Life insurance is an issue many of us put in the “too hard” basket… but this can have some dire consequences. So, let’s take a moment to think about it…
Life insurance protects you and your loved ones financially should something go wrong. In much the same way as you can take out cover on your house or your vehicle, when you take out life cover you pay a premium to your insurer and if something goes wrong, your life insurance helps cover the financial side with a lump-sum payment.
Most people have financial commitments such as a mortgage, personal loans or credit card debt and family who depend on their income. But what would happen if you were no longer around? The death of a family member is traumatic enough without having to add financial stress as well!
Many Australians who don’t properly manage their insurance portfolio find themselves in a situation where they are underinsured – but don’t know it until it is too late.
Insurance is about protecting yourself and your family, or your business, from a loss which you wouldn’t otherwise be able to financially recover from. However insurance is not simply a set-and-forget purchase. Although it does provide a level of peace of mind, changes often happen in your life that need to be taken into account if you want to properly protect what’s important.
When purchasing or renewing existing insurances be sure to take into consideration any changes that may have occurred in your circumstances. Changes may include:
- Having a baby
- Purchasing a new house or investment property
- Marriage separation
- Receiving an inheritance
- New occupation or salary
If any of these changes occur it is best to get in touch with us to discuss if it will have any impact on your current insurances.
Life insurance can also make sure you have enough money to maintain your lifestyle if you become ill, suffer a serious injury or became permanently disabled. Life insurance is like the life jacket in the boat – you hope you never have to use it but it’s comforting to know it is there.
There are five basic life insurances that are available to make your life financially secure no matter what happens to you in a physical way, these are:
- Term Life Insurance
- Total and Permanent Disablement (TPD)
- Trauma Insurance
- Income Protection
- Business Expenses
Each of these products provides for different circumstances – and the products offered by differing providers vary in terms and the extent of cover. It is important to choose the policy that is right for you. Over the next several blogs we will take a closer look at each type of life insurance.
We understand that it can be difficult determining what types of cover and amounts you might need, let alone choosing an insurer. Lakeside can assist by helping you determine your needs and recommend an insurer that is right for you. Why not schedule a meeting with Gerry or Clae at Lakeside Financial Planners now?
By Matrix Planning Solutions. Information current at 4 June 2015.
The advice is general in nature only and does not take into consideration your financial situation, goals or needs. Before making any investment product decision you should obtain a copy of the product disclosure statement. Please seek advice prior to acting on this information.