In the world’s current climate, it has become apparent just how quickly and unexpectedly things can take a turn for the worst, leaving many families in difficult financial situations.
This article highlights the importance of not only keeping your insurance updated, but also ensuring that your insurance is tailored to your lifestyle.
If there is anything we have learnt in the last two years, it is just how quickly things can change. Between devastating bushfires, floods, and a life-altering pandemic (just to name a few), the need to be prepared for the unexpected has never been made more apparent.
As confronting as it may be, it is essential to be aware of the grim possibility of unexpected death and the financial impact it would have on our family. Are they prepared and able to cover funeral costs? Will there be sufficient funds for living expenses? For mortgage repayments? It is a harsh reality but one we all cannot afford to ignore.
Unfortunately, approximately 58% of Australians have done just that and do not have enough life insurance cover to allow their loved ones to continue living at the same standard they were before the passing of a family member. This issue of under-insurance leaves many desperately scrambling for ways to make up the shortfall.
Appropriate life, total and permanent disablement, trauma, and income protection insurance is the only sure way to guarantee a financially secure future for you and your family, no matter what obstacles life may throw your way. We have previously discussed the different types of insurance policies in this article.
Understanding the policy types is one thing, knowing how much cover you need is the next issue. Our suggestion will always be to speak to a financial adviser who can guide you through the calculations, however you can always start the process yourself. Life insurance calculators are a great starting point; they are usually an easy-to-use tool that considers age, number of dependents, assets, debts, and more, to give you the most accurate estimate of insurance cover for your circumstances. Many insurance companies, super funds and financial institutions have calculators on their websites. The Australian Government has also provided one, which might be a good starting point – moneysmart.gov.au Life Insurance Calculator.
For tailored, expert advice, speaking with one of our experienced advisers who will help you secure the most cost-effective and suitable cover for your individual needs. You’ll also feel protected knowing your policy will be reviewed regularly to ensure it covers your current circumstances.
Let’s be honest; one of life’s great joys is not knowing what will happen next. And by planning for the unexpected, we can ensure our loved ones are provided for, no matter what may come our way!
