When it comes to protecting what we cherish more than anything else: the ones we love, our independence and our ability to earn an income, for some reason we pop it into the ‘too hard’ basket. It won’t happen to me. I don’t need it. I’ll just sell my house. She’ll be right.
But before you dismiss the idea of life insurance, have a quick read below to get the basics of it. You might be surprised what you learn.
Life insurance is a lot like marriage
Once you’ve committed, it promises to be there always. For better, for worse. In sickness, in health. ‘Til death do you part. Interestingly, Australians seem to shy away from this otherwise logical union and as a result, our nation is one of the most underinsured on the planet.
Here’s the anomaly: Australians know what life insurance is. To an extent, we even understand the value that it offers. We certainly aren’t lacking in product choice. And we have a close affinity with other insurances like vehicle, home, contents, health, and even pet insurance.
And the clincher to this anomaly? Life insurance is a financial solution that that actually pays a cash benefit in critical times of need. It’s literally a funding mechanism that promises to protect what we cherish more than anything else: the ones we love, our independence and our ability to earn an income.
Life insurance in Australia is also extremely regulated. The interests of policyholders are paramount; meaning the history of door-to-door salesmen and company collapses (which shed an unfavourable, if not misguided light on the industry’s reputation) is truly a thing of the past.
By virtue of the points above, it’s intriguing that product providers don’t make life insurance a lot easier for us to understand. Rather than educate us, they seem to sprout clichés, and riddle us with complex definitions, paperwork and jargon.
So how do you figure out what’s right for you? Here are a few hints to help you out:
1. Remember it: your dreams & aspirations
Take a moment to think about the things you cherish. Your kids, your family, your partner, your pets. And then ask yourself, what would you do for them? Is your answer ‘anything’?
The fact is, emotion is actually what drives our lives.
- We all have common dreams & aspirations: providing for our family, putting a roof over our heads, going on holiday, eating well, spending time with friends, and eventually retiring in comfort.
- We also all have common fears, obligations & worries: paying the bills, keeping the car running, avoiding any sort of accident, and staying as stress-free & healthy as we can.
So if something was to happen to your family’s ‘breadwinner’ how would your dreams hold up?
- Would there be enough cash to pay for medical expenses, treatments or a funeral?
- Could the mortgage continue to be paid or would the home have to be sold?
- Would welfare be enough long-term?
- Is the future taken care of financially?
Money can’t fix pain, but it could help ease the burden caused by the cruel twists of fate. So next time you’re thinking about your financial situation, remember the things you love, and then think about having a discussion about life insurance.
2. Understand it: where life insurance fits in
With so many different products on the market, how do we know what is right for us?
It’s quite simple: if a mortgage is the means to enable our dreams & aspirations to come to fruition, think of life insurance purely as a mechanism to protect them, thinking about the following needs:
- You have a debt e.g. a mortgage that needs paying no matter what
- You want your loved ones to have money if you die
- You want the security of money in case of a specific trauma like cancer
- You need to ensure financial commitments are met if you become injured and can’t work
3. Do it: just start the conversation
Life insurance may not be the easiest thing to speak about, but until it’s mandated by the Government, it is a solution we need to start talking about and treat as normal. If you haven’t as yet had a conversation about life insurance, then perhaps it’s time to think about it. Aussie Life insurance can help with questions that you may have. Simply give us a call on 1300 44 55 66.
Of course every policy has different terms and conditions so you should consider the relevant Product Disclosure Statement to decide which product suits your situation.
Life insurance is not complicated. It’s not just for parents. It’s not just for the financially astute. It may be wrought with jargon and the industry should probably better evolve its communications, but the fact remains: It is a financial solution that actually pays a cash benefit in critical times of need, and that can’t be a bad thing.
Protecting what you cherish the most is priceless.