Whilst the majority of people wouldn’t think twice about insuring their home or car, personal risk protection is often perceived as expensive and unnecessary. In the current economic climate many Australians are hesitant to invest in life insurance.
However, a large number admit they would encounter difficulties should the major breadwinner of the household suffer an unexpected injury, illness or death and be unable to provide for family members for a span of longer than three months.
If you are the major breadwinner, you should seriously consider investing in life insurance if there are those dependant on you financially who would struggle to cope if you were unexpectedly unable to work (i.e. if you do not have a large store of funds saved). In this event life insurance would provide financial stability for your spouse and family in the absence of your primary source of income and ensure they are not left unable to fulfill such financial commitments as bills and mortgage repayments. It would also ensure your children had access to funds to help them pay educational expenses such as university tuition fees.
The average cost for a funeral service is in the region of $4000-$6000, an amount can be crippling for households left in a less than financially secure position. Life insurance would ensure that in the event that you were to suddenly pass away, all funeral expenses would be taken care of, easing the burden for those left behind.
The practical uses of life insurance also extend further than providing a death benefit to surviving family members. Coverage can also apply for instance if another family member suffers an injury and must be taken care of, if a child is born or if the insured must care for an elderly parent or family member.
In short, life insurance is valuable simply for the peace of mind it grants – the knowledge that if something were unexpectedly to happen to you your family would not be left in financial hardship without means of providing for themselves.
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