There is little that is more important in life than being able to protect your family’s wellbeing and security. Although we like to think we’ll always be around, nothing in life is certain. Therefore it makes sense to try and ensure your family will be taken care of financially, should you pass away.
While it’s impossible to know what challenges lie ahead in the future, you can take steps now to prepare for when you are no longer around.
Life Insurance helps your family by paying out a lump sum upon your death or if you’re diagnosed with a terminal illness. Being secured with Life Insurance also means that your loved ones aren’t left in the lurch with ongoing living expenses such as mortgage repayments and school fees.
Just had children? Make sure you get the right level of cover
Roughly half of those who decide to finally get Life Insurance do so because they just had kids. It makes perfect sense: what better reason is there to get covered than to ensure your new family is taken care of long term!
However, many families are failing to get the right level of cover to follow through on that sentiment. A middle income, two child family is usually insured with about $258,000 worth of Life Insurance. But, the typical family actually needs $680,000 to cover their needs.
What’s the lesson here? Get insured for enough money to cover your debts (e.g. personal loans, mortgages), schooling expenses, and anything else your family needs to pay for until your children become financially independent.
The right cover as you age
For many ‘young’ families, it’s natural to think you have all the time in the world to consider such things as Life Insurance. As uncertain as life is, though, you never know when a sudden tragedy might force change on your family.
For one, the chance of you becoming disabled before you hit 65 is roughly 33%. Is that higher than you expected? Additionally, your chances of getting cancer before 75 are about the same if you’re a man. For women, it’s roughly 25%.
The Life Insurance can help mitigate the costs of these terrible conditions, but so many Australians are opting out of cover a few years before they’re most likely to need it.
Even if you are one of two breadwinners in your home, if you were suddenly no longer able to contribute (or around at all), it could mean your partner has to focus on caring for your children at the expense of losing their income.
Therefore, providing you take out enough cover, having a lump-sum payment from your Life Insurance will mean your spouse and family are able to pay for those crucial living costs.
Help when you need it most
Not being around for your family is heartbreaking enough, let alone having your family potentially struggle to stay afloat. While some things are out of your control, at least you’re able to plan for when you’re not around so that your family can remain financially strong in your absence.
But a surprising 30% of Australians would choose to wait for something to happen before getting life insurance. And once they get covered, they’ll need to sit through waiting periods before being able to claim. Even then, they may not be able to get covered – depending on their condition.
One last thing: nearly two in five Australians who responded to a survey from Asteron Life stated they felt peace of mind because of their insurance, namely because they knew their family was going to be okay no matter what.
Sounds like a pretty compelling reason to get covered. We understand that your family is the most important thing to you, so we’re eager to help you compare Life Insurance. This way, you get to protect them long-term, while you enjoy that peace of mind in the short term.
You can’t always control life, but you can control what happens when you’re gone.
The information provided here is general only and does not consider your personal objectives, financial situation or needs. Before you decide to purchase a product, it is important to read the relevant PDS..