A real plus for you and your family
Understanding the importance of insurance and why it plays a vital role in your financial security will help provide financial security for you and your family when you need it most.
Protect your greatest asset – you!
You get your car and your house. So, it makes perfect sense to tap into your greatest asset: you!
As we move forward in life, find a spouse, start a family, and perhaps start a business, the importance of insurance increases in the long run. This is because insurance is a financial safety net that will help you take care of yourself and your loved ones when you need it most.
5 Reasons Why Insurance Matters
Why is insurance important? We look at five key points.
1. Safety for you and your family
Your family depends on your financial support to have a good standard of living, so insurance is especially important when starting a family. This means that the most important people in your life can be protected from financial harm in the event of an unlikely accident.
2. Reduce stress during difficult times
None of us know who is next to him. Unexpected events, such as illness, injury or permanent disability, including death, can cause emotional distress and distress. By finding a place, you or your family can minimize financial stress and focus on restoring and rebuilding your life.
3. Enjoy Financial Security
Regardless of your current financial situation, the unexpected can see everything unravel very quickly. Insurance covers money, so if an emergency happens, you and your family can’t wait to move.
4. Peace of mind
There is no substitute for your health and well-being, or your role in your family. But at least you have the peace of mind of knowing that if anything happens to you, your family’s financial security will help you.
5. Leave a legacy
The death benefit can secure your child’s future and protect their standard of living.
The following scenarios only illustrate the importance of insurance and are not based on actual facts.
Tony, 34, and Karen, 33, renovated their new home to give their twin sons Nicholas and Rocky four more bedrooms. It also meant taking on more secured debt because Karen was a homemaker. To protect his family, Tony decides to offer protection.
During a cricket match on a Saturday afternoon in the backyard with the twins, Tony fell and broke his leg. It seems the holiday was harder than expected, with Tony requiring several rehabilitation surgeries followed by physical therapy.
This meant that Tony had been unemployed for over six months, and despite his employer being famous, Tony only had two weeks to himself.
Fortunately, Tony’s insurance meant he earned 80% of his regular salary (inclusive). The couple had to tighten their belts until Tony was able to get back on his feet, but they were able to pay the mortgage, which otherwise would not have been possible without this money.
Whole Life Insurance
Death and illness coverage, known as life insurance, can help secure your family’s future once you’re gone.
How Employment Insurance Works
Longevity insurance works through death rates or long-term diagnoses.
Paying means that your family will be supported financially when you are no longer here. It also means your loved ones can focus on supporting each other in times of need, rather than worrying about how they’ll pay bills and manage other expenses.
Do you need protection?
None of us wants to think about our death, but none of us know what the future holds. According to a study by Lifight and Natsem *, 1 in 5 families suffer the death of a parent, an accident, or an incapacitating illness. Sadly, 8 Australian families lose a working parent every day.
It shouldn’t be risky without your family. Talk to your financial advisor to make sure you and your loved ones are safe.
* Source: Inadequate report on life insurance / Natsem – Awareness of the cost of social and economic insurance through insurance, February 2010.
How much coverage should you have?
It’s important to have the right level of life insurance.
The starting point for assessing the right level of coverage for you is to cover all of your current debts, including home equity loans. Think about how much your family needs to maintain their current and future lifestyle based on your wealth.
Duty to Consumers
Life insurance helps ensure that your family can carry on in the way you planned, even after you’re gone. It’s important to include clients in your policy so you can ensure that the benefits reach those who matter most to you.
People often name employers they trust financially, such as a spouse or colleague (personal or business) or children. There are laws about who you can name as insurance beneficiaries with your large sum of money. In the case of hedges held outside the actual retention, the specified user is usually a person, corporation, or trust. If you decide to offer multiple users, you must specify the percentage of benefits each person receives.
