Life Insurance

The 5 Reasons to Consider Taking Out a Life Insurance Policy NOW!

Life Insurance by Life Stage

The choices you make today can impact your long-term health, wealth and happiness. Understand the important role Life Insurance can play in key life events.

Life insurance can help with a safe and stable future. For the many Australians who are still underinsured, here’s why it’s better to be safe than sorry.

It’s human nature to think of worst-case scenarios.

How are you going to pay your bills if an illness or injury stops you from going to work? And what’s going to happen to your family if you were no longer around ?

These crucial questions probably go through everyone’s mind now and then. However, many people don’t do enough to address them.

At least, that’s what the numbers say.

According to, a staggering 95% don’t have a suitable life insurance policy. Even worse, some don’t have a life insurance policy at all.

The problem gets even more severe when you consider the rest of the statistics.

It’s believed that one in Australian families will hit a tragic health event that prevents them from working. And it gets even more distressing – half of them wouldn’t last 3 months without income.

Most people aren’t aware of the seriousness of the situation. It’s not going to happen to you, right?

This article hopes to help you understand why it can be essential to have an adequate life insurance policy.

#1 – Major Life Changes

Before you make a big life decision, you should think about getting life insurance first.

Imagine that you’ve decided to get married and start a family. With that, you immediately need to think about the future of your dependents.

You might also have a new mortgage to pay off and tertiary education to budget for. Moreover, you’ll want to maintain your lifestyle while you’re at it.

Think about what’s going to happen if suddenly you’re unable to do so.

One unfortunate event can pull your entire family into despair.

Fortunately, an adequate life insurance policy could well cushion the blow of this happening.

Should something happen to you, with the right cover your life insurance will kick in and help provide your loved ones with much-needed stability. It’ll at least help give everyone a chance to reorganize and rebuild.

#2 – Debts

You know how they say, Death is a debt we all must pay. But unfortunately, this doesn’t mean that the rest of your debt will disappear.

Throughout life, a typical Australian tends to pile up various debts: mortgage, credit card, car loans… And even if you’re not around anymore to pay them, the responsibility might fall on your spouse or other family members.

So, what happens if they can’t afford to pay the inherited debts?

Depending on your financial situation, you risk the possibility of depriving your family of the roof over their head and the ability to maintain the lifestyle they currently enjoy.

On top of the stress and trauma of losing a family member, they might also have to struggle to make ends meet… But not if you have the right life insurance cover.

It can help to bring peace of mind for the future so that you can better enjoy the present.

#3 – Burial Expenses

When people are healthy, they don’t dwell too much on death and its consequences. But that’s exactly how a tragic event ends up putting the burial expenses on the dependents’ shoulders.

The cost of the funeral ceremony and wake can easily run into the thousands. If it happens unexpectedly, your family would likely have to deal with these expenses.

While it’s possible to prepay for funerals nowadays, this may be a precarious decision. For example, the funeral company  in question may have gone out of business when the funds are required.

What you can do is to structure your life insurance policy to pay out a lump sum for your loved ones when the time comes.

It’s going to make it easier for them if they know that you already took care of these things in your lifetime.

#4 – Mourning Period

Losing a loved one is one of the most traumatic events in life. And it can take a lot of time bereave.

With your life insurance policy, you can give your family some time to get over their loss without worrying about finances. The fact is, if your death was to cause immediate financial concern, things would most likely be a lot worse for them.

The stress could pile up, and it’d be harder and harder for everyone to cope.

But you can easily prevent this. A good life insurance policy can give them that important window with which to mourn by taking care of the financial side of things, even if just for a certain period.

This means that your death wouldn’t be as likely to severely impact the lifestyle that they’re used to until they get back on their feet.

The mourning period would make it easier for them to get on with their life. And of course, they’d be thankful that you’d thought of things beforehand.

#5 – It’s not as expensive as you may think!

Some people turn their heads away from life insurance, mostly for the mistaken belief that it’s too expensive. The costs, which they thought to be significant, can go towards something else.

It’s also morbid to think about one’s death.  That’s why people may not consider even getting a quote.

However, term life insurance doesn’t have a pre-determined fixed price across all policies. Your premium might be less or more expensive than others, based on a range of factors, including the amount of cover you have, whether you smoke, your age, health status and lifestyle.

If you’re relatively young and healthy and act right away, you might be pleasantly surprised by the premium.  For instance $500,000 of life insurance cover should cost a healthy female (white collar non-smoker) around $18-23 per month and a male around $23/30 per month.

Once you hold the right policy, you will find that the only increases are based on you getting older each year, and whether you have selected to ‘index’ your policy, to guard against .

Insurance – Important and Affordable

Before you make excuses, you should know one thing. You’re not doing yourself a favour with a life insurance policy. Rather, you’re helping to protect your loved ones.

With a good policy, you have one less reason to worry about the future of your family. The worst-case scenario is not going to be as difficult if your family has your life insurance proceeds to fall back on.

In short, getting life insurance is often about putting their future first.

If you’re not sure about the price, don’t ask the people around you. The premium depends on your individual circumstances.

Get a quote with the award-winning life insurance provider NobleOak. Reach out as soon as you can and start planning for the future.

Resources:

https://www.finder.com.au/underinsurance-in-australia
https://smartasset.com/life-insurance/top-ten-reasons-to-buy-life-insurance
https://www.moneycrashers.com/reasons-buy-life-insurance/
https://www.canstar.com.au/life-insurance/when-should-you-buy-life-insurance/

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