Why Buy Life Insurance?

Why Buy Life Insurance?

Life insurance is a simple and cost-effective way to protect your family and financial assets. Just think about what would happen to your family if you were to pass away suddenly, or if you were diagnosed with a serious illness, and could not work for an extended period? Without your income, who would continue to pay the mortgage and look after the everyday living expenses?

There's more to life insurance...

Life insurance is not simply the payment of a lump sum in the event of your death. None of us like to think about becoming critically ill or dying, but having life insurance can provide security and peace of mind for you and your family.

There are a number of different types of life insurance benefits such as Critical Illness, Total and Permanent Disablement and Income Protection insurance. Each type of benefit offers a different level of protection for you and your family and can help maintain your quality of life after a serious accident or illness or in the event of your death.

Will I be covered if I'm diagnosed with a serious illness like cancer?

Critical Illness or Trauma insurance products are designed to provide a policy holder with a lump sum payment if they are diagnosed with one of the defined Critical illness events as listed in the relevant Product Disclosure Statement (PDS).

Critical Illness insurance is usually paid regardless of your ability to work and generally policies cover major illness such as but not limited to: cancer, stroke and heart attacks - however, 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 these can differ from company to company.

What if I just want to protect my income?

Income Protection insurance usually provides a monthly replacement income of up to 75% of your current income if you are unable to work due to illness or serious injury. Depending on the type of Income Protection policy available you may find that it provides a monthly replacement of income up to the age of 65 years if the disability you suffer is ongoing or permanent. Depending on the level of cover and your financial obligations, Income Protection insurance may ensure that mortgage payments continue to be met, as well as daily living expenses, medical and rehabilitation expenses. Not all policies offer Income Protection insurance, so it's important to read the Product Disclosure Statement (PDS) before deciding on whether to acquire the product being offered and to understand the terms and conditions that will apply.

Will I be covered if I can never work again?

Total and Permanent Disability insurance may provide a lump sum payment if you suffer a sickness or injury which means you become permanently disabled and are unlikely to ever be able to work again.

Suffering a long-term disability can be financially as well as emotionally devastating and often means that you may require ongoing medical treatment and/or rehabilitation.

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.

How do I work out how much I need?

How much cover you need depends on your individual financial situation, your circumstances and the number and age of your dependants.

The types of expenses you may wish to consider can include but are not necessarily limited to: funeral costs, repayment of the mortgage, current and future childcare and education costs, personal debts, business debts, and future income replacement needs.

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.