What is life insurance and do I need it?
Posted in:
household & budget
You take out car insurance in case something happens to your car or home insurance in case something happens with your home. Life insurance is exactly the same, you pay a monthly premium to your insurance company and if something happens to your life or lifestyle your insurer helps cover the financial side.
Having life insurance protects your family financially should you become ill, suffer a serious injury or become permanently disabled.
Why do I need life insurance?
If you've got a family you'll want to feel secure knowing that if anything happens to you, they won't be left to struggle financially.
When you're deciding whether or not to take out life insurance you need to consider the things you currently pay for and they people you currently support financially – even in the smallest way.
Who and what would you be leaving behind if something happened? And remember - life insurance isn’t just paid out if you die – it can also cover you if you become permanently disabled, or suffer a serious injury or illness and can no longer work.
How do I know how much life insurance I need?
The best way to calculate how much life insurance you need is to make a list of all the things you currently pay for - for yourself and/or your family - and all of your debts.
For many people this would include:
Once your list is complete, add up the cost – then subtract the things you, or your family, could do without – things like an investment property, stocks, cash. The final amount will be an estimate of the level of life insurance cover you need.
How do I buy life insurance?
If you know what life insurance requirements you need, you can get quotes and apply online. If you feel you need advice on which life insurance product suits you, you may prefer to discuss your requirements with a professional. Many life insurers will provide both to suit either need.
Having life insurance protects your family financially should you become ill, suffer a serious injury or become permanently disabled.
Why do I need life insurance?
If you've got a family you'll want to feel secure knowing that if anything happens to you, they won't be left to struggle financially.
When you're deciding whether or not to take out life insurance you need to consider the things you currently pay for and they people you currently support financially – even in the smallest way.
Who and what would you be leaving behind if something happened? And remember - life insurance isn’t just paid out if you die – it can also cover you if you become permanently disabled, or suffer a serious injury or illness and can no longer work.
How do I know how much life insurance I need?
The best way to calculate how much life insurance you need is to make a list of all the things you currently pay for - for yourself and/or your family - and all of your debts.
For many people this would include:
- Your mortgage
- Your car loan
- Your credit cards debts
- Your investment property
- Education – calculate the cost to education your children to high school
- Rent
- Groceries
- Health Insurance
- Car Insurance
- Home Contents Insurance
- Petrol and car maintenance
Once your list is complete, add up the cost – then subtract the things you, or your family, could do without – things like an investment property, stocks, cash. The final amount will be an estimate of the level of life insurance cover you need.
How do I buy life insurance?
If you know what life insurance requirements you need, you can get quotes and apply online. If you feel you need advice on which life insurance product suits you, you may prefer to discuss your requirements with a professional. Many life insurers will provide both to suit either need.
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