- Posted 25 Aug
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Unless you’ve perfected immortality, at some point in the distant future, you will need life insurance.
Life insurance gives your family financial protection when they need it most, when you’re no longer able to provide for them. No matter how old you are, any illness, disease or accident might cut your life suddenly one day.
In the face of such uncertainties, the best you can do is to make sure those who depend on you today are able to live peacefully and happily when you’re not there to provide for them.
That’s what life insurance does: provide for your family when you can’t.
Understanding the Need for Life Insurance:
- Childcare Costs – According to a study conducted by the University of Canberra, it was found that the cost for the average family to raise two children stands at a staggering $812,000as of today’s date.Even if your spouse has a good source of income, there’s a high chance that they will not be able to take care of this cost alone. Most life insurance plans are cheaper than you imagine. Buying such policies will take care of providing a good portion of childcare expenses once you’re gone.
- Education – University education in Australia in 2014 is considered to be one of the most expensive throughout the world. If you want your children to have the best opportunities, you will need to set up life insurance so that they may get the best possible education, should the worst happen and you’re not around to assist.
- Clear Debts – If you die before you’re able to pay off all the money you owe, your creditors will lean on your family to get the repayments. A life insurance policy will take care of this by paying off your debts and clearing all your loans so that your loved ones don’t have to worry about covering these expenses.
- Funeral Expenses – The cost of a funeral and burial can be very high. If you don’t want your spouse, parents or children to suffer further by having to pay for this, you will need to buy a policy that will cover most of the expenses of your funeral.
- Family Home – If you pay for your mortgage out of your income, you cannot afford to not buy life insurance. On account of your unexpected death and your family’s subsequent inability to make repayments on the mortgage, your house is liable to be taken by the bank and sold.To save your family from losing their house, life insurance would be very helpful, as it would ensure mortgage repayments are made on time and without hassle.
- To make sure your family’s needs are met – When you’re alive and working, everyone who depends on you relies on your income for most of their needs.If for some reason you’re not able to provide due to sudden death, a life insurance policy will pay for all these things on your behalf.
To learn more about life insurance and to get the best insurance quotes for your life stage or situation, chat with us today.