Life Insurance: Are You Covered?

The problem with a problem is that we don’t know its one until it’s often too late.

Life Insurance is an often-misunderstood product with many people thinking – I can’t afford it or it’s only for people who have high net wealth.


Why life insurance is important:

Life Insurance helps to protect your assets and family if something was to happen to you. If you’re the sole breadwinner or operate your own business and suddenly, your income was gone – would your family be ok?? Would they have enough income to pay the mortgage, school fees and manage everyday living expenses, as well as potentially taking over the running of your business.

Life insurance is a protection against life’s unwanted events. And while we don’t want to focus on the doom and gloom – being prepared is being forearmed, and if tragedy were to strike, you could be rest assured your family would be ok without you.


Most people are under-insured:

Unfortunately, we see all too often people who are not adequately protected. There are over twelve million Australian’s who participate in the workforce and it’s been estimated about eight million of them don’t have adequate insurance to cover loss of income.

For most of us, our capacity to earn an income is the most valuable asset we have. For example, someone on an average salary of $50,000 (in today’s dollars) has the potential to earn over $1.7m during their working life. But we tend not to think of our capacity to earn a living as an asset that need’s insuring.

With many Superannuation funds include life cover as part of their product – the level of life insurance across the board is increasing. But most people rarely take the time to look at their Super cover to determine if it’s adequate, resulting in shortfalls and underinsurance.


How to check your life insurance:

  1. Check your current Superfund level of cover and determine if that is adequate.
  2. List what assets and level of debt you currently have – this will help you calculate the shortfall between your current life cover and your current level of debt.
  3. Consider looking at increasing your level of protection by taking out income protection or additional life insurance.


Need more help?

Get in touch with the team at Simmons Livingstone today for a no-obligation review of your income and life cover protection.

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