The need for life insurance in Australia (or anywhere in the world) is not a lifetime need. In fact, having insurance coverage for your family is only necessary during times when your family is dependent on your income, or when you want to make this type of insurance part of your estate plan. In other cases, you may only need funeral insurance to cover expenses at your time of death. As you consider your financial needs for life insurance products, remember that timing does play a role in the effectiveness of the plan, and there are many things to consider before you actually buy a policy.
A good place to start is during the earning years. From your 20s to your 60s, many men and women work and have families. During that time, you often have the largest demand for income. You have a family to care for, but you also often have the highest amount of debt. You may have a mortgage payment, a car payment and many other costs. During this time, you may face the most extensive demand on your finances because you have not had the time to build up a financial fund to pay for your needs.
Because of the demands of these early years, this is the time when you need the most protection from life insurance. Australia and the rest of the world needs this type of policy to provide family members with a payout to cover all of those costs if you happen to die. These policies can help you to ensure that if something happens to you that your family has the money to keep paying off mortgages and other financial obligations.
At this age you also get a cheap life cover as well. You just have to be smart about deciding what insurance is best for you. You can compare average life insurance payout and after a discussion with your life planner you can decide what’s best for you.
You could be at a different point in life, though. For example, you could have more money in the bank because you have put funds away for retirement. You may not even be working and your children are grown up and no longer rely on your income. You could have even paid off your mortgage and car payments. In this case, you may not need a full life policy.
You may still want to cover the costs of your death to ensure that your family had immediate availability to money. Whether it’s to pay for your funeral expenses or other unexpected costs, having a funeral insurance policy is the route to go. This policy will cover the costs of your memorial service, all of your burial needs, but can also cover out any expenses you family may have during those initial months after your death when your life insurance money may be tied up in estate courts.
It may be a bit clearer now as to when you need to turn to a life plan and when a funeral insurance plan is the better option for you. Use a life insurance plan in Australia or wherever you may be in the world as a way to provide long term protection to your heirs. You may face some limitations due to your age, but keep all of your options open as you work through the quotes and policies that are available.
Cameron Rochelle, “Life Insurance, Funeral Insurance or Both for Financial Protection,” Associated Content by Yahoo!
Life Insurance, Funeral Insurance or Both for Financial Protection.