Protecting loved ones is a natural instinct, but how can you protect them if you’re not around? In the event of your death life insurance helps your family maintain their financial position in the event of your death by providing your beneficiaries with an agreed lump sum.
Life insurance can be critical for a secure financial future. In simple terms, you insure yourself for a particular amount and, in the unfortunate event that you die, the insurer pays that amount.
The lump sum payment can be used to help with the repayment of debts, the covering of future needs (for example, the cost of children’s education or long-term care), as well as providing funds for investment to generate an income or to keep your business afloat.
We don’t like to think about ‘worst case scenarios’ but taking some time to consider the risks and having a contingency plan is like carrying an umbrella – it can’t stop the rain but can provide much needed financial protection during life’s storms.
Factors to consider when looking at Life Insurance are:
• You should make sure you have an adequate level of cover for your needs. Under-insurance can present a serious problem.
• Changes in your personal circumstances (ie taking on additional debt) often necessitate the need for higher insurance levels.
• Death benefits received via a superannuation policy may be taxed.
Many, but not all, life insurance contracts allow a policy owner to nominate a beneficiary, or beneficiaries, to receive any life insurance policy proceeds being payable to the policy owner.
Ensure you nominate your beneficiary and make changes as your circumstances change.
Life insurance isn’t complicated, and needn’t be expensive. Even if you don’t have dependants, life insurance can provide other benefits such as covering funeral expenses, tidying up your affairs, or providing someone you love with an inheritance.
This is general advice only and does not consider your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or seek advice from a financial planner. Information is current at the date of issue and may change. TLK Wealth Pty Ltd, Corporate Authorised Representative No 1007998 of MyPlanner™ Australia Pty Ltd | AFSL 4345905| ABN 28 140 520 225|.
This information is of a general nature only and does not take into account your particular objectives, financial situation or needs. Accordingly the information should not be used, relied upon or treated as a substitute for specific financial advice. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither TLK Wealth Pty Ltd nor its employees, associated entities or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information. TLK Wealth Pty Ltd is authorised representative #1007998 of MyPlanner Professional Services Pty Ltd AFSL #425542.