Life insurance – a lifetime of support
No-one likes to think about their mortality. It’s a subject we all want to put off for another day. But it is important to consider the possible impact on your family so you can put a strategy in place to support them if you were no longer here to do so.
Every day, more than 17 Australian families* with children experience the loss of a parent.
How would your family cope financially without you?
But there are steps you can take to reduce the stress. Term life insurance provides a lump sum to your family in the event of your death or diagnosis of a terminal illness.Just 4% of Australian families with dependent children have the right amount of life insurance. The remaining 96% are underinsured to the tune of $1.37 trillion† – a big financial burden that loved ones are left to bear.
This payment could be used to meet a range of needs such as:
- repaying debts
- medical and funeral expenses
- children's education costs
- replacement income
- business succession
- estate equalisation
- gifts to loved ones.
How much is enough?
The average life insurance policy in superannuation provides only 20% of what a family needs‡. This often isn’t even enough to pay off the mortgage.
It can be difficult to work out how much life insurance to take out - that’s where an insurance professional can help. Many families have struggled financially after the loss of a loved one, even if they did have insurance, simply because it wasn’t enough to meet current and future expenses.
Every family is unique and it’s important to work out just how much insurance you need for your individual situation. We can help you do the sums.
Who gets the payment?
There are many different ways to structure ownership of a life insurance policy, such as:
- through superannuation
- owned by a beneficiary
- nominated beneficiary
Each option has pros and cons. We can explain these to you and suggest a structure that suits your particular needs.
Life insurance doesn’t have to be complicated.
But there are many factors to consider. We can help you to get it right and ensure that, even when you aren’t here, your family receives a lifetime of support.
[Click here to meet with an Life Protect about term life insurance or to obtain a quote…]
* The Lifewise/NATSEM Underinsurance Report
† Investigating the issue of underinsurance in
‡ Rice Warner Actuaries, Lifewise, as cited in “Risking Everything: Facts and Figures June 2011, AFA White Paper
