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As you get older, the risk of insuring your life increases and so do your premiums. So it follows logical that the earlier you start, the lower the initial premium. Also, when we are younger and starting up in life you generally have more debt. The average Australian mortgage is now worth more than $345,000 - but what happens to that debt when you die? Your debt could end up with your family, burdening them with an asset that is difficult to sell quickly and repayments that are due now.
Life insurance offers a lump sum payment to your estate or beneficiaries, enabling them to utilise appropriately now you are gone, including paying out a mortgage and thereby giving your family an asset, not a liability.
Life is unpredictable, when we are going to die is equally unpredictable, particularly when we are young. So ensuring you have sufficient life insurance to pay out your legacy debts and eventually, to protect your own family, is important.
The most common causes of death and therefore Life Insurance Claims are as follows:
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