What exactly is Life Insurance?
Life insurance, also commonly known as Death Cover, pays a lump sum of money when you die. The money goes to the people you nominate as beneficiaries on the policy.
Life insurance may also come with Terminal Illness Cover. This pays a lump sum if you're diagnosed with a terminal illness with a limited life expectancy.
As a psychologist you'll be well aware of the fact that people do their best to avoid thinking about their own death and what might happen to their loved ones. Be honest, do you have Life Insurance? Having insurance in place can bring peace of mind.
How much cover do I need?
You can choose the level of cover you want. However, when deciding how much cover is right for you, make sure you take these factors into consideration to ensure your family continues to enjoy the same standard of living as before:
Savings – How long could your family last on your savings?
Superannuation Fund – How much will your family receive from your super fund if you die?
Debt - Do you have a mortgage or other debts to pay off?
Funeral expenses – Do you have enough money to cover your funeral expenses?
Children’s education – If your children are in private schools, do you want them to continue in the private system?
Everyday living expenses – Could your partner cope financially without you generating income?
Generally, a Life Insurance policy provides coverage until you reach the age of 99 or until the claim is made. The older you get, the higher the premium will be.
Where can I get Life Insurance
Life insurance can be purchased from Financial Planner.