10 Dec 6 Good Reasons Why We Need Life Insurance
Life insurance may seem like a wasted expense within your financial plan, however, it can provide financial security for any of your life challenges. If you are still unsure why you need life insurance, here are six good reasons why life insurance is a necessity:
Avoid your home being repossessed
If your mortgage relies on the money you make, then you can’t afford to be without life insurance. In 2012 alone, a staggering 1,500¹ repossession orders in Australia were issued – that’s a record high! If you were to die unexpectedly and your family could not keep up with the repayments, your house could become just another statistic; the home you have worked so hard to secure would be lost and your family left vulnerable. However, protect your household with life insurance and you could ensure mortgage repayments are met, even after you are gone.
Cover child care costs
A recent study by the University of Canberra found that the cost for the average family to raise two children has now soared to an overwhelming $812,000². If you were to pass away before your children have grown, who would foot that bill? A payout from your life insurance policy could pay for the hours of childcare your children may need, and as plans are cheaper than you’d imagine, it’s a small investment to make if you consider nothing to be more important than your kids’ wellbeing.
Secure a good education for your children
Understandably, you want your children to have the best opportunities in life. As university education fees in Australia are now considered amongst the most expensive in the world, setting up a life insurance plan has never been so important. A payout could meet the costs to support your children’s future learning and careers in the eventuality that you are no longer around.
Safeguard your loved ones from inheriting your debts
A life insurance payment could write off your debts and ensure future bills are met – meaning that your loved ones won’t be at risk of being chased by your creditors for the money you owe. Earlier this year, the Children’s Commissioner revealed the disturbing truth that children as young as six years old are concerned over rising transport, energy and health care costs³. No parent wants their baby’s childhood destroyed by money worries.
Ensure funeral costs are covered
The average funeral costs up to an unbelievable $14,000⁴. As a funeral bill is one we don’t usually prepare for until someone close to us has died, we are left very little time to plan financially. Thankfully, life insurance covers funeral charges to relieve the financial burden on your loved ones at, what would already be, an incredibly difficult time for them.
It’s more affordable than you think
Shockingly, whilst 84%⁵ of Australians have insured their car, a mere 31% have protected their most important asset – their income. Whether you are the breadwinner or not, it’s likely that your income is fundamental to maintaining yours and your loved ones’ lifestyles. Many people don’t realise that life insurance not only provides a lump sum in the event of your death, but you can also set your policy up to pay out should you fall ill suddenly or become unable to work.
Looking for more financial advice?
Master Your Money Now are a financial planning firm based in Geelong who has helped everyday people get on top of their finances with tailored financial strategies. If you need some financial help don’t hesitate to book in a strategy session with us today.
- au.news.yahoo.com ‘Home repossessions at record high’,
- news.com.au ‘$812,000 – the cost to raise two children’,
- news.com.au ‘Children’s Commissioner warns our kids now worry about cost of living’,
- moneysmart.gov.au ‘Paying for your funeral’,
If this is a topic that you would like to discuss in more detail, please go to www.MasterYourMoneyNow.com.au/getstarted to book in your complimentary 30-minute strategy session.
Liked this article? Share it with your family, friends and work colleagues!
Disclaimer: This information is general information only. You should consider the appropriateness of this information with regards to your objectives, financial situation and needs. Past performance does not guarantee future returns.
Master Your Money Now is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL No. 236523. Head Office: Level 2, Cnr Maroochydore Road & Evan Street Maroochydore QLD 4558 Phone: 07 5406 5000 And is an Authorised Credit Representative of Outsource Financial Pty Ltd ABN 42 131 090 705 Australian Credit Licence No. 384324. Birkenhead Point Brand Outlet 19 Roseby St, Drummoyne NSW 2047. Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523Head Office: PO Box 1856 Sunshine Plaza QLD 4558 Phone: 07 5406 5000