Do we need Life Insurance?
Consider a few things: if you are married, have dependent children, other dependent relatives, have major financial obligations, own a business, or a large estate that will take time to distribute–If you have two or three out of these mentioned, then you probably need life insurance.
Life insurance can protect you and your loved ones if something goes wrong. In the same what as you can take out cover on your house or your vehicle, when you take out life cover, you pay a premium to your life insurer and if something happens, your life insurance helps cover the financial side with a lump-sum payment.
Having financial commitments like mortgage, personal loans or credit card debt or a family who depend on your income, you need to put in mind about what would happen if you suddenly fell into illness and could not work– or no longer around.
Life insurance allows you to have money to feed your family and pay your bills if you become ill, suffer a serious injury, or become permanently disabled. Life insurance is like the life jacket in the boat– you hope you never have to use it, but it’s comforting to know it’s there.
Life insurance is even more important if and when something even worse happens. The death of a family member is traumatic enough without having to add financial stress as well. Stories of families whose financial status and lives dramatically changed for the worse after the death of the main breadwinner have been too many, and our aim is to lessen that.
There are five basic life insurances that are available to make your life financially secure no matter what happens to you in a physical way are as follows:
- Term Life Insurance
- Total and Permanent Disablement (TPD)
- Trauma Insurance
- Income Protection
- Business Express
Each of these products provide for different circumstances–and the products offered by different providers vary in terms and the extent of cover. Choosing the right policy for yourself is very important. We will look into the different types of life insurances over the next few blogs.
Some products vary between companies, and consumers should always read their Product Disclosure Statement (PDS) before they purchase cover. You should always purchase an appropriate level of cover for your situation.
It is understandable that it can be difficult determining what types of cover and amounts you might need, let alone choosing an Insurer. Your adviser can assist by helping you determine your needs and recommend an insurer that is right for you.
Should you want to talk to a Financial Adviser, contact Kent McDonald from K2Wealth on (07) 3368 2002 or at kent@k2wealth.com.au.
