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Why You Need Life Insurance
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This is where life insurance enters the conversation.
An insurance company in Australia conducted a study that shows that close to 50% of Australians do not have a life insurance plan.
Many cite different reasons for this. Some say it is too costly, while others believe that it is not needed.
However, there are very affordable life insurance plans, and contrary to some opinions, life insurance is necessary for every family.
This is where life insurance enters the conversation.
An insurance company in Australia conducted a study that shows that close to 50% of Australians do not have a life insurance plan.
Many cite different reasons for this. Some say it is too costly, while others believe that it is not needed.
However, there are very affordable life insurance plans, and contrary to some opinions, life insurance is necessary for every family.
What is Life Insurance?
Typically, life insurance is an agreement that if you die, or are diagnosed with a terminal illness, your life insurance provider pays out a lump sum to (typically) your spouse or children.
You can also have this death benefit paid to other members of your family (i.e., parents, siblings, etc).
At a terrible moment in time, life insurance can help you take care of the financial uncertainties your family will likely endure after you’re gone.
Financial obligations such as mortgage repayments, everyday living expenses, funeral costs, children’s education fees, and debts should all be considered
when discussing a suitable life insurance policy.
Importance of Life Insurance
1. Life Insurance Provides Peace of Mind
Your money worries won’t stop with death. We work hard to make ends meet, and we wonder if our families will survive without our income.
What would your family do without your paychecks and financial support?
Life insurance offers comfort and protection.
When you have a life insurance policy, you can have confidence that your family will have the money they need when your income is gone.
Whether they need money to cover end-of-life expenses or necessary expenses, life insurance offers protection.
Life insurance proceeds can provide for loved ones’ financial needs for many years.
This is how life insurance acts as a safeguard.
While insurance needs vary somewhat from person to person, most people can ensure that their families are sufficiently protected by buying a life insurance policy with a face value of ten to fifteen times the insured person’s annual income.
2. Life insurance can be flexible.
Life insurance is a complex product, and you shouldn’t rush to take out a policy before thinking long
and hard about your personal circumstances and whether they necessitate having a life insurance policy in place.
However, if you decide to take out a life insurance policy, there are many options out there to choose from.
The market contains a range of policies suitable for most occupations and life stages, and most policies offer a wide range of benefit options.
Types of Life Insurance
Term Life Insurance
Otherwise known as ‘death cover,’ this level pays a set lump sum when you die.
The sum of money goes to the people nominated as your beneficiaries on your policy.
Total and permanent disability cover (TPD)
This level of cover assists you by paying a lump sum in the case of severe injury or permanent disablement.
This sum is designed to support you with rehabilitation and living costs if you can no longer return to work.
TPD insurance differs from insurer to insurer and can be taken out in conjunction with a life insurance policy or as an individual product.
Trauma cover
Offers cover if you’re diagnosed with a terminal illness or injury, such as cancer, heart disease, stroke, and other life-threatening conditions.
Also known as ‘critical illness cover,’
trauma insurance pays a lump sum if you suffer a major medical incident (such as cancer and heart disease)
and is ideal for Aussies who want to safeguard their health.
You can find the best life insurance plans by using comparison sites online, which help decide the best life insurance plan that fits your income.
