The three worst excuses not to get life insurance

Getting Life Insurance doesn’t mean that you are predicting your own demise. The primary goal of Life Insurance is to replace the income of the bread-winner in the family should something happen to you. You might receive advice from others, or even decide yourself, that this type of insurance is not necessary, and in some cases this might be true. However, here are three arguments you might come across whilst making that all important decision, and why if you listen, you’ll be faced with regret. 

The higher our life expectancy grows, the greater the need for Life Insurance grows as there is a greater likelihood that your family will still be dependent on you.  The general rule for not taking out Life Insurance is that if no one is going to be financially worse-off by your death then it isn’t entirely necessary.  However, there are some other common reasons people do not take out Life Insurance – if you are thinking of not obtaining it for any of these reasons, think again. 

My assets will take care of my loved ones 

It may seem logical if you have money saved, if you have a will, and if you have money in property or companies that you don’t need to have a Life Insurance policy.  However, there are still risks to consider.  You might not need to take out the insurance, but your family will need you to. If you have lots of assets, you cannot expect that your family will know how to run the companies or manage the properties successfully and come out with a profit. It might also not be profitable for them to sell up after your death.

A Life Insurance policy can save your family a lot of financial agony and disappointment if things do go wrong with your assets. 

I’m pretty healthy, Life Insurance is a waste

You might be at optimum health right now.  You get plenty of check-ups, you exercise, you don’t smoke, and you have an extremely healthy diet.  However, no one can predict what the future holds.  You never know when accidents or unexpected terminal illness can strike.  You can be healthy one day, then be struck down by a fatal accident, become a victim of natural disaster, pick up a nasty deadly virus, or find out you have a genetic condition.  

Life is completely unpredictable, and although the likelihood is that you will live to a ripe old age, there is always the risk of running into the unexpected and leaving your family exposed financially. 

I’ll just do it later, I don’t need it right now 

You know Life Insurance is important, and you’re meaning to get it sometime soon.  However, this might not be soon enough. Imagine if you are unexpectedly hit with a terminal illness.  Illnesses don’t necessarily creep up slowly and you cannot expect to know something is up and get the insurance simply if you predict something might go wrong.  The last thing you will want to think about when it comes down to it is insurance.  It is always best to have it there to protect yourself and your family before anything goes wrong.  That way the premiums are kept lower as your application is processed whilst you are healthy. 

Whilst many put-off purchasing Life Insurance because of the potential costs, compared to the relative costs of your family’s financial struggle after your death, it is worth the premium you pay.  Unfortunately this is a part of life we must face at some stage, and it is best to deal with it sooner rather than later. If you need advice regarding your Life Insurance options, contact Trade Cover WA today and we will be more than happy to help you.

Australians at an all time high risk of under-insurance

According the Australian Bureau of Statistics working Australian’s lives are under-insured by a whopping $800million. Non-renewals of Life Insurance are at an all time decade high, and with an increasing number of Australian’s falling victim to life threatening illnesses in their working lives, the future looks quite alarming. It is more important now more than ever to get yourself covered with Life Insurance. 

Why Life Insurance?

Life insurance can combine a number of different types of insurance under the one roof and can be tailored to your individual needs.  It can include Life Cover, Income Protection Insurance, Total and Permanent Disability, and Trauma Cover.  However generally speaking, Life Insurance pays out a lump sum to your beneficiaries in the event that you die or are diagnosed with a terminal illness. 

What can Life Insurance do?

The grief involved with the death of a loved one is hard enough to bear.  You can make the lives of those you have left behind much easier by choosing to direct the benefits to a particular person or persons, nominating a portion to go to each beneficiary, and choosing how quickly the payment is made.  Please note however that other additions such as estate management, funeral cover, power of attorney, and will management are not included in a Life Insurance policy. 

The money paid out can be used to cover expenses such as the family mortgage, children’s education, paying off debts, and savings for future living expenses.  In the case where you suffer an accident, are diagnosed with a serious or terminal illness, or suffer from a permanent disability you can utilise parts of your Life Insurance to pay you an income, to meet medical costs, modify your home accordingly for disability, and support you and your family at a time when they need it most. 

The hard facts of life 

Australians are failing to renew their Life Insurance as they see it as an unnecessary addition.  However, Life Insurance grows in its importance as you age, get married, and have children or loved ones which depend on you. 

Financial Services Council Chief Executive, John Brogden is concerned about the non-renewals which are adding to our huge under-insurance problem in Australia. He states that

“$200,000 or $300,000 is not enough if your 35 or 40”.  To cover mortgages, debts, education of children, or support loved ones a higher amount is necessary.  Many are dropping this insurance due to the cost of living; however the costs of losing you to the family will be far greater if you fail to obtain the right level of Life Insurance. Brogden states “the more people who have insurance the less people who are on the welfare, it’s a very simple formula”.

Ask yourself if those around you would financially survive without you. How would they cover the costs of a funeral, medical bulls, debts, school fees, or loans?

It is vital for Australians to take a look at their current Life Insurance policies or speak to a financial advisor to find out how much cover they might need.  And if you are thinking of dropping your cover, think again.  If you need advice concerning your Life Insurance policy or help with putting one together, contact Tradecover WA in Perth today and we will be happy to help.