1. Help your loved ones take care of daily expenses
Knowing that your loved ones will be taken care of when you are no longer around can give anyone peace of mind. Having a life insurance policy in place means that they can be adequately covered for various living expenses, such as paying bills, day-to-day expenses, debt, education fees and more. According to ABC, Australians forked out $3 billion in out-of-pocket expenses each year. Having a policy in place can prevent those out of pocket expenses that can create a debt spiral.
2. Cover funeral expenses
No one likes talking about death, but it is one of those inevitable things that need to be addressed at some stage. Let’s face it, funerals can get expensive. This is more so if have not prepared for it. According to ASIC, Australians can fork out $4,000 for a basic cremation process or end up footing a $15,000 or more for an elaborate casket. There is still a wide range of other fees such as funeral directors’ fees, ceremonial service fees, burial, and headstone installation to name a few. Having a life insurance policy in place can help remove the financial stress for your loved ones.
3. Set up a comfortable retirement nest
A recent poll by Compare the Market revealing that 1 in 3 Australians are less confident that they will be able to retire comfortably. Life insurance has a range of policies that can work towards helping you, your spouse, and your loved ones retire comfortably. Speaking to an insurer can help you know what options are out there and will be suitable for you to retire comfortably.
4. You can always start small and build
There is the misconception that life insurance is expensive. Not all policies are the same or have the same premiums. This will vary from insurer to insurer, and it will be based on your personal circumstances. That is why it is vital to talk with an insurer. Comparing various policies can also help you find one that is not only suitable towards your circumstances but also comes with an affordable premium.
You have the option to choose life insurance and slowly build with other policies such as income protection, TDP, trauma insurance and more. Always keep in mind that life insurance has policies that do not only cater for events where you have passed on but can also help you when you are still living.