Do I need life insurance?

Life insurance provides financial protection for your loved ones. And peace of mind for you.

Just imagine if something happened to you. How would your partner meet your combined financial commitments? The burden of debt, household expenses and raising the children would become the responsibility of one person instead of two.

A life can never be replaced. But if tragedy strikes, a lump sum payment from a life insurance policy may help a surviving partner and family members to cope financially – whether it’s for car loans, a mortgage, credit card debt or school fees.

It’s impossible to place a value on life. However, you can quantify debt and the cost of living and other like expenses that will always need to be met.

There are many things to consider when working out the sum to insure.

For most people, the mortgage is their biggest financial commitment. So as a start, you could consider the sum insured to cover the outstanding debt on the family home.

If you have young children, they will be dependent on you for many years. A lump sum payment could provide a future income stream to cover the cost of their care and schooling.

Some of the features to think about when choosing a life insurance policy are:

  • How the premiums are structured – level or a stepped increase from year to year?
  • Is a lump sum payable only on death, or will a serious medical condition or terminal illness attract a benefit?
  • What if your circumstances change and you need to increase the sum insured?
  • Will the sum insured be indexed to keep pace with inflation?
  • Can a serving member of the ADF be covered even when deployed to a war zone?

Different policies have different features. So your choice of life insurance policy will largely depend on your age, occupation, personal circumstances, needs and general health.

Call Defence Health on 1800 676 465 or visit our website for details on the products we distribute.

 

Disclosure: This information is of a general nature only and does not take into account your personal objectives, financial situation or needs. You should consider your personal circumstances and the relevant Product Disclosure Statement in deciding whether to acquire life insurance. You may wish to seek independent advice.

Category: ADF CommunityYour Insurance

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Article by: Defence Health