Life Insurance
Providing a financial safety net for your loved ones
We would rather not think of the time when we’re no longer around. But it’s important to protect the things that really matter – like our loved ones, home and lifestyle – in case the unexpected happens.
Life insurance (sometimes called ‘life cover’) is all about making sure your dependants have the money they need if you were no longer around. Its most important function is to replace the earnings that would cease at the death of the insured.
Losing your current and future income
If you die during your earning years, your family could suffer a severe economic loss as a result of losing your current and future income. Unfortunately, your family would still have to pay its regular bills, the mortgage and outstanding debts, and perhaps even continue saving for university and retirement.
Unless you’re independently wealthy, achieving these goals may be virtually impossible for your family with the loss of your steady income. Life insurance offers a way for your family to continue living comfortably and without worry.
Helps you to financially protect your family
We insure our cars, homes and even our mobile phones – so it goes without saying that we should also be insured for our full replacement value to ensure that our loved ones are financially catered for in the event of our premature death.
Life insurance helps you to financially protect your family. It could pay out a cash sum if you die while covered by the policy. You choose the amount of life cover you need and how long you need it for, and you can pay your premiums monthly or annually. When you reach different stages in your life that require protection the appropriate level of life insurance will enable your dependants to cope financially in the event of your premature death.
Coping financially during an otherwise difficult time
Life insurance provides a safety net for your family and loved ones if you die, helping them cope financially during an otherwise difficult time. Ultimately, it offers reassurance that your family would be protected financially should the worst happen.
We never know what life has in store for us, so it’s important to get the right life insurance policy. A good place to start is asking yourself three questions: what do I need to protect? How much cover do I need? How long will I need cover for? This sum must take into account their living costs, as well as any outstanding liabilities, such as a mortgage.
Obtaining the right advice and knowing which option to choose
It may be the case that not everyone needs life insurance. But if your spouse and children, partner, or other relatives depend on your income to cover the mortgage or other living expenses, then it will be something you should consider.
Life insurance makes sure they’re taken care of financially if you die. There are two basic types of life insurance: ‘term life’ and ‘whole-of-life’. But within those categories, there are different variations. So whether you’re looking to provide a financial safety net for your loved ones, moving house or a first-time buyer looking to arrange your mortgage life insurance – or simply wanting to add some cover to what you’ve already got – you’ll want to make sure you choose the right type of cover. That’s why obtaining the right advice and knowing which option to choose – including the most suitable sum assured, premium, terms and payment provisions – is essential.