Protecting your assets
When you consider your assets, there’s none more valuable than your life. Do you know how your family would cope financially in the event of your death? Do you have debts that would be passed on to your loved ones? Sadly, 26,000 Australians who are of working age will die this year. The probability of death for men aged between 20 and 55 years is 1 in 10, and the probability of death for females in the same age group is 1 in 20.1 Serious illness and tragic accidents happen unexpectedly, so it makes sense to be prepared financially.
What is Life Insurance?
Life Insurance provides a lump sum payment in the event of your death or if you are diagnosed with a terminal illness. By taking out Life Insurance, you can be sure that your family will be able to pay the mortgage, give your children an education and provide for themselves if you are no longer around. Life Insurance is often packaged with Total and Permanent Disability Insurance and Income Protection Insurance for all-round coverage in the case of a tragic life event.
Why do I need Life Insurance?
Stop to consider the worst case scenario and ask yourself, “If my partner or I died, what impact would that have on our family’s way of life? Can my loved ones afford to pay the mortgage and provide for my children’s upbringing and education?” The statistics are startling:
- 60% of families with dependents will run out of money within a year if the breadwinner dies.2
- Cardiovascular disease is the leading cause of death in Australia accounting for 34% of all deaths in 2006.3
- It costs about $450,000 for the average family to raise two chi ldren from birth to age 20. For the average couple with two children today, the cost will be around $310 a week, or 23 percent of the average gross household income.4
- In 2009, life insurance companies paid out over 1 billion dollars in life insurance claims alone.5
Don’t I already have Life Insurance as part of my Superannuation?
Most Australians have a minimum level of automatic insurance cover through their superannuation, with the premiums normally deducted from the super balance. However, this minimum level of cover is not always sufficient, depending on your individual situation. It’s a good idea to find out how much Life Insurance you have in your super fund, along with how much it is charging you, and compare those factors to a separate Life Insurance policy that is targeted specifically at your needs, dependents and lifestyle.
How much does Life Insurance Cost?
Life insurance does not have to be expensive. For example, the premium for $500,000 life insurance cover in New South Wales for a man turning 40, who is a non-smoke and works a desk job, start from as little as $35.00 per month. Many people pay more than this to insure their car! Insure & Invest Market provides quality assistance in choosing appropriate life insurance. Our brokers will find the most suitable options for you and conduct regular reviews on your policy to ensure it remains appropriate.
- Statistics obtained from Paul R Davis MB BS FRACP, CMO RGA International Sydney, Chief Regional Medical Director RGA Asia Pacific.
- IFSA Research – “A Nation Exposed” (conducted for IFSA by Rice Walker Actuaries and TNS Australia, 2005)* Quoted from Paul R Davis MB BS FRACP
- CMO RGA International Sydney
- AMP/Natsem study: The Estimated Costs of Children in Australian Families in 2005-06
- Chief Regional Medical Director RGA Asia Pacific