Life insurance is possibly the easiest type of personal insurance to understand. It provides you with a lump-sum payment in the event of your death or if you are diagnosed as terminally ill (meeting specific criteria). This payment can be used to pay off debts or financially look after any family/dependents you may leave behind.

Who should get life insurance?

Life insurance may be suitable if you need to protect your wealth and any assets you have acquired in your lifetime. It may also be used to provide financial support and stability for your family in the event of your death.

How much life insurance you take out is specific to your personal situation and values. It is therefore important to speak to a financial adviser to discuss the benefits and disadvantages of this type of insurance cover.

How do you get and pay for life insurance?

You can obtain life insurance directly with an insurance company or superannuation fund, meaning the premiums may be either debited from your bank account or deducted from your superannuation account balance.

However, it’s important to remember that how you choose to pay your life insurance premiums can impact on other financial factors such as your disposable income or the balance of your retirement savings.

By engaging a financial adviser to assist you, your financial and family situation can be reviewed as a whole, which will help you to ascertain the appropriate level of cover you need, and how you would prefer to pay the premiums. 

Our team of Financial Planning specialists are here to help

To ensure you are equipped with everything you need to make an informed decision, get in touch with the Rethink Financial Planning team for our personalised financial advice. Our Newcastle financial advisers will work through the pros and cons of whether or not this is the right strategy for you.

Contact us on 4962 4440 or you can fill out our Pre-appointment Questionnaire here and one of the team will be in touch.

Any information provided on this website is general advice only and does not take account of investors’ objectives, financial situation or needs. Before acting on this general advice, investors should therefore consider the appropriateness of the advice having regard to their objectives, financial situation or needs.