Is life insurance something everyone should have?

Well, actually… no. You may not need life insurance if:

  • you’re mortgage free, and
  • you and your spouse have enough assets/income for a comfortable lifestyle without working, and
  • your children are (self-sufficient) adults.

So, in your later years when life insurance premiums are at their most expensive, you may no longer need it. How good is that?

What about when you’re young and single? With no mortgage and no dependents? You still need to think about how you’d cope if something terrible happened.

  • In this case ‘Life Cover’ may not be worthwhile.
  • But ‘Trauma Cover’ could be.
  • And ‘Total and Permanent Disability Cover’ could be.
  • You may also want to consider  (tax deductible) ‘Income Protection Cover‘.
  • The good news is, when you’re young these types of cover can relatively inexpensive.


Who really should have cover?

If you’re a family breadwinner, with children or a spouse depending on you, how would they cope if you had a tragic accident or illness? How would they pay the mortgage (or the rent) and put food on the table?

If you’re a grandparent and you help your children out with the grandchildren — and you worry about how they’ll cope when you’re gone— you may wish to consider Life Cover (though it may be difficult to get if you’re over 65).

What about the premium?

Premiums vary greatly depending on the amount of cover you are seeking, and your age and lifestyle (especially whether you’re a smoker or not). They start around $10 per month for $100,000 cover, so most people can afford at least some cover.

Many insurers offer loyalty discounts if you have other insurance with them or cashback payments after you’ve been insured for a period of time, so it pays to shop around.

Remember, it costs you nothing to get a quote, and most insurers will provide a reasonable level of cover without medicals, blood tests, or complicated application forms.

Types of life cover

Life Cover – pays nominated beneficiaries a fixed amount of money if you die.

Total and Permanent Disability (TPD) Cover – covers the costs of rehabilitation, debt repayments and the future cost of living if you are totally and permanently disabled.

Trauma Cover – provides cover if you are suffer a major illnesses or injuries that will make a significant impact on a your life, (e.g. cancer or a stroke).

Income Protection Cover– replaces the income lost through your inability to work due to injury or sickness.


What are your thoughts?

Are you considering purchasing some sort of life insurance cover? Did we leave anything out? Is there anything else you’d like to know about life insurance? Do you have any other insurance questions?

Join the conversation — leave a comment below and let us know what you’re thoughts are.

Pin It on Pinterest