Services: Life Insurance

This is one thing that’s a certainty – it’s just a matter of when.

If you have debts, a family, or both, you owe it to those you would be leaving behind to be well covered if something happens to you, or when your time is simply up!

If you have life insurance in your super fund, which many people do, it’s a good start. But this is often not enough on its own. In fact, Rice Walker actuaries estimated that life insurance held inside super represents only 20% of the cover actually required.

When considering this type of insurance, keep in mind the type of lifestyle you have worked hard for now, and the lifestyle you would want your family to enjoy if you weren’t here.

Investments and Financial Services Association – ‘Fast facts: A nation exposed!’ August 2005.

Case Study - Life Insurance in Action

John and I had always dreamt of bringing up our children in the country. Eight years after we married and our son, James, was in grade 1. John took a teaching job in the country. We found a property just out of town and took a mortgage to buy it along with a Life Insurance policy to protect us just in case.

Six months ago, while driving home from the Football club, John’s car collided with another and he was killed.

I never thought something like this would happen to us!

The lump sum I received from the Life Insurance policy helped me to pay off the mortgage with funds left over. My insurer then offered a financial planning service which enabled me to get advice on how I should use the rest of the money. I also used the grief support service offered by our insurance company to help me through this tough time.

I am now selling the farm and plan to buy a smaller cottage nearby so James can grow up in the country just as his father envisioned.

Sarah Davies

* Based on a real claim. Names have been changed.