What is life insurance? Life insurance (also known as Term cover) will provide a guaranteed lump sum payment in the event of death. The lump sum is payed at claim – however to be entitled to this you would have a policy in place in which you pay a premium for – Just like car insurance.
How do I know what to insure myself for? The best way to calculate this sum is to consider your shortfalls – that is what income would be lost to my household if I were to die? How much would the education for my children cost? How much is left to pay off my mortgage?
More homes are lost in Australia, not due to a fire but due to loosing the income from the main bread winner to the household”
Who would get the money? When you take out your life insurance you can nominate a beneficiary, you can have one or more beneficiaries or the funds can go to your estate. It is a good idea to consider a Will when you take out life insurance – this way you can be involved in what actually is to happen to the funds if you were to die – Please see estate planning for more information.
It is important to consider adequate planning of the benefit amount (sum insured) and to consider appropriate ownership of the policy. For a full comprehensive plan contact us.