Like most people, you have probably heard of the term ‘life insurance,’ but you don’t know what it is, how it works, or how to start if you want to get a policy. If that’s the case, your trusted financial advisers on Central Coast are here to share some of the most important things you need to know about life insurance:

Securing Financial Wellness for your Family

No one is immune from life-changing events that can shift the course of a family’s future. The sad fact is, people get sick, people have accidents, and people can pass away – a lot sooner than we ever expect them to.

Life insurance is there to provide a lump-sum payment in the event of your death to cover expenses arising from your death and help your family to survive financially in the absence of your ongoing income.

But how do you put a dollar value on what to leave behind for your family? It’s a complicated and confronting decision to make. In fact, an insurance study by Metlife found that 57% of survey respondents didn’t know how to calculate how much cover they need.

Life Insurance Is Inexpensive

If you were to compare the cost of life insurance to other insurance types, it is typically cheaper than many different insurance options. It is more affordable because usually only pays out in the event of your death.

There is a general perception that Life Insurance premiums are expensive, however, according to a 2015 Insurance Barometer Study by LIMRA (a global insurance industry research organisation), 80% of consumers misjudge the cost of life insurance – Millennials overestimate the cost by 213% and Gen X by 119%.

Life Insurance Can Be Beneficial For Anyone

Each insurer offers unique benefits and covers different needs, even in a Life Insurance policy, meaning that most people can benefit from life insurance, regardless of their medical or financial situation.

Examples of additional benefits include a terminal illness payment, advancement for funeral expenses, a financial planning benefit to help with the cost of a Statement of Advice, there may also be an accidental injury benefit that attracts a partial payment of your sum insured.

Life Insurance Is An Easy Way To Provide For Loved Ones

One of the most significant advantages that life insurance provides is that it can help you provide for your loved ones in the event of your death. This is particularly useful if you were to die unexpectedly and had not taken many steps to financially prepare for that possibility.

Life insurance can give you peace of mind that your family will remain in strong financial health after your passing. The policy payment will help your family to reduce their overall stress and enable them to successfully manage daily living expenses, protect against future unplanned expenses and financial shocks, as well as continue to save for future goals.

You Can Shop Around For The Best Insurance Policy For You

There are many different companies providing life insurance in the Australian market, and you can purchase any type you like. While you should always shop around for the best deal, you should also be aware of what you’re getting yourself into. How you purchase your policy, the insurer you use, and the actual policy’s premium rate, premiums structure and additional benefits will all be contributing factors when deciding what works best for you.

It is best to speak to a Wealth Protection Specialist who has extensive knowledge of the Life Insurance market and a thorough understanding of what policies will benefit your current situation as well as future goals.

Bottomline: Get Insured Before It’s Too Late

The purpose of life insurance is to help you protect your family in the event of your death. 

It can be a highly beneficial tool if you know what you want and find the right life insurance policy. As long as you are aware of the basics of what life insurance is and how it can be helpful for you, you should be able to make the best choice for yourself. It’s also a good idea to seek life insurance advice from a financial adviser who can answer all your questions about it. 

Central Coast Financial Planning Group can provide you with the expertise of a financial adviser on the Central Coast. If you need life insurance advice or you want to know more about other financial matters, our experts are here to help you out. Contact us today to book an appointment!

DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.