What it does for you
Life insurance provides a safety net for your dependents if you were to die. So, although most of you will never receive a direct monetary benefit from this type of policy, it will give and your loved ones inestimable comfort to know that they will be looked after if you were to die.
Life insurance not only helps supplement income and cover debt if a main breadwinner were to die, it helps provide a buffer during the grieving period as well as burial costs. Importantly, life insurance is not just for the main income earner in a family. If children, especially young children are involved, additional money may be needed for care, after school care, or help around the house if a parent or partner were to die.
Life insurance is invaluable for sole parents and people who have children with more than one partner. While, two partner families should each have policies on their own lives.
Choosing life insurance that is right for you
Life insurance is often offered through superannuation policies and similar to income protection, this can be a cost effective means of obtaining an amount of life cover. You should confirm if and how much cover you have through a superannuation policy. Generally, the basic coverage amount is fairly minimal considering today’s average debt and financial obligation levels, so you may need to top up your amount of cover. There are different types of life insurance: term insurance, whole of life, and endowment policies. However, whole of life and endowment policies are rarely used these days due to their higher costs and very restricted availability.
Like all insurance products, life insurance policies will differ from provider to provider. Obviously cost is a major issue but so is a hassle-free, well-handled payout. There are other considerations when choosing a life policy, such as, will the policy pay out if you become terminally ill.
Our in-house Risk Insurance Consultant will be able to assist you in choosing the most appropriate insurance cover, and combination of insurance cover for you and your family.
Contact us today for your no obligation free consultation.
