At different stages of life, there are some important times when you need to protect the things and people you love. Buying life insurance is one way of protection, and the first time you might consider insurance is when you buy a home. This is often a big transition in life, and it’s a place where you will have lots of comfort and memories. It should ultimately be a place where you are able to relax and unwind from a day’s work, and enjoy the space with your family. Yet if something were to happen to you, one of the largest sources of stress is mortgage repayments, and the possible inability to keep up with the payments. When deciding if you need life insurance, think about your financial situation, and decide whether you or your family would be able to continue with the repayments if you were unable to work. If other sources of income wouldn’t be able to cover the repayments, then considering life insurance when buying a home might be the right decision for you.
Another reason to take out life insurance is when you get married. When you are married, you and your partner will share many things, with one them being finances. It would be a good idea for both of you to meet with an advisor and discuss each others’ financial situations. This discussion should include whatever debts either of you may have, as well as assets and investments. After this meeting, assess the possibility if one of you wouldn’t be able to work, would both of you still be able to maintain a similar lifestyle? If not, taking out life insurance might be the best option. Or in the rare occurrence that neither of you would be able to work, then life insurance would almost be imperative.
Similarly with marriage, having children extends the amount of people that are affected financially by unexpected circumstance you might go through. Although children are a great gift in life, providing for them means that your work is a necessity for their survival. But if something would happen to you, a life insurance policy could cover living expenses, school fees, and rent or mortgage payments. This type of cover would mean that your children don’t need to sacrifice their future or potential. That kind of peace of mind is incredibly valuable, and perhaps obtaining life insurance is the right fit for you.
Apart from a familial situation, there’s the possibility that you’ll start a new job or decide to create a business. Either situation will often result in an increased salary and responsibility. The government and companies will often provide a certain amount of cover in case of illness or injury through Workcover, but Workcover will only provide cover if you are injured or sick at work, and cover will differ depending on your location. Alternatively, some may qualify for Disability Pension payments, but the rate paid is often not enough if you happen to have dependents. Therefore, choosing the best life insurance policy for you will help protect you, your family, and your income if you have to go through any unfortunate circumstances. Choose wisely, and know that you will have less stress in the future.