It is glum to think about, but the one thing that is promised to us in life is that everyone is going to die. You can’t predict when or how you are going to die but you can prepare for it. One way to prepare is to have life insurance in Australia so that you family is not left financially destitute when the inevitable happens.
Types of Life Insurance in Australia
In the event of terminal illness or death, life insurance pays a lump sum to the surviving family. Term life insurance is the most common type of life insurance available in Australia. It is generally available to individuals between the ages of 17 and 69.
The importance of life insurance
Financial burdens are the last thing you want to be concerned about when a family member has just died. This pressure is even more unbearable if the deceased was the main breadwinner. A life insurance payment can go towards the following:
- Loan and mortgage payments
- To keep a business running
- Meeting the general financial needs of the family
How much life cover does a person need?
Everyone is going to have different needs. An insurance company is going to take several factors into consideration. They are going to look at your current debt and this includes your mortgage payments. For those who already have life insurance, they should inform their company when their circumstances change. If the loan amount increases on your mortgage, you may have to make extra payments each month to ensure that you are covered in the event of a payout. Insurance companies will also look at things such as education costs for your children, and future income requirements.
Until you have been evaluated by an insurance agency there is no way you can determine how much you will be paying each month. Your payments will depend on the following.
- Smoker or non smoker
- The amount of insurance required
- Current health status
There are several factors that can have an effect on your life insurance policy. This includes debt increase, changes to your children’s school fees and a change in your mortgage loan amount. To ensure that your family gets the finances that they are entitled to make sure that you inform your insurance company if there is a change in your financial circumstances.