Read about the 5 main life events that could trigger the need for Life insurance.
While we generally grow up anticipating a long and productive life, things happen in every home and family that makes us reassess.
Life-changing events come in many shapes and forms – from marriage and new babies to unexpected illness, accident and trauma.
Different types of Life insurance and Income Protection covers can help provide financial coverage and security in the event of death, severe illness or injury.
Here are five significant life events which can trigger the need for Life or Income Protection insurance, often resulting in someone taking out a new policy.
- Marriage or divorce
When you marry, you take on shared financial obligations.
ASIC recommends that newly married couples take out adequate Life insurance, as well as getting your will and superannuation in order.
Later in life, if divorce occurs, you may be left with a depleted income. Life insurance is an effective way of protecting your dependents against an uncertain future in the event of your death.
- Buying a house
When buying a house, accessing your first home loan or increasing your mortgage, you can’t afford to leave yourself unprotected.
Who will pay the mortgage if something happens to you or your spouse? Can your family cover funeral expenses as well as making up for the sudden loss of income? This is often a time to reassess your Life insurance needs.
- Having a child
When you start or grow your family, you should ensure you have adequate Life insurance in place. You may have Life insurance in your super, but is it enough to cover the additional cost of bringing up a family if you’re not there?
Income Protection can also be an important addition to your financial cover, providing a continued income stream in the event of a life-changing accident or illness.
Having a child is a popular trigger to take out Life insurance.
- Emergency experienced by close friend or family member
When illness strikes a dear friend or loved one, it’s both a shock and a time to reassess your own financial protection. Common chronic diseases such as diabetes, asthma and heart disease are the leading causes of death and disability in Australia – creating a high burden for families and carers.
- Your own illness or trauma
Your own illness or incapacitating trauma can also trigger the need for cover. No one wants to think about the possibility of developing a serious illness, dying or becoming totally and permanently disabled, but it can happen.
For example, AIHW research shows a significant increase in anticipated cancer deaths in Australia between 2014 and 2025, with 31,555 deaths expected among males (up from an estimated 25,643) and 24,159 deaths expected for females (up from an estimated 19,644).
Obtaining Life insurance
The Australian Securities & Investment Commission (ASIC) recommends reviewing your level of Life insurance cover whenever you experience a change in income levels or life stage.
With discounts for higher levels of cover, quality insurers like NobleOak can help you access the right type and amount of Life insurance to cover most eventualities.
It’s easy to use the NobleOak’s Life insurance calculator to determine the optimum level of cover you need in the event of your death or disablement.
You buy peace of mind along with financial coverage when you take out a Life insurance policy with NobleOak, the Strategic Insight 2016 Overall Excellence Award winners.
Please note that the information we provide is not advice but general information only.
Sources:
Australian Securities & Investment Commission (ASIC), Getting Married, viewed 15 December 2016
