What is life insurance and how it can help everyday Australians?
No one likes talking about death, but unfortunately, it’s a part of life. If you want to ensure your family is financially secure when you pass on, then you need life insurance. Often referred to as term life insurance or death cover, life insurance ensures that a set amount of money is paid to nominated individuals in the event of your death. In Australia, if you do not legally nominate individuals, then a trustee, or your estate, will determine where this money goes.
How much life insurance you need depends on you and your family’s financial circumstances. When determining your level of life insurance, you need to consider all your current debts and loans, as well as your children’s future childcare and education costs. You also need to decide how much income your family would need to live comfortably.
It’s important that you and your family discuss an action plan to enact in the event of your death, to secure their financial security. Consider what their earning capacity would be without you, and if they could downsize, or relocate, to pay off outstanding debts or mortgage.
What are the benefits of life insurance?
Life insurance is the best way to protect your family if you pass away. The lump sum payment that they receive in the event of your death can:
- Cover funeral expenses
- Cover your family’s day-to-day living costs
- Maintain your family’s current quality of life
- Repay outstanding mortgages, debts and loans without selling off assets
- Contribute to, or cover, the education of your children/grandchildren
- Be bequeathed to charities, or non-for-profit organisations
Whatever your financial situation, or earning capacity, life insurance will protect your family if the worst is to happen.
Need life insurance to protect your family when you’re no longer here?
If you don’t want your family to suffer financially when you’re gone, then take out life insurance with Guardian Group today. Our team of understanding advisers will ensure that you get the right amount of cover for you and your family’s income and lifestyle. We offer both stepped and level premiums, and tailor all our policies to best suit your financial needs. If you want to get an estimate of the life insurance you require, give us a call or grab a quote online.