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Turns out most Aussies don’t have life insurance, thinking it’s too expensive. But let’s face it, it’s time we thought about looking after our loved ones should something happen. Here’s how to create that financial plan.

Fred Schebesta, publisher of LifeInsuranceFinder.com.au says, “Australians need to be aware of the consequences of not having life insurance and what this will mean for their loved ones in the event of their death. There are very grave repercussions to leaving your family without cover that can bring severe financial hardship for them.

For those wanting to take action and take out a life insurance policy, at a price that won’t break the budget Mr. Schebesta has the following tips:


1. Assess Your current financial situation

Consider how much you would need to cover all debts such as mortgage and credit cards, ongoing family living costs such as food and electricity, children’s education costs and how much your partner might need for retirement.


2. Compare the different policies available

Gain a clear understanding of the different features and benefits of each policy and determine which are necessary for your personal situation. For example, you may wish to consider paying extra for Family Protection benefit which can provide a lump sum payment if your child suffers an event specified by the provider.
LifeInsuranceFinder.com.au has taken the hard work out of this process by explaining these details in plain English minus the technical jargon and presents people with affordable options for taking out a policy.

LifeInsuranceFinder.com.au has taken the hard work out of this process by explaining these details in plain English minus the technical jargon and presents people with affordable options for taking out a policy.



3. Talk to an insurance consultant

An advisor can help you structure policies that are catered to your needs and will provide you with adequate protection in the event of something happening.

4. Read the fine print

Before taking out life insurance, it is crucial to have a clear understanding of exactly what events you will be covered for. To avoid your claim being denied, check all policy exclusions that will be listed in the Product Disclosure Statement (PDS).



What are some of the pitfalls of not having life insurance?


* Leaving outstanding debts and ongoing expenses to your family

Losing the family’s primary breadwinner where there is inadequate life cover can cause great financial suffering to the dependents. They are now faced with covering any outstanding debts (mortgage, credit card, etc.) on top of their ongoing living expenses (groceries, bills, clothes and transport). Even if you are not the primary breadwinner, the loss of any streams of income can have a huge impact on the family budget.


* Commitment to financial obligations

Even if you are not married and do not have any children, your death can still bring hardship to others if you have major financial obligations. Your loss could mean that others are left with any personal debt you have, medical costs incurred leading up to your death, and the costs of your funeral.


* Forced to live a cheaper way of life

If the loss of income to your home occurs, it could affect certain aspects of your loved one’s everyday life such as your children’s schooling or which home you live in. It may force them to find cheaper alternatives or make sacrifices to the way they are currently living.


LifeInsuranceFinder.com.au is a free service helping Australians find appropriate life or income protection insurance solutions.

How important are finances to you?