Do I Need Life Insurance? Explore It’s Benefits

If you’ve found yourself asking ‘do I need life insurance?’, this article will provide useful information so you can decide whether it’s right for you. We’ll also explore some of the additional life insurance benefits that NobleOak provides – such as professional financial advice and grief counselling for your family or dependants.

Why do people take out life insurance products?

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

The benefits of life insurance

Given that insurance comes with monthly premiums, it’s reasonable to wonder: is it worth it to get life insurance? Here, we’ll highlight some of the advantages of NobleOak’s award-winning Life Insurance, to help you make your mind up.

Financial advice benefit:

Most of us are not used to receiving large lump-sum payments such as you or your beneficiaries may receive in the event of a life cover, TPD or trauma (recovery) claim. Such payments require careful management to provide for you and your family’s immediate and future needs. Financial planning can be even harder to come to grips with during a distressing time of shock or bereavement.

At NobleOak we understand that you or your estate may need some professional assistance to ensure that the proceeds of a life cover, TPD insurance, or trauma (recovery) insurance claim payment are managed appropriately.

If NobleOak pays a benefit of more than $200,000 for one of these claims, we will reimburse the cost, up to $5,000, of engaging a qualified, licensed financial adviser to help you prepare a financial plan for managing the payment. This is a key benefit of NobleOak Life Insurance.

A Financial advice benefit is only payable once in respect of the life insured. Evidence that the advice has been received and paid for must be provided to NobleOak within 6 months of the life, trauma or TPD benefit payment. Please note that because of superannuation laws, we are typically unable to offer this benefit where the cover is held by an SMSF.

Grief counselling benefit

At NobleOak we understand that your death or diagnosis with a terminal illness can be a very emotional time for you and/or your partner. That is why we will reimburse the cost of counselling services in addition to your NobleOak Life Insurance benefit.

If we pay a benefit for death or terminal illness, we will reimburse the cost of grief counselling for you or your spouse or partner, up to the value of $1,000. The grief counselling benefit is only payable once in respect of the life insured.

The service provider you choose must be appropriately qualified and registered for grief counselling and you will need to provide evidence of the services and receipts for payments made. Such evidence must be received within 12 months of the death/terminal illness benefit payment. Please note that because of superannuation laws, we are typically unable to offer this benefit where the cover is held by an SMSF.

Is life insurance necessary in Australia?

If you’re wondering ‘do I need life insurance?’, Australia doesn’t have any laws that make it legally necessary. However, life insurance is worth considering in several situations, including those outlined below:

• You have a spouse (or de facto partner) and you’re concerned about how they would cope financially without your support
• You have young children; and/or
• You’re a business owner and you want to pass down a financial legacy.

For those who have accumulated a substantial amount of wealth, Life Insurance may not be necessary. If you’d like to chat to one of our experts about your situation, please feel free to call us on 1300 041 494.

Is it okay to not have life insurance?

The decision to get life insurance is up to you – it will largely depend on your own personal circumstances. The main factor to consider is whether your loved ones would face financial burdens if you could not support them anymore. Take a moment to think about how your dependents would be affected if something unexpected happened to you: would they have to face mortgage repayments, or even the loss of their home?

If your family doesn’t have any alternative forms of financial security, life insurance can be a good way to keep them protected from hardship. Our article about what can happen to your home if you die before paying off your mortgage has some additional information for anyone considering this form of insurance.

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 dependants: If you have a spouse, children, or other dependants who rely on your income to cover their living expenses, it may be 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 dependants, 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.

Do you need life insurance? Our team can provide you with more information so you can decide on the best option for you.

Our insurance calculator and quote tool can help you figure out how much it might cost to get the coverage you need. You can also call us on 1300 041 494 to discuss your options.

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. Please also consider NobleOak Life Limited’s Financial Services Guide. NobleOak Life Limited ABN 85 087 648 708 AFSL 247302.