Life insurance gives your family and loved ones a helping hand if you aren't around to look after them any more.
Most people don’t realise that a debt (such as a mortgage) doesn’t disappear when you die. Instead, the debt is passed to your surviving family, who then become responsible for paying it - in its entirety.
If you have a mortgage, you will want to make sure that the debt will be covered if anything happens to you, securing a place for your loved ones to live after you're gone.
Life insurance cover is designed to relieve your family of the burden of debt, if you were to suddenly pass away.
If you were to suddenly die, a lump sum is paid to your spouse, who can use that money to pay off the mortgage, releasing them from the burden of a lifetime of debt.
Other people use life insurance to cover for events such as their children’s education, their spouse’s wellbeing, or other expenses they do not wish to pile on their grieving family.
For full-time workers earning around $50, 000 per year, the average amount to cover the needs if you have young children is estimated at $500,000 to $650,000. If you have older children, the range of needs is less, but still significant, estimated at $300,000 to $450,000.
Your superannuation may come with life insurance cover, however, the amount that you are covered for within your super may not be very large - the estimated cover amount held inside super is just $70,000 for full-time workers with young children. Those with older children generally have $20,000 to $30,000 less than this.
Most parents with dependant children are underinsured, with average superannuation death cover only representing about 20% of the average family's needs.
Life cover can be surprisingly affordable, and with the option of obtaining some or all the cover inside super, there’s never been a more appropriate time to learn more!
If you want to protect your family, give us a call on 1300 060 668 for a discussion about the insurance options available to you.