Basics of life insurance
We insure all sorts of things we think are important like our house or car but what could be more important than your life? James Dunn takes a keen look at Life Insurance and provides a clear view of why planning is all about putting your family first when making a decision about the right amount of cover.
- sponsor - Wealth Know How
Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
Published on 18 Jul 14
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We insure all sorts of things we think are important like our house or car but what could be more important than your life? James Dunn takes a keen look at Life Insurance and provides a clear view of why planning is all about putting your family first when making a decision about the right amount of cover.
Sponsor - Wealth Know How
Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
-
Venezuela tension heats up
Duration 03:16
-
Aussie dollar surprises market
Duration 03:10
-
Markets climb as investors watch US healthcare bill
Duration 02:31
Life insurance provides the money you need when things go wrong. It may not take away the pain of losing a job or a loved one, but it will ease the added pain of financial problems.
But only about 6% of Australians with dependent children have adequate levels of life insurance cover, and less than one-third of Australians have income protection insurance.
Think about this:
Each year thousands of Australians are injured, suffer a serious illness or die unexpectedly. Statistics from the Australian Institute of Health and Welfare show that one in three men, and one in four women, will be diagnosed with a malignant cancer before the age of 75.
If this happened in your family would you be able to afford:
- The cost of a proper education for your children?
- The monthly mortgage payment?
- The cost of additional home help?
- The living expenses of your current lifestyle?
- Sufficient retirement savings?
Without adequate insurance the loss of family income and increased medical costs may force the sale of the family home, the sale of other assets or the running down of savings.Unfortunately, to work out the right amount of life insurance you need to imagine what your family's life would be like if you or your partner died or became seriously ill and couldn't work. How much money would you need to be able to survive financially, pay the mortgage and bring up your kids?
Planning for the worst is not morbid – it’s putting your and your family’s future first.
You may have some cover under your super fund, but it’s one-size-fits-all. For real peace of mind, you need to ensure that your insurance cover is tailored to your situation and your family’s needs.
But with so many companies providing different types of insurance, it's important to read the fine print, ask lots of questions and find the right policy for your needs.
When working out what life insurance you need, always read up on what’s included and excluded in each policy.