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SOBERING FACT: For every home lost through fire, there are 4 homes lost through death.
Source: MLC
Life insurance is a crucial component to a family's financial plan. The reason is it enables the achievement of life's most important goals after you are gone - own your house, put food on the table, educate your children and continue to receive income. Further compounding this issue is that the ability to achieve these goals depends on the combination of time and money provided by both partners.
A common mistake families make in considering Life Insurance is buying cover only for the main income earner. The home maker is also a significant contributor - without them, the income earner may need to stop work to take care of the children. And face a loss of income on top of the tragic loss of a partner. Research indicates the average 'stay-at-home' spouse would cost more than $75,000 per year to replace.
Life insurance offers a lump sum payment to your estate or dependents if you die or are diagnosed with a terminal illness with less than 12 months to live. This money can be utilised to secure your family's lifestyle (with a regular income), assets (paying out the mortgage) and children's future (education funds and/or endowments). It is up to you!
Life is unpredictable, when we are going to die is equally unpredictable. As an example, over 1,600 people die in car accidents every year and most of them are aged between 26 and 59. So ensuring you have sufficient life insurance to pay out your legacy debts and continue to provide and protect your own family, is important throughout your lifetime.
The most common causes of death and therefore Life Insurance Claims are as follows:
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Please click on graph for enlarged version
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