Life Cover – Mitigating Financial Risk for Your Family 

Have you thought about what would happen to your family if you couldn’t provide for them anymore? Would they be financially secure or have to rely on the charity of others? Don’t leave that answer to others. Control the situation. Have stress-free peace of mind now and focus on spending time with your family. 

Let’s face it: one of the biggest worries that keeps you awake at night is ensuring your family is financially secure. Life cover will contribute to solving that problem when you are no longer around. 

Life Insurance Cover 

Life insurance cover protects your family from financial worries. It provides them with financial security and helps pay debt, tuition, living, medical and final expenses. It is usually tax-free and paid immediately on death. It is an insurance product that pays a specified lump sum in the case of death, disability or critical illness. Premiums are usually higher for whole-of-life insurance. 

Types of Life Insurance Cover 

Life cover could be  

  • Whole of life, meaning that it covers the client until death and pays out a specified lump sum and  
  • Term life cover is over a specific period, like for a mortgage or loan, or covers the working years of a person to replace lost income for a beneficiary or spouse. It does not pay a lump sum at the end of the term, only if the person dies before the end of the term. Other kinds also include group life, accidental death or permanent disability.  

Why buy Life Insurance? 

  • Manages risk – Insurance is one of the best ways to manage life risk and ensure the financial security of family and loved ones. 
  • Guaranteed protection – Whole life cover offers a guaranteed amount at death that beneficiaries can plan their financial affairs around. 
  • Income replacement – The lump sum payment can cover the loss of income for your family when you are no longer around. 
  • Mortgage and healthcare costs covered – Life insurance could cover your mortgage or medical and healthcare costs if you become disabled.  
  • Childcare – Will your spouse be able to look after your children when you pass on? What happens if both you and your spouse or partner die unexpectedly? Life cover can provide for the care of your children when you can’t anymore. 
  • Tuition – Knowing that your children’s education will be taken care of in the event of your demise will give you peace of mind. 
  • Preserve family business – The lump sum payout could provide a necessary boost to keep the family business afloat. The family business might be the primary source of income supporting your family. 
  • Eliminate household debt – Debt and loans are a reality in today’s high-cost-of-living world. A life cover payout could reduce debt and relieve financial pressures for your family. 
  • Tax-free benefit – Life cover lump sums are generally paid without tax. This means the total insured amount will be made available to your beneficiaries. 

The younger you are, the cheaper your life cover is. Don’t wait till you are older; you might have to reduce the life coverage because premiums are too high. 

Your financial advisor can assist with finding the right life cover to protect your family and loved ones and leave them financially secure and stress-free. Chat with your advisor today.  

Please note, the above is for educational purposes only and does not constitute advice. You should always contact your advisor for a personal consultation. 

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above. 

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