Why You Need Life Insurance
While most Australians insure their cars, homes and other assets, many forget to protect their most important asset – themselves and their ability to earn an income. Life insurance is a way to protect you and your loved ones from financial burden should something happen to you.
Here are some questions you should ask yourself when considering if you should get life insurance:
Is your family financially prepared if you or your partner become disabled and are unable to work? Even if one of you misses a month or two of work, do you have money saved up? If not, that can really hurt your finances.
Is your income needed to help someone else? Do you have money set aside to pay for your children’s care and education? Are you financially supporting or taking care of a family member?
Are you trying to pay off debts? If you are struggling with debt, you shouldn’t simply hope that nothing happens that will impact on your income. Unfortunately, things do happen and you don’t want to get yourself into more financial difficulty.
Are you willing to rely on others to help with your lost income? If you are young, are you willing to move back in with your parents? If you are older, would you sell your home to help you through a rough patch?
You may have been given the choice to get life insurance with your super. Or, you may have some automatically included with your super.
What life insurance is available through my super fund?
Most super funds offer two types of life insurance:
- Death insurance – pays a lump sum amount on your death or the diagnosis of a terminal illness.
- Total and permanent disability (TPD) insurance – pays a lump sum if you become totally and permanently disabled and are unlikely to ever work again.
Most super funds also offer income protection insurance, which provides up to 85% (including 10% contribution to super) of your income as a regular payment if you are unable to work due to illness or injury.
Most people believe that nothing bad will ever happen to them. In the unfortunate event that it does – are you able to financially support your family without an income, or will your family be left in financial difficulty if you die? Visit the Nationwide Super website to find out more about the different types of insurance we have to offer.