important for first home buyers who may have limited savings and assets. 

Life insurance can be an important consideration for first home buyers. You may want to work with an Insurance Adviser (also known as an Insurance Broker). An Insurance Broker / Adviser can evaluate your specific needs and compare quotes and benefits from different providers to implement a policy that gives you peace of mind and protects your family's financial future.

Our in-house Insurance Brokers / Advisers have a 100% claims success rate and specialise in showing you insurance options that fit your needs and budget. For more information on our Insurance Advice services, check out our Vive Insurance page or contact us directly. We can sort you in no time.


The contents of this article are for information-only and may express the opinion of the writer. This article is not be taken as personalised financial advice, as everyone’s situation is different. Please always seek advice from a financial adviser before making any decisions with your personal and/or business finances.


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