It's a regular day for Sarah, a 41-year-old marketing manager preparing for a major presentation…
For family, nothing is beyond reason. We especially want them to be well-taken care of, especially if something were to happen to us. Luckily, life insurance can help.
Life insurance is a product that serves one purpose only: To make sure that your family is taken care of financially if you are no longer around. It’s not only for high-earners or multi-millionaires but for everyone–young or old, married or single, healthy or not—it’s something that everyone should have.
However, before buying life insurance, you need to know certain things first to ensure you make the best decision. We’ll discuss more of these in great detail, so read on below to get started.
#1 – Having Life Insurance Means Financial Security
As an adult, it’s common to wonder how long you will be around and whether or not you’ll be able to take care of the people you love. Life insurance will hopefully take care of your loved ones if you pass away prematurely.
Life insurance will help pay for the rest of your mortgage payments, help your beneficiaries pay for your funeral and other related expenses, and help provide for your family and children’s future financial needs.
#2 – How Much You’ll Need
The amount of life insurance you will need depends on your financial situation and your family’s future needs. If you have a big mortgage, you’ll most likely need more than someone who rents a place.
Make sure you know the amount needed, and more importantly, the amount you can afford. If you think you afford to pay for life insurance month after month, you should get multiple quotes to ensure you’re getting a fair price.
#3 – When to Get Life Insurance
While some people think that it’s okay to wait with getting life insurance until you have a family or children, it’s better to get it before.
If you have not yet become a parent, it will be much cheaper and easier to buy a life insurance policy. You never know when you become a parent, and it’s best to secure your family’s future as soon as possible.
#4 – Insurance Applications Have Different Outcomes
Some insurance companies will approve your application, while others will deny it. This is why you must have multiple quotes to compare the prices and determine which one is the best for you. We can help you get the best rates with multiple quotes.
Insurance applications work differently, including a health exam and the amount of money you put down for your monthly premiums.
#5 – The Super May Not Be Enough
If you have a super fund, you’ll need to ensure that your superannuation will be enough to cover your family’s future financial needs. Make sure to look at your life insurance policy to see how much it will pay and how it will be paid.
#6 – Little Coverage Is Always Better Than No Coverage at All
It’s imperative that you at least have some sort of life insurance coverage, as it will make sure that your family will not go through financial hardship if you were to pass away prematurely.
For example, you can get so much coverage for $250 a month. That’s a small sum to pay for the number of benefits it can potentially give you in the long run.
#7 – A Financial Advisor Can Help
Working with a financial planner can significantly help you. A financial planner can help you understand your situation and help you find out exactly how much life insurance coverage you’ll need to have. But that’s not all they can do. A financial planner can also help you find the best insurance options available and recommend the life insurance that’s right for you.
Life insurance is essential, and you need to make sure you have enough coverage for your family. Make sure you have multiple quotes to get the best rates and coverage for you so that you and your family’s futures are secured for the better.
Coastal Advice Group provides top-quality services for wealth management in Australia. We understand the needs of our clients, so our comprehensive solutions are specifically tailored to meet financial goals to ensure a brighter future. Contact us today for a consultation! We have offices located in Newcastle, the Central Coast, Sydney, Port Macquarie, and Byron Bay. Call or book online to secure your complimentary first appointment with us today and get started!
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.