But according to Lifewise, only 4% of Australians with dependent children have adequate life cover. Below I’ve broken down some important life insurance information, categorized by different life situations.
If you have no dependents, you probably believe you don’t need life insurance, and you might be right. But if you’ve purchased a house or investment property, life insurance can help you pass it on to family members without passing on any debt. At the very least, it’s good to know that your funeral expenses won’t leave a burden on anyone.
Likewise, if you plan on having a family in the future, now might be the best time to be accepted for premium life insurance rates.
Whether you’re married or single, if you’re working, your income is helping to maintain the quality of life of your children. If disaster were to strike, would your family be able to get by? Visit GIO.com.au to find out more about what coverage is sufficient for your family. Even if your regular life insurance plan is sufficient, look into options like income protection and accident insurance so that if you can’t work for a while, your family can still have supplemental income.
Stay at Home Mums
Even if you don’t work a regular job, your family relies on you fulfill vital needs. If you weren’t around, your partner would probably have to outsource a lot of your tasks, such as child care, and perhaps housekeeping and cooking. Adequate life insurance will allow your partner to pay off debts, supplement income, and have some ability to rearrange their work situation to better meet the children’s needs.
Small Business Owners
Entrepreneurs work hard to establish their businesses, and you don’t want all that work to be for nothing if something were to happen to you. If you co-own a business, suitable insurance can allow the business to continue to operate if a partner dies or becomes terminally ill.
Leaving a Legacy
No one wants to think about dying, but it’s an inevitable event for all of us, and lack of planning can really affect those left behind. Life insurance can help you prevent financial stress for your loved ones while they are mourning your loss. You can also use it to help out a cause you are passionate about, leaving a legacy to a charitable organisation close to your heart.
Life insurance, what’s your plan?