When things are going well, the need for adequate insurance cover may only be an afterthought, but what would you and your family’s life be like if either you or your partner became sick, injured or were to pass away?

Situations such as these could expose your family to financial stresses at an already difficult time, however appropriate insurance cover can help provide you with the comfort and peace of mind you and your family need at a time where your circumstances may unexpectedly change.

Depending on your personal situation, you and your family may benefit from one or more of the following types of insurance cover:

Example 1:

James is married to Liz and they have two young children together. While Liz takes time off work to look after their two boys, James is the sole income earner and as a result, the family are heavily reliant on him. They have a mortgage of $550,000 as well as living expenses of $50,000 per annum. James and Liz speak to their financial advisor and after evaluating their options, decide they would like to take out a combination of insurances to cover their debt and protect James’ income in the event that he might become sick, become injured, unable to work or pass away prematurely.

Example 2:

Allan and Margaret’s three children have left home and are no longer dependent on them. Although they are both still working with retirement a number of years away, they have reduced their mortgage significantly and their retirement plans are on track. Allan and Margaret meet with their financial advisor to review their insurance needs. While the level of cover they require has reduced, it is determined that they still need to retain a certain level of cover in the event that they were to unexpectedly become ill, with there being a history of illness running in the family. By retaining an appropriate amount of their existing insurance cover, Allan and Margaret help ensure their pre-retirement and retirement planning goals and objectives won’t be financially knocked off track by unexpected events.

Need help

For more information on determining your insurance needs, please speak to your financial advisor.

Take note

Insurance isn’t a set and forget strategy, you should always look to review your insurance cover when things do change as a result of life events such as getting married, starting a family, taking out a mortgage or beginning a new job or business venture. Getting help from a reliable family financial advisor can go a long way.

Click here to download a guide explaining more about how your family can benefit from insurance.

¹If the policy is held inside an Australian retirement plan (if applicable), the beneficiary of any death benefit will depend on the type of nomination made, and the validity of that nomination.

²TPD cover is often bundled with life insurance.

 

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