5 Things to Know Before You Get a Life Insurance Policy in Australia
Everyone knows how important it is to have life insurance. The problem is that many people still don’t have a policy; one reason for this is that they are not familiar with it and don’t know where to start. In this post, Central Coast Financial Planning Group, your trusted financial adviser on the Central Coast, will share what you need to know before you get started with a life insurance policy in Australia. Here are the things you need to know and understand:
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You Need Life Insurance If You Have Dependents
This is the most important reason. Let’s say you are the only breadwinner in your family. Your children will need their basic needs of shelter, food and clothing met and as young adults, many will move onto university. Who would pay these expenses? Only you! Life insurance is designed to take care of your entire family, especially your dependents. This is the most crucial reason you need life insurance.
You Need to Understand How Much You Need
If you have dependents, you must know how much money is needed to care for the various things your family needs. This will enable you to feel confident about how much money your family will need should you pass away.
Also, if you have a life insurance policy in Australia, you need to understand what it will provide for your family. For example, if you take out a $500,000 life insurance plan, you need to understand what it will do for you and your family. For example, would this only be sufficient to cover the remainder of your mortgage? Or would you need to apply for a higher level of cover? The plan can provide for your family’s living expenses while trying to get back on their feet.
Getting Some Life Insurance Is Better Than Not Having One
It might be tempting to say that you don’t need it because you already have savings. But it would be best if you kept in mind that life insurance’s sole purpose is to protect your family. Also, if you suddenly pass away, you don’t want your family to be left with nothing. You’ll want them to have at least some sort of life insurance.
Saving up for your family’s future is important, but life insurance is also critical for you and your dependents. You need to seek out an insurance provider and discuss the different plans you can get. Make sure that you get a plan that will cover your family adequately.
Life Insurance Is Not As Expensive As You Believe
Some people think that life insurance is too expensive, but this is not true in most cases. For example, you can get term life insurance reasonably cheaper if you take out the cover whilst you are young and healthy.
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 it usually only pays out in the event of your death.
The Stability and Reputation of the Life Insurance Company You Choose Matters
Some life insurance companies are more reputable than others. Thus, you need to understand that the company you choose matters. Find out about the company’s stability and reputation. Look at professional reviews of the business or seek the advice of a specialist insurance adviser who can find you a reputable insurance provider and a value-for-money policy.
Get a Life Insurance Policy In Australia Today!
As you can see, life insurance is vital for everyone, and it should be a part of your retirement financial planning. It will provide for your family’s living expenses and other financial obligations. This is why you need to get life insurance if you have dependents.
Also, you need to understand precisely how much you will need to take care of your family’s needs. The good news is that you don’t have to pay a lot of money for life insurance.
We hope this post has helped you understand life insurance and why you need a policy. It would be best if you found a reputable insurance provider to get the plan to fit your needs. If you need more help with your insurance advice, Central Coast Financial Planning Group is here for you. Contact us today to find out more about our services!
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.
