Why life insurance is important at every stage of life

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 Why life insurance is important at every stage of life

Life is what happens to you while you’re making plans! That’s why it’s important to check your financial safety nets regularly to ensure they’re ready to look after everything that’s important to you should you need them. This includes life insurance, and if you think you’re too young, too old, (and every other reason in between) to have life insurance, you’ll want to familiarise yourself with how this form of financial security can help you at every stage in life.

Young & single = financial independence

You’re young and single – the world is your oyster! But life throws its curveballs when you least expect them, and that includes when you’re young and single, and yet to cast a financial safety net.

Despite not having kids or a partner relying on your income, you may have a student loan to pay off, credit card debt, a car loan or mortgage – all of which could cause financial strain on you and your family should you suffer a terminal illness or pass away.

Life insurance at this stage can help:

  • Maintain your independence if you suffer a serious illness or disability.
  • Gain peace of mind if you’re diagnosed with a terminal illness. Your life insurance benefit will help you spend precious time with your loved ones without financial stress.
  • Provide financial relief for parents or siblings, if you own property with someone else. A life insurance payout will help them meet the expenses you have jointly committed to if you pass away or suffer injury or illness you’re insured for.
  • Save on premiums. The younger and healthier you are, the cheaper your premiums will be. This means you may be able to cover yourself for a higher amount than those who are older. You may also be eligible for a wider range of cover options and extras.

Learn more about life insurance for singles.

Young couples = future building

Australian couples are spending on average just over $31,300 on their weddings1 – often making this their first step to building a future together. Add this to the debt when buying your first home, and you’re on your way to kicking long-term financial goals as a couple. But what happens if you or your partner unexpectedly passes away? This is where life insurance for young couples can help.

Australia has the second highest level of household debt in the world, with a debt-to-income ratio of 190 per cent.2
young couple sharing a private joke

Life insurance at this stage can help:

  • Manage debt on a single income with your life insurance benefit – avoiding years of financial hardship or the need to sell assets.
  • Protect your family financially with a benefit amount up to $1.5 million (depending on your policy or age), which is paid as a lump sum to your loved ones if you pass away or are diagnosed with a terminal illness.
  • Choose separate policies or cover both of you on the one policy if you’re a de facto couple or married.
  • Cover future costs your partner may face such as paying mortgage or rent, credit card debt, property maintenance, and higher education debt.
  • Save on premium rates, which are often significantly cheaper for young adults compared to older adults.

Learn more about life insurance for young couples.

Young families = protecting your new family

A life insurance lump sum payment can help keep the dreams you have for your young family alive if you were to suffer a terminal illness or pass away. Education, travel, and a comfortable lifestyle can still be theirs even if you’re not there to experience it.

9 in 10 Australian parents (91.3%) agree life insurance cover can ease the burden of a worried mind.3

Life insurance at this stage can help:

  • Cover the future costs your young family may face without you. For example, mortgage or rent, credit card debt, investment property debt, household bills, childcare, and education expenses.
  • Cover your child for Accidental Death, or specific injury or serious illness with optional Children’s Insurance cover.
  • Be eligible for a wider range of cover options and cheaper premiums, whereas the older you get, the harder certain options may be to obtain.

Learn more about life insurance for young families.

Maturing families = securing your lifestyle

You’ve been working hard to build a lifestyle for your growing family. You may even be getting on top of your financial commitments, finding a little extra to boost your kids’ savings as they get ahead on their education expenses. You may even have kids that have moved back in with their partners, trying to save for their first home. Half of Australians aged between 18–24 haven’t left home4 yet, so the last thing you want to do is to disrupt the security your partner and kids have come to rely on.

On any given day, four in five parents (80.4%) spend valuable time worrying about protecting their family.3
parents with teenage kids taking funny family photo

Life insurance at this stage can help:

  • Cover your child for Accidental Death, or specific injury or serious illness with optional Children’s Insurance cover.
  • Insure against serious illnesses and injuries such as Malignant Cancers, Stroke, Heart Attack or Coronary Artery Bypass Surgery depending on your policy.
  • Ensure if something was to happen to you, outstanding debts, the mortgage, and everyday household bills are covered.
  • Provide quality time to spend with your family, minus any financial stress from medical expenses if you’re diagnosed with a terminal illness.

Learn more about life insurance for maturing families.

Empty nesters: keeping your goals on track

You have enough experience in the game of life to know things don’t always go according to plan, that’s why you’re setting up for a stress-free retirement. When the kids have left to make their own way in the world, you’re focus is on building your savings and super by working hard before retirement. Life insurance can help you stay on track with your retirement goals , if any serious financial setbacks pop up during these earning years.

Australians aged between 65–80 owed an average $158,500 on their mortgage in 2015.5

Life insurance at this stage can help:

  • Cover future costs for your partner such as clearing the mortgage, replacing old motor vehicles, paying aged care costs, and contributing to the kids’ weddings if you pass away or are diagnosed with a terminal illness.
  • Help keep your partner’s retirement, savings and super goals afloat if your income was to suddenly cease.
  • Make sure your family can pay any debts you leave behind such as credit card debt, medical bills, property maintenance and more.

Learn more about life insurance for empty nesters.

Not only is death and illness an emotional rollercoaster for any family, it’s a financial one too. One way you can protect those that matter most from this strain is with life insurance. In the event of death or illness, your beneficiaries could receive a benefit, which could help them stay afloat no matter what their stage of life.

Find out more about your life insurance options at Choosi, and compare quotes to find the right policy and price for you.

References

  1. How much does a wedding cost?Easy Weddings
    https://www.easyweddings.com.au/articles/wedding-cost/
  2. Issuing new loans against unrealised capital gains has created an Australian ‘house of cards’news.com.au
    http://www.news.com.au/finance/economy/australian-economy/issuing-new-loans-against-unrealised-capital-gains-has-created-an-australian-house-of-cards/news-story/853e540ce0a8ed95d5881a730b6ed2c9
  3. Family Protection SurveyReal Insurance News & Views
    https://www.realinsurance.com.au/news-views/family-protection-survey
  4. More than half of Aussies aged 18–24 still live at home: ABS SBS News
    https://www.sbs.com.au/news/more-than-half-of-aussies-aged-18-24-still-live-at-home-abs
  5. Australians are entering twilight years with $150,000 of mortgage debt: ING Direct domain.com.au
    https://www.domain.com.au/news/australians-are-entering-twilight-years-with-150000-of-mortgage-debt-ing-direct-20160607-gpdhip/

Posted: 10 Apr 2018

This is general information only and does not take into account your personal objectives, financial situation or needs. You should consider the relevant PDS available on this website prior to purchasing any product. Choosi offers insurance products from a range of brands but does not compare all products available in the market.

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