If you happen to be lounging in front of the television at three thirty on a week day afternoon, you may notice the sudden abundance of life insurance, health cover and funeral ads. Morbid? Perhaps. Necessary? More than you think…
by Anna McDougall, Money Maven
Before you change the channel think about this; only 4% of Australian families with dependent children have a sufficient amount of life cover in place. Find out when to consider your safety net and the best policy to suit your needs – single, married or other.
Life Insurance – sounds like a strange concept right? Especially if you’re more of a ‘live and let die’ kind of person, but the reality is accidents do happen and it is vital to provide your loved ones with a financial safety net so they can maintain their current way of life if you were to pass away.
Let Fred Schebesta finance expert and publisher of life insurance comparison website, LifeInsuranceFinder.com.au, take you through just how much cover is enough and how to go about finding the right policy.
When Should I Consider It?
Life Cover is really something worth considering when you have people that are financially dependent on you. Getting married, taking out your first mortgage, or the birth of your first child are key times to start looking at life insurance. There are also benefits, however, for those looking to take out cover when they are younger, as they may be able to take advantage of more competitive premium rates. This is because a younger person is likely to be in better shape when they are assessed by an insurance company’s underwriting division. Most insurance companies will let policy holders take out more cover down the track without having to undertake additional medical tests.
What if I am Single With No Kids?
Single adults can consider taking out Income Protection Insurance to ensure they keep their finances in order if they are forced to take time out of work due to illness or injury. An ongoing benefit of 75% of your regular income will be paid with additional benefits available to cover rehabilitation and nursing care while you recover. While WorkCover may provide assistance for injuries sustained at work, Income Protection will keep you protected from illness and injuries at home or on the playing field.
Fred’s Top Tips to Find A Policy to Suit Your Needs
Assess: Consider your current situation and what you need out of a policy. Weigh up your current debts (mortgage, credit card) and everyday living expenses to help you determine how much cover to take out.
Research: Take the time to research the different policy options available. Get an understanding of the different benefits and features on offer and assess their suitability for your situation. Cutting out expensive extras can save thousands in premiums.
Enquire: Make an enquiry with an insurance consultant. They can explain the different options available; compare quotes with you and kick start your policy application.
Finding suitable life cover without blowing your budget is easier than you think. Take the time to ensure you have the right protection in place to enjoy comfort and stability in an uncertain world. Don’t neglect the most valuable asset of all – your family and the ability to earn income.
