Life insurance provides protection for you and your family
Why You Need Life Insurance
Life insurance is important when it comes to protecting your family’s future. Let’s take this back to the basics, and look at what life insurance is and why you need it.
In the event that something happens to you, an injury or even death, life insurance will help your family financially in the difficult period that follows. You can have peace of mind that your family will be looked after, especially considering dealing with your mortgage, school fees or debts.
The idea of life insurance can seem overwhelming, especially when looking into it for the first time. Terms may sound unfamiliar and the idea of planning for what happens after your death can be daunting. With a little research these terms will make much more sense, and with a few helpful tips you can organise your approach.
Types of Life Insurance
- Assists your family with financial security in the case of your death
Total and permanent disability (TPD) cover
- Provides cover for yourself and your family in the case that you are unable to work due to a permanent disability
- Financial support for your family when you’re diagnosed with a serious illness or injury
- Continue to receive income if you are unable to work due to an extended illness or injury
What to Consider When Looking into Life Insurance
Consider your unique circumstances before you begin looking for a policy for the first time.
- Consider your needs and objectives
- Work out what is suitable for you
- What is excluded from your policy
- Some super funds include life insurance (although you will need to check how much and exactly what they cover you for)
- Disclose any relevant information during the application process (including any current medical conditions, medical history or participation in hazardous activities)
- Discuss your policy options with family and friends
Difference Between Stepped and Level Premiums
- A stepped premium is recalculated annually, and will fluctuate depending on your individual change in circumstance
- A level premium will stay at a base rate, although may fluctuate with inflation or changes to the insurers premium rates
Review your cover regularly
Review your cover regularly if you already have life insurance. Significant changes that should trigger a review of your cover include:
- Recently taken out a home loan
- Had a child
- Started a new business
- Your income has changed
Need some help?
Know how much cover you need. For help, ask Blenkhorn Financial Advisers about your Life Insurance options.