Life insurance is part of many Wealth Plans we put together, unless you’re fortunate enough to be self‑insured. For many people, the first time life insurance is raised for consideration is when they take out a mortgage. Often, they are advised that the debt needs something to counterbalance it should an unforeseen event occur.
The reality is that life insurance can be valuable at various life stages, whether you’re young and single, starting a family, or transitioning to retirement.
What Is Life Insurance?
Life insurance can help provide financial security for you and your family through a lump sum payment if you are diagnosed with a terminal illness or pass away. It can also give you peace of mind knowing your family will be looked after and have financial protection if you were no longer around.
Life insurance can be beneficial at every stage of life. Some scenarios where life insurance can be valuable are discussed below.
Major Health Concerns Among Australians
Cancer is one of the biggest health concerns for Australians. According to the Cancer Council, at current rates, one in two Australians are expected to be diagnosed with cancer by the age of 85. The high prevalence of the disease should give you pause for thought about protecting your family in case the unexpected happens.
However, it’s not only those with health concerns who should consider life insurance. Even if you’re young, fit, and healthy, starting a family, or planning your post‑retirement life, life insurance may still have benefits for you.
Young and Single
When you’re young, single, and healthy, life insurance is probably the furthest thing from your mind. After all, you’re in the prime of your life and have other expenses to worry about. But life can be unpredictable, and it doesn’t hurt to plan ahead.
If something unforeseen were to happen, would your immediate family be able to cover your existing loans and expenses? You may also be able to secure a more favourable premium by locking in a policy while you’re young and healthy, rather than waiting until you’re older and potentially facing health complications.
Married or Starting a Family
When you get married or start thinking about having children, others begin to rely on your income. This can be a good time to consider life insurance, as it can provide a financial safety net for your dependents if the unthinkable happens. It helps ensure they are not left struggling to keep up with mortgage repayments, childcare costs, or everyday living expenses in your absence.
Transitioning to Retirement
It’s a common misconception that life insurance is only about providing a lump sum payment to loved ones in the event of your death. It can offer much more than that. As you transition to retirement, life insurance can give you the financial freedom to live life on your terms, with confidence that your family will not be under financial stress when it comes to paying bills or even funeral expenses.
Get Professional Help
If you’d like to discuss which life insurance options may be right for your needs and how they could complement your Wealth Plan, please reach out. I’d be happy to have a chat.
Important Notice
The information contained in this article is general in nature only and does not take into account your personal objectives, financial situation or needs. You should consider whether the information is appropriate for your circumstances before acting on it and seek advice from a qualified professional.
Personal financial advice can only be provided after considering your individual circumstances and providing the appropriate disclosure documentation. VJC Wealth accepts no liability to any party for any loss arising from reliance on this information unless it has been provided as part of a formal advice engagement.
