If your children, partner or other relatives depend on your income to cover the mortgage or other living expenses, then the answer is yes – you probably do want life insurance, since it will help provide for your family in the event of your death.
Life insurance can pay your dependants money as a lump sum or as regular payments if you die.
Life insurance only covers death – if you can’t provide for your family because of illness or disability, you won’t be covered.
If you have a serious health problem when you take out the policy, your insurance may exclude any cause of death related to that illness.
If you have dependants – such as school age children, a partner who relies on your income or a family living in a house with a mortgage that you pay – a life insurance policy can provide for them if you die.
If you want to provide for your family financially if you die, life insurance is a must.
If you are single, or if your partner earns enough for your family to live on, you may not need life insurance.
The price you pay for a life insurance policy depends on a number of things:
the amount of money you want to cover,
your lifestyle, and
whether you smoke.
Life insurance covers the worst-case scenario, but it’s also important to consider how you might pay your bills or your mortgage if you couldn’t work because of illness or injury.
There are other types of insurances available such as income protection insurance This type of insurance provides regular payments if you are unable to work due to illness or injury.
There is also critical illness / trauma insurance. This type of policy will provide you with a ‘lump sum’ if you’re diagnosed with a serious illness covered by your policy.
There is a plethora of life insurance products out there in the market. Speak to your Financial Planner today – they can help you find the best product for you.