Age, health, and marital status are ultimately irrelevant when it comes to buying life insurance. Almost everyone needs it because none of us is invincible or psychic. Life insurance is about protecting what’s important and taking care of those we leave behind.
[Source: Arghandewal, A. (2020). I’m young, single, and healthy, but I just bought $300,000 of life insurance and it was a no-brainer. [online] Business Insider. Available at: http://I’m young, single, and healthy, but I just bought $300,000 of life insurance and it was a no-brainer [Accessed 15 Jan. 2020]].
A full review of your life insurance needs is fundamental to ensure you and your family are protected if something happened to you. We all want to make sure our loved ones are looked after so ensuring we have the right wealth protection strategies in place is core to the financial planning process.
A full analysis of your current insurances vs what you may need will identify what is required to protect you and your family.
Most people are unaware of the importance of life insurance and the different types available; the most common types available in Australia are:
Term Life Insurance pays a lump sum to your estate or your beneficiaries in the event of your death or in some cases, terminal illness. This can be held in your super fund as a way of making premiums more affordable.
Total and Permanent Disability Insurance pays a lump sum if you suffer an illness or injury and are unable to work again, care for yourself independently or you suffer significant or permanent cognitive impairment.
Trauma Insurance pays a lump sum upon the diagnosis of a specified illness or injury, for example, cancer, stroke or heart attack.
Income Protection Insurance provides a monthly benefit to replace income lost if you can’t work for a prolonged period due to sickness or accident.