Safeguarding your family

Life insurance will prepare you for family emergencies. Without it, your family and next of kin would be devastated – both emotionally and financially. Imagine what it would be like if you were taken ill and couldn’t work, or if you died. Would you or your dependents be able to survive?

Being unable to earn an income as a result of ill-health or an accident could expose your family and you to financial ruin. With life insurance, you will get the money required to keep you afloat.

If you already have insurance, you should review the cover regularly. This is especially so when something in your life changes – such as if you started a business, have kids, or you took out a home loan.

In this guide, you will learn more about life insurance, what it entails, and why you need it. Read on to find out more:

Types of Insurance

Before signing up for life insurance in Perth, you must understand how each policy works, what it includes, and what it excludes. That said, there are many different types of cover. Depending on your personal circumstances, you need one or more of the following:

  1. Life Cover

Commonly referred to as death cover or term life insurance, life cover will pay your next of kin for a specific amount of time after your untimely death.

  1. TPD (Total and Permanent Disability) Cover

This type of insurance will pay a lump sum to help you with living and rehabilitation costs if you are permanently and totally disabled. Insurers typically bundle it together with life cover.

  1. Trauma Cover

Trauma cover will protect if you are diagnosed with specific injuries and illnesses. The policy includes the major injuries/illnesses that will significantly impact your life – such as a stroke or cancer. At times, it is referred to as recovery insurance or critical illness cover.

  1. Income Protection

Another type of life insurance, income protection will replace the earnings you lose due to your inability to get meaningful employment due to sickness or injury.

How Much Insurance Do You Need?

If your insurance is offered by a super fund, it will be cheaper than if you go to another provider. However, you still need to shop around until you find a policy that perfectly suits your needs.

There is no absolute right answer to the question: “How much insurance do I need?” That said, the more the insurance you get, the greater the level of protection you (and your beneficiaries) will enjoy.

The level of cover you sign up for will also depend on your income and what your financial situation can allow. Therefore, the best thing to do would be to prioritise. To arrive at the right level of insurance for your particular needs, consider the following:

a) Family Income

Think about the amount of money your family will have should you become disabled or if you were to die. Calculate your savings, as well as the amount you’ve stored up in existing insurance policies, shares, and superannuation.

Next, think about the level of paid leave you get and the kind of support your family would be able to provide. Remember, you might be entitled to workers’ compensation and/or government benefits if you were to get injured. However, these compensations might also be reduced if you have income protection claims.

b) Family Expenses

You should also consider the amount of money your family will need in case the worst happens. While calculating this figure, consider the size of all your debts, mortgage payments, as well as education, childcare, and any other cost you have to meet.

The difference between (a) and (b) above is the amount of life insurance cover you ought to get. Still, you might have to compromise between what your family can afford and what you would like.

Before you compare policies from different providers, check if your super fund already provides life insurance. You might find that you already have the cover you require.

Of course, changes in your lifestyle might force you to modify the level of protection you receive. For instance, if you have a large mortgage and children, you may consider getting more cover. Similarly, if no one depends on you any more or if you’ve cleared your mortgage, you might want to reduce your Perth life insurance cover.

CONCLUDING THOUGHTS

Over and above everything else, you cannot afford to continue going on as you do without proper life insurance cover. Choose an option that suits your present circumstances and review it against your changing needs every once in a while. Find more information here: https://www.truelocal.com.au/business/life-insurance-perth/osborne-park

 

What to look for in your policy

Life is full of things which are unexpected. It’s for this very reason that having a life insurance policy is something that you need to protect your family and loved ones in the event of death, demise, or other catastrophic events which might occur. Even individuals who are strong, healthy, and have everything going well in their life, are threatened each day by life’s catastrophes, dangers, and unexpected events. When choosing your policy, these are a few of the many things to look for in your policy coverage.

Do you need life insurance?

