Few things in life sound less enticing than researching life insurance, yet the burden it can lift from our shoulders might be heavier than we realise. Protecting our loved ones in the event of a nightmare diagnosis, fatal accident, or sudden, unexpected death is the responsible thing to do and has never been easier. However, as we will see in this article, alternative reasons exist for considering life insurance in Australia, even without dependents.
Who should consider life insurance in Australia?
When viewed as a financial tool that allows us to provide a significant safety net for those we love, life insurance in Australia seems less like a burden and more like an astute decision. While all individuals can consider it, there are some for whom neglecting the issue should be non-negotiable, namely:
- Primary wage earners
When one household member provides a sizeable percentage of its total income, losing that financial input with no life insurance policy in place can be devastating and life-changing. A decent life insurance policy allows the remaining members to maintain their living standards and keep up payments on extended debts like mortgages.
- Guardians with financial dependents
Whether blood-related or not, any individuals who are legally responsible for children require finance of some description. If the children are older and independent financially, life insurance in Australia may also cover standing financial agreements like co-signed loans, says this source.
- Non-working spouses and parents
If a family unit loses a stay-at-home partner rather than a breadwinner, somebody else must now handle any roles they were responsible for performing. This may sometimes mean paying for outside help, and a good life insurance policy can more than cover those costs.
- Business owners
Although more prominent, established businesses may be relatively well-equipped to handle the loss of an owner, smaller businesses are much less likely to fare well. Small business owners tend to perform myriad tasks within the company and may have knowledge and expertise vital to its ongoing success. Life insurance can provide the means for the business to remain relatively unscathed. Be sure to check with your insurance provider, as coverage and potential exclusions may differ from standard policies and require special attention.
- Selfless individuals who cover final expenses and donate to charity
Funeral costs are not insignificant, and some people take out life insurance in Australia to ensure those costs are not passed on to anyone else, says Forbes. They may also have conditions that allow them to donate money to certain charity foundations and other good causes. The charity can either be named as a beneficiary, receive ownership of the policy, or use a ‘charitable giving rider’ process where an agreed percentage of the policy’s face value is donated.
Final thoughts about life insurance in Australia
Taking the time and effort to acquire life insurance in Australia is one of the most effective ways to protect our loved ones if something unthinkable happens to us. The financial security it provides is unrivalled and allows families to maintain their standard of living if the worst happens. The person taking out the policy gets to know they have done everything possible to protect the people they love; it is priceless in itself.
