Life Insurance

So, what is Life Insurance and why would I need it?

Life insurance is similar to both your home insurance and even vehicle insurance policies. When you subscribe to a policy, you pay a monthly premium or fee to your insurer and if something should go wrong, your life insurance provider helps you cover the financial side. A life insurance policy can also make sure you have enough money to maintain your lifestyle if you become ill, suffer a serious injury or became permanently disabled.

Why do I need life insurance?

When it comes to deciding if you need life insurance you need to think about the things you currently pay for and who you support. What or who would you be leaving behind? Also remember that life insurance isn’t just in the event of your death – it can also cover you if you become permanently disabled, or suffer a debilitating illness or can no longer work.

Exactly how much life insurance do I need?

An easy way to work out how much life insurance you need is to start with a list of all the things you currently pay off, for yourself and/or your family and all your debts. These generally include things such as:

  • Your home loan or mortage
  • Your personal & vehicle loans
  • Your credit cards and store cards

Then consider the things you pay for that your family would still need if you are no longer there to provide for them, such as:

  • Dependent education
  • Food, groceries
  • Health Insurance
  • Car Insurance
  • Home Contents Insurance
  • Petrol and car maintenance

Create a detailed list of your liabilities and add up the cost. Next you’ll want to deduct the things you, or your loved ones, would be willing to do without, for example, an investment property, stocks, cash and savings contributions. The overall amount is going to give you a rough idea of the level of life insurance cover you really need.

A suitable policy requires tailored advice – everyone is different, or just the peace of mind knowing you have the best insurance policy to accommodate your needs, you can have a chat to one of our Financial Advisors, who would happy to really help you find a solution to suit your situation.