Why might you need life insurance?

Firstly, what is term life insurance?

Term life insurance provides coverage for a specific period (term) and pays out a death benefit if the insured person passes away during that term. With NobleOak Life Insurance, you can maintain your cover up until the age of 99.

Why do people take out life insurance?

In NobleOak’s recent Life Insurance Pulse Report* conducted with over 1,000 Australians, it was found that the main reason people hold life insurance products is to provide financial security, especially for families. In addition, 30% of empty nesters said they purchased life insurance products to protect their home or pay off the mortgage. 21% of singles said that they have or are planning to take out life insurance products to maintain their lifestyle.

So when should you buy life insurance?

The most suitable age or life stage to buy life insurance can vary depending on your individual objectives, financial situation and needs. However, there are some general guidelines that may help you determine when it might be a good time to purchase life insurance:

When you’re young and healthy: Life insurance premiums are typically lower when you are young and in good health. Buying a policy early may result in lower rates for the duration of the policy, as you won’t be assessed again for later health issues.

When you have dependents: If you have a spouse, children, or other dependents who rely on your income to cover their living expenses, it is a good idea to consider life insurance. This can help provide financial support for your loved ones in case of your untimely death.

When you have debt: If you have significant debts, such as a mortgage, student loans, or credit card debt, life insurance can help cover those debts, so they do not become a burden on your family if you pass away.

When you want to leave a legacy: If you want to leave an inheritance or financial legacy to your loved ones or a charity, life insurance can help ensure that your beneficiaries receive a payout upon your death. This payout may also be tax free, but you should check with your accountant.

When you want to cover final expenses: Even if you do not have dependents, life insurance can help cover your funeral and burial expenses, assisting your family with this financial burden.

It is important to assess your specific objectives, financial situation, goals, and responsibilities to determine the best time to buy life insurance. Your life insurance needs can also change over time, so it is a good practice to periodically review and adjust your coverage as your circumstances evolve.

*Research conducted on behalf of NobleOak by The Market Intelligence Co, December 2023 with over 1,000 Australian citizens or residents.

Important information:

Any financial product advice is general in nature only and does not take into account your individual circumstances, objectives, financial situation, or needs. Before acting on it, please consider the appropriateness of the information, having regard to those factors. Any third-party websites or tools referred to are subject to their own terms and conditions and NobleOak Life Limited makes no representation or warranty as to any information on those websites. Persons deciding whether to acquire or continue to hold life insurance issued by NobleOak Life Limited should consider the relevant Product Disclosure Statement, and Target Market Determination for the product.

NobleOak Life Limited ABN 85 087 648 708 AFSL 247302.