Life Insurance is something you might have thought about but have you stopped and thought why you would need it?
Imagine the household expenses on one income, or worse, if a single parent – the loss of an entire income. The mortgage, rent continues, as do rates, utility bills, transport, and all the other household costs and your family may require financial support for many years. Life cover provides protection and peace of mind for your loved ones to:
- Cover funeral costs
- Repay the mortgage / continue with rent
- Clear debts
- Replace income so your partner could have time off
- Pay for childcare and other family expenses
- Cover school fees / university
- And if diagnosed with a terminal illness, you can take that family trip.
Life Insurance provides choices
It might mean being able to remain in the family home, taking some time away from work, working fewer hours while the children are young, or keeping future plans on track. Or simply having the breathing room to make decisions without financial pressure driving them.
Cover starts with questions around your life
- Who relies on you?
- What financial contribution would disappear without you?
- What responsibilities remain?
- What choices would you want for your family?
- What financial security would mean to them?
It’s not just about the bread winner
It is not just about the person earning the most that would have the financial impact. A parent working part-time or at home with children would also have a financial impact on the household. All the household responsibilities that they look after on a day to day basis, may become an expense that the remaining parent would need to cover.
Life Insurance provides a financial safety net for your loved ones in the event of your passing and can provide you with assistance should you suffer a terminal illness. It can help cover expenses like mortgage payments, debts, funeral costs, and future financial needs of your family.
Life Insurance lump sum
If an eligible claim is accepted, the policy pays out an agreed lump sum. This can be used for larger financial needs such as reducing or repaying a mortgage, clearing debts, meeting immediate costs, or creating a pool of money for the family’s future. Depending on the policy, a Life Insurance benefit may also be payable on a qualifying terminal illness.
Life Income cover – regular monthly payment
Rather than providing all the money at once, this type of cover is designed to provide beneficiaries with a regular monthly payment after the insured person’s death, usually for the benefit period specified in the policy. Its purpose is more closely aligned with replacing some of the regular income the household has lost and helping the family maintain ongoing financial stability.
What if you are still here and life changes?
Death isn’t the only event that can have a significant impact on a family. A serious illness can also change the picture, particularly if it affects your ability to work, creates additional expenses or means you or your partner need time away from work. This is where Trauma Cover can complement Life Insurance.
Trauma provides you and your family a lump sum in the event of you or your children suffering a critical illness or serious accident. This cover provides financial flexibility, help manage financial commitments, or give you and your family more choices if life needs to temporarily look different.
This is why understanding your “why” should become before choosing a policy. It’s about understanding how different life events could have a financial impact on your family, what you want to protect and then, considering the types of cover that could help provide that financial support.
What would you want to remain financially possible for your loved ones you leave behind? This is your why for Life Insurance.
We look at your personal circumstances and help tailor cover to protect the bigger financial picture , so in the event that you are no longer here, your family has the financial support to keep everyday life moving. Book a free appointment so we can discuss your options Let’s discuss your right cover for your life.
This article is intended as general information only and should not be considered personalised financial advice. Insurance recommendations should always be based on your individual circumstances, financial objectives, existing cover and the terms and conditions of each policy. Lifestyle Cover can help you understand your options and tailor a protection strategy that’s appropriate for your needs.