With the Christmas holiday drawing closer, it's the perfect opportunity to think about what your family means to you.
For many Australians, the silly season is a time to give and receive gifts, gather together and enjoy the company of loved ones over the much needed end of year break. Family is important, and there's no time when this is clearer than over the Christmas period.
While it may not be as exciting as a trip to Disneyland or a new TV, prudent financial planning can prove to be one of the best gifts you give to your family this Christmas.
The costs of raising a family
As the breadwinners of the household, parents know that the costs of raising a family in Australia can be expensive - and these expenses are growing larger as the years go by.
The latest AMP.NATSEM Income and Wealth Report calculated the lifetime shopping bill incurred for raising two children from birth until the end of their education. According to the results, this bill came to $812,043 in 2011-12 for a middle income family and $1,097,278 for a high income family.
Additionally, the report found the costs of raising children had "increased considerably", with education and food expenses in particular seeing steady growth since the year 2000.
Many parents work hard to provide for their loved ones now, to ensure they have a variety of choices in life. However, have you thought about how your family will be able to afford their lifestyle after you have passed?
The impact of losing a parent can be devastating, not just emotionally but financially as well. For many people, life insurance can give peace of mind that the family will continue to be cared for even after they have gone.
When you insure yourself, you are setting in place a policy that will continue to provide for your family even after you have passed away.
In the event of your death, your nominated beneficiaries will receive a lump sum benefit that can be used as they see fit. You can choose who will have the responsibility of receiving the benefit, whether it's family members, close relatives or other loved ones.
For many people, knowing that their family will have this support can create a comforting sense of security. There are many options when it comes to choosing and tailoring a policy for you, such as adding cover for total and permanent disability (TPD) and serious illness cover.
A life insurance comparison can help you select the most suitable policy for your needs, whether it's just life cover, or a combination of trauma and TPD.
This is general information and does not take account of your financial situation.
- AMP NATSEM Income and Wealth Report
These articles are provided as reference material to allow more informed decision making, but are not intended as being a complete source of information on any topic. All readers should make their own independent analysis on the topic to make sure they have considered the aspects that are important to them.