Of course everyone wants to believe that they are healthy and going to live for many years to come. But a terminal illness, a major accident, or any other catastrophic event can truly hinder those plans you’ve had of a long life, and take you before you are ready to go. Of course if you are single, have no children, no spouse, and nobody to take care of, it might not be necessary for you to take a life insurance policy out on your life. If however, you do have a family, you are the person who earns most money for the household, and want to ensure your family and loved ones are taken care of financially after you have passed away, then the answer is yes, you should consider investing in life insurance.  And no, it is never too early to begin. So even if you are just shopping and starting the comparison process, you will have to understand the nuances, differences in policy terms, and coverage levels, as it pertains to life insurance, so as to ensure you choose the right premium and levels of coverage based upon your family’s needs. Below are a few things to consider, to get you started in the decision making process when comparing insurers.

Death/terminal illness.

If you die because of a terminal illness, you want to know that your family is going to be protected. Make sure the policy that you do choose covers this specific factor, otherwise you might not receive a justifiable amount for your family to receive upon death. Many insurers will even pay upon diagnosis, depending on the type of coverage chosen and the details in your policy.

Factors to consider when choosing your policy.

Of course every insurance company is going to try to sell you on choosing them for your life insurance policy. So before you decide on a policy and an insurer, you should consider some of these important factors:

  1. Ease of arranging your policy – No need for medical testing, easy online application and no hoops to jump through.
  2. 24 hour world-wide coverage – You never know where you will be or when you might pass away, so you need a policy that travels where you do.
  3. Advanced lump sum payment – From funeral arrangements to last expenses, you don’t want your family paying this out of pocket, so you should choose a policy which offers lump sum payment.
  4. Inflation protection – Cost of living has increased over the years so will cost of insurance. When choosing an insurer, go through one which won’t increase your rates because of market increases.  Of course these aren’t the only factors one has to consider when choosing a policy and an insurer, but this is a good starting point in helping you find a company that is reliable, one which is going to provide you the coverage you need (where and when you need it), and one which is going to provide you the protection which will ensure your family is going to be taken care of when you aren’t here to take care of them any longer.  Nobody wants to think of their death, but the older you get, the more you begin to think and discuss these topics with your spouse and family. When choosing a life insurance policy, you want to know you are purchasing from a reputable insurer, and one which will custom tailor the perfect policy for you and your family’s needs.  When the time comes to choose your policy, these are some things which can help you narrow down prospective insurers. Of course you need to compare quotes and coverage to ultimately choose the right policy and premium you can afford, in order to protect your family during the most difficult periods immediately following your death.

Reasons Why Life Insurance Is So Important For Everyone

Life insurance coverage offers financial safety to beneficiaries left by the insured individual upon his or her death. Coverage comes in two different kinds – term life insurance and permanent life insurance. Both forms of insurance offer you death benefits for an exchange of a policy holder’s premium. Nevertheless, the latter provides cash value cost savings as well as the death benefits. People with others who depend on them for financial stability should be especially careful to take a long look at what things would be like without their pay check.

Life insurance pays out when you die. This means that by default, it isn’t very useful to the person who is actually covered. Instead, the policy is designed to protect your loved ones from the lack of income you would have otherwise provided. Single-earner households are the most at-risk for poverty after the death of the breadwinner. The typical family set-up used to see the father working and the mother staying at home with the kids. Generally, the stay-at-home parent doesn’t have the education, experience, or ability to make up the gap in income should the breadwinner pass away. This is a situation in which life insurance can come in handy.

Other people who might want to consider a life insurance policyare those who are only just making ends meet with two incomes. In this situation, losing one person’s income could be almost as catastrophic as in single-earner families. As such, we need to see why being covered is a good idea.

Paying the final costs of the deceased

When someone passes away, some expenses come as a result. Such expenses can include medical bills that were not covered by health insurance, funeral or cremation costs, estate administration fees or other obligations that need to be covered. Especially when the deceased was the sole breadwinner in the family, funds tend to get tight on their passing. The proceeds of the insurance ensure that the transition is not felt as such especially on the financial front.

Paying off debt

We all have a debt to pay. In case the deceased had any outstanding debts, the life insurance benefits can go a long way in paying-off the debts. Sometimes it can be a loan at the bank or even a mortgage that hasn’t been completed. The beneficiaries can use the proceeds to offset the debts and in some cases even stay debt free. In cases where the deceased had young ones still in school, the money can be used to fund their education till college, therefore, relieving the ones left of this enormous commitment.

