Think about the future think about life insurance as part of a protection plan
Life insurance can be just as important to your retirement planning as other strategies as it can help to provide financial security and peace of mind, and enable you to protect your ability to earn an income in the event of accident, sickness, disability or in the event of death.
Consider the financial impact if something unexpected such as a serious sickness were to occur. A cancer patient, on average, is admitted to hospital five times, uses outpatient and accident and emergency services 21 times, visits a GP 26 times, uses medical services outside hospital 36 times and has 14 prescriptions filled and a year's supply of some cancer drugs can cost up to $60,0001
Sufficient life insurance is generally considered to be at least 10 times your annual earnings . But alarmingly, six in ten people with dependants don't have enough life insurance cover to look after their loved ones for more than a year if they were to die.2
What should I consider when considering an insurance provider?
Your insurance needs will ultimately depend on your income, debts and lifestyle so it's important to make sure you are getting the cover you need and at a price you can afford - shop around, as the insurance industry is highly competitive. And, check that the policy provides flexibility and can be adjusted to meet your changing needs - remember it's important to read the Product Disclosure Statement (PDS) as it fully describes the product, its benefit and any limitations.
The information in this article is about life insurance and related products generally and not a specific product.
1 'Heath system expenditure on cancer and other neoplasms
in Australia 2000-2001', Health and welfare series 22, Australian
Institute of Health and Welfare (AIHW) May 2005 www.aihw.gov.au
2IFSA, Rice Walker Fast Facts: a nation exposed! 2005
The information contained on this website is general information only. It does not take into account your individual objectives. financial situation or needs. You should therefore consider the appropriateness of the insurance having regard to your objectives, financial situation and needs. Prior to making any decision about an insurance product you should read the Product Disclosure Statement (PDS) for it. If you require assistance to determine if an insurance product suits your objectives, financial situation and needs then you should seek advice from your financial adviser.