According the Australian Bureau of Statistics working Australian’s lives are under-insured by a whopping $800million. Non-renewals of Life Insurance are at an all time decade high, and with an increasing number of Australian’s falling victim to life threatening illnesses in their working lives, the future looks quite alarming. It is more important now more than ever to get yourself covered with Life Insurance.
Why Life Insurance?
Life insurance can combine a number of different types of insurance under the one roof and can be tailored to your individual needs. It can include Life Cover, Income Protection Insurance, Total and Permanent Disability, and Trauma Cover. However generally speaking, Life Insurance pays out a lump sum to your beneficiaries in the event that you die or are diagnosed with a terminal illness.
What can Life Insurance do?
The grief involved with the death of a loved one is hard enough to bear. You can make the lives of those you have left behind much easier by choosing to direct the benefits to a particular person or persons, nominating a portion to go to each beneficiary, and choosing how quickly the payment is made. Please note however that other additions such as estate management, funeral cover, power of attorney, and will management are not included in a Life Insurance policy.
The money paid out can be used to cover expenses such as the family mortgage, children’s education, paying off debts, and savings for future living expenses. In the case where you suffer an accident, are diagnosed with a serious or terminal illness, or suffer from a permanent disability you can utilise parts of your Life Insurance to pay you an income, to meet medical costs, modify your home accordingly for disability, and support you and your family at a time when they need it most.
The hard facts of life
Australians are failing to renew their Life Insurance as they see it as an unnecessary addition. However, Life Insurance grows in its importance as you age, get married, and have children or loved ones which depend on you.
Financial Services Council Chief Executive, John Brogden is concerned about the non-renewals which are adding to our huge under-insurance problem in Australia. He states that
“$200,000 or $300,000 is not enough if your 35 or 40”. To cover mortgages, debts, education of children, or support loved ones a higher amount is necessary. Many are dropping this insurance due to the cost of living; however the costs of losing you to the family will be far greater if you fail to obtain the right level of Life Insurance. Brogden states “the more people who have insurance the less people who are on the welfare, it’s a very simple formula”.
Ask yourself if those around you would financially survive without you. How would they cover the costs of a funeral, medical bulls, debts, school fees, or loans?
It is vital for Australians to take a look at their current Life Insurance policies or speak to a financial advisor to find out how much cover they might need. And if you are thinking of dropping your cover, think again. If you need advice concerning your Life Insurance policy or help with putting one together, contact Tradecover WA in Perth today and we will be happy to help.