As an inheritance

Taking out life insurance is a good idea since you can name your heirs as beneficiaries. If you have already set aside a sum for your heirs, the proceeds from the payout can also supplement the inheritance you left. If you do not have any family to leave the estate to, you can add a charity of your choice as a beneficiary so that they can receive the funds once you pass on.

As a savings tool

Not all policies are payable after your death. Depending on the terms of the contract, you can be set to receive the money once you are in your old age. If you took out the policy when you were young, it could be used as a savings scheme so that when retirement arrives, you can use the money to fulfil future goals such as paying for your child’s marriage or travelling the world. Therefore, you get to enjoy protection as well as savings.

Favourable when it comes to taxes

Unlike other financial instruments, life insurance is treated more favourably when it comes to taxation. Unlike other insurance covers, death benefits enjoy a tax-free privilege to the beneficiary. This means that if the cover is for a million dollars, your beneficiaries will get a million dollars not less. If there were loans taken out on the policy, then the loans also enjoy a tax-free income status.

Most people are usually misinformed when it comes to life insurance. Getting the right information is key to securing yourself a proper policy where you can have peace of mind that if anything happened to you, your loved ones would not suffer financially. If you live in the Perth area, you can get a good life insurance policy by visiting our website.

 

Key Elements of Life Insurance

When it comes to safeguarding your future, as well as those around you, the best way is through insurance. There are many different types of insurance policies. One of the best ways to protect your family is with life insurance. While many people have this form of insurance, very few individuals actually know what it entails. There can be a lot of confusion when it comes to life insurance. The main reason behind this is due to the level of complexity with this form of insurance. The simplest way to know what you are signing up for is by contacting your insurance company.

When and why you need life insurance

When applying for your first life insurance policy, the basic question that most people tend to ask themselves is why they need it, or furthermore, when is the right time? This section will help you clear your mind. The following reasons will be able to answer the following question: Why and when do you need life insurance?

– If somebody relies on you financially. In the case that you have dependents, for instance a family, having a life insurance policy is the best way to ensure that after you pass on, they will be able to cope with the day-to-day costs of life. However, if you feel that you are financially stable and your family will not suffer financially, then there is no need for life insurance. – Job occupation. Some jobs can be highly risky, and in order to save your family from financial peril, it is advisable to opt for life insurance in order to reduce risk.

What you need to know about life insurance

In order to avoid confusion in the field, there are some key points that you should note. These points will be able to give you a brief description on what life insurance exactly is.

  1. Life insurance does not dictate the monetary value of the insured person’s life. It simply isn’t true that taking out a life insurance policy is exactly the same thing as putting a price on the value of your life. It simply matters on how you look at it. Life insurance is a way of safeguarding the lives of those around you. For instance, if you take out life insurance and you pass way, then your insurance will help to lessen the financial burden during the mourning period. This is the main reason as to why it is highly important for the main bread-winner of the house to take out the insurance.
  2. There are different roles of each player in the policy. In each policy, there are four parties involved. The four parties include: the insurer, the owner, the insured and the beneficiary. Each of these individuals has a different role to play in the life insurance policy*.
  3. Life insurance is not an investment. This is what most people tend to get mistaken with. This form of insurance is essentially a method of risk management. It is designed to eliminate future financial risk for your family. These are the three main points that you should learn about life insurance. It is however important to take note that when it comes to any form of insurance there are usually two main categories. They include term and permanent insurance. Term insurance is based on a set period of time. This means that the company relies on the probability that the insured might pass away in a specific period of time, for instance after 10 years. Once the set period has passed, you will need to renew the policy, and this means that you may end up making payments for nothing. This is why most people prefer the permanent form of insurance payment. Though it has a similar format, it has an added advantage since it includes a saving mechanism. It is up to the person being insured to take the time to research the best company within their location. These are some factors that you can take into consideration to guide you on this process.

 

*-Insurer. This is the company mainly responsible for paying out insurance claims. 

– Owner. The main role is to make the premium payments to the company or insurer.

-Insured. This is the person who has taken the life insurance policy or the person whose life it is based upon.

– Beneficiary. This is the individual set to receive the insurance claim. For instance, the next of kin.