Everyone knows about life insurance, but many don’t realise that it’s not the only way to protect your family’s finances in the event of an untimely death. Income protection can also ensure that your spouse and children can maintain the lifestyle they’re accustomed to if you were to pass away unexpectedly, and can cover expenses like food, rent and tuition even when you can’t provide income yourself. If you want to ensure your family’s future financial stability, talk to an advisor about both life insurance and income protection today.
How do I protect my family if I die?
One of the worst things in life is to lose a loved one. You never really recover from that pain, and it is likely that your family will struggle financially in your absence. But here’s some good news: with life insurance and income protection, you can give your family some much-needed financial security should anything ever happen to you. Life Insurance: Death happens. And if it does, there are some expenses that your family will still have to pay — even if they don’t have any money of their own.
What happens if something goes wrong with my health?
One of your major goals is to stay healthy. A common misconception is that life insurance is only important if something goes wrong, but really it’s a way to help protect your family financially in case something happens. In fact, over one-third of people without life insurance die with debt. That’s more than 16 million families struggling after their breadwinner passes away! To ensure your family isn’t left with financial burdens should something happen to you, consider buying a term life policy and long-term care insurance if applicable. The sooner you do it, the lower your costs will be!
Will my superannuation cover me?
A common misconception is that superannuation cover from your employer is enough to replace lost income. Most people know what life insurance does, but fewer understand how important it is to have a plan for any additional expenses that arise if something happens to them. Income protection can fill in any gaps that are left if someone loses their job or misses out on an opportunity because of their injury. This can make all the difference when trying to remain financially secure while they’re recovering. If something happens before you’ve saved up enough money, though, it’s best not to run up high-interest credit card debts while looking after your loved ones; these types of loans can quickly spiral into unmanageable debt loads that won’t do anyone any good.
Is life insurance the same as income protection?
Life Insurance is all about protecting your family in case something were to happen to you. Income Protection on the other hand, is designed to replace your lost income for a set period of time. These two types of products often get confused or misunderstood, so we wanted to make sure we cleared up any confusion around their differences! The most important thing is to understand which one will work best for you as an individual or couple. Depending on your situation, it could be that both are needed at once – having both life insurance and income protection can really help in certain situations such as if a person becomes sick or injured at home caring for a child or elderly relative.
What are living benefits?
Living benefits are what insurance companies like to call death benefits; however, unlike death benefits, living benefits don’t kick in if you’re dead. Rather, living benefits cover you for a number of years if something happens to you. In other words, life insurance provides coverage for your family if something happens to you that prevents them from getting by financially. Life insurance is sometimes referred to as permanent life insurance because it lasts as long as your dependents rely on it for their financial security.
What can I do now to get the right cover at the right price?
Life Insurance: Life insurance can help provide financial assistance to your family if something were to happen to you. Life Insurance, however, doesn’t just come in one type. There are different types of life cover depending on your needs which means it is important that you find out what cover will suit your current situation best. Two types of life cover that may be a good idea for everyone are term life or permanent life. Term Life: If you have dependents or large debts at present then term life may be better as it is a cheaper option than permanent life.
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