Who Needs Life Insurance?

Who Needs Life Insurance?

Unexpected death or serious illness can cause unnecessary financial hardship to your loved ones. Whether it's for covering personal debts, paying the rent or mortgage, or even just providing financial support for funeral expenses - you may wish to consider life insurance.

At a glance, life insurance can appear complicated and overwhelming but no matter what stage of life you're in it's important to consider life insurance as part of your personal protection plan.

Why is life insurance important?

Most people first think about getting life insurance when they get married, have children or take out their first mortgage. Life insurance provides financial support for your dependants if you were to pass away unexpectedly - it will help pay the mortgage, school fees and every day living expenses.

What if I'm not the main breadwinner?

Your family still rely on you to look after the children and the home. So while it's not a nice thought, it's important to consider what would happen if you were to pass away - who would look after your children and the family home? Life insurance can provide a lump sum payment, and enable childcare and home help costs to be funded, while your spouse continues to work.

And if I don't have kids yet?

Generally, the younger and healthier you are the less expensive life insurance is. However, even if you don't necessarily wish to consider life insurance there a number of other personal risk protection solutions that are available to you such as Critical Illness, Total and Permanent Disability and Income Protection insurance.

Each type of insurance cover will offer different levels of protection for you and may mean that in the event of serious illness, temporary or permanent sickness and/or disability, you can keep paying the rent and have sufficient funds to cover daily living expenses . It's important to read the Product Disclosure Statement before deciding on whether to acquire the insurance cover because each policy will be subject to certain terms and conditions, and because these can differ from company to company.

Do I still need life insurance when I've retired?

Personal insurance needs may have diminished once the kids have left home and you've paid off the mortgage, but it can still be important to consider life insurance - it can provide an additional retirement income for your spouse, be used to fund funeral expenses and can be used to provide a legacy for your descendants.

The information in this article is about life insurance and related products generally and not a specific product.

Important note

The information contained on this website is general information only. It does not take into account your individual objectives or financial situation. You should therefore consider the appropriateness of the insurance having regard to your objectives, financial situation and needs. Prior to making any decision you should read the Product Disclosure Statement (PDS). 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.