life Insurance helps to remove the financial stress if a loved one passes away prematurely. 

Although it is unpleasant to think about the ‘what if's' in life, it's important to take time to evaluate how well you and your family are protected in the event the worst happens.  

Life insurance, or Term Life insurance, provides a cash lump sum in the event of death and in many cases upon diagnosis of terminal illness.  

How much Life Insurance do I need?

The amount of cover you choose is called the sum insured.  Amounts of cover vary for different people.  Typically, people with high debts and or young children tend to have higher amounts of life insurance.  If someone has small or no debts, and no children, then the need for cover is reduced.  This is best discussed with your adviser.

The level of cover really depends on what you want for your family/loved ones in the event of your death, or someone else's.  Usually, things like removing debts, childcare expenses, replacement of income, living expenses, and education expenses can be considered. 

It is not unusual for people to be insured for over $1,000,000 and in some cases much more.  It comes down to what we discuss is most important to you, and then calculate the cover from there.

Ordinary Cover or Through Superannuation? 

Life insurance can be taken out as a separate policy or held within superannuation.  There are a number of factors to be considered in making this decision, as there are advantages and disadvantages associated with both.  Although it is tax effective to hold life insurance within superannuation, whether or not this is advisable will depend on your individual situation.  

We will be able to assist you in determining which option best suits your needs.  

Individual Policy

An individual Life Insurance policy is generally owned by the insured person.  There may be instances where this policy is owned by either a company or another individual (like a spouse or business partner).

Policy within Superannuation

Life Insurance can also be held under a superannuation plan.  Although it is tax effective to hold life insurance within superannuation, whether or not this is advisable will depend on your individual situation.  

There are a number of factors to be considered in making this decision, as there are advantages and disadvantages associated with both.   This should be discussed with your financial adviser.

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