You’re working hard to maintain your lifestyle and provide security for your family as your responsibilities grow.
If you’re like most Australians you’re spending most of your time trying to stay on top of the bills, ferry the kids about and grab a breather when you get the chance. The last thing you want to think about is something going wrong. Life insurance may seem a low priority, but this could prove to be both costly and time consuming.
Take a moment to consider what would happen in the event that you or your partner became seriously ill or disabled and couldn’t work.
- What’s your back-up plan if something bad happened to your health and you couldn’t work?
- Would you want to sell the house?
- Could you see yourself relying on welfare?
- What’s your back-up plan if something happened to the health of the ‘homemaker’ – who would look after the children and maintain your way of life?
- Would your family or friends be in a position to help?
- Would your plans for your children’s education be put in jeopardy?
- Do you want to be playing ‘financial catch up’ for the rest of your lives?
What next?
There’s a fair chance that your super provides some degree of Life Insurance cover. It’d be wise to find out what and how much. You may then want to consider either increasing your cover to better protect your future or taking out separate Life Insurance, Total and Permanent Disability Insurance, Trauma Insurance or Income Protection Insurance. You may also want to consider taking out insurance for the ‘homemaker’ to ensure you’re able to maintain your way of life. And the cost? It’s likely to be less than the cost of a coffee a day. Now, that’s not much for peace of mind and family security.
- Take a minute to check your super fund to find out what your current levels of cover are.
- Check out the Lifewise insurance needs calculator. It'll provide you with an estimate of your insurance needs in a matter of minutes. But remember, this is only an estimate.
- Talk to your family and friends about it or seek advice from a professional financial planner.
Keeping up the good work
It’s important to remember that your insurance needs change as your circumstances change. Remember to reassess your needs if you take on more debt or reduce your debt. Growing your family, receiving an inheritance or getting a pay rise may all be good times to review your needs.
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Seven years ago Steve was a healthy 33-year-old with two young children, juggling a busy family life and only just realised his dream of starting his own timber business.