Dos and Don’ts When Getting Life Insurance in Australia

Life Insurance in Australia is the sort of thing you might know you need, but it’s easy to forget about it or put it off. After all, you may not want to dwell too much on the situations where you might have to use it.

But if you have people who rely on you financially, it makes sense to plan for the unlikely event that you might not be able to provide for them.

Finding the right life insurance policy can be overwhelming, especially when you don’t know where or how to start, so your trusted financial adviser in Newcastle – Newcastle Financial Planning Group – put together a selection of life insurance dos and don’ts to help guide you:

Understanding How Life Insurance in Australia Works

 Do’s

1. Do Get to Know Your Family Better

You are on the right track if you have given some thought to how your family would cope financially if something were to happen to you. If you haven’t thought about life insurance and your family’s financial needs in the event of your death, it’s a good idea to think about it now.

2. Do Get Insurance Coverage That Suits Your Needs

As well as considering how much cover you need, it’s essential to make sure the insurance you get is suitable for your needs. For example, you may want to get insurance coverage and a death benefit that pays out in full before tax so that your family doesn’t have to pay any tax when they access it.

3. Do Ask for Help If You Need It

Contacting a financial adviser can make finding the right protection for you and your family easier. It’s a good idea to speak to them about your options for life insurance and ask them questions about what’s available to you.

4. Do Speak to Your Loved Ones

If you have children or other people financially dependent on you, it’s important to discuss your options with them. If you have someone you trust to help you manage your insurance policy, speaking to them about your options can help you make an informed decision.

5. Do Buy Enough Coverage

It’s vital to ensure you have enough coverage to protect your family if you were to die unexpectedly and have a claim paid out.

 Don’ts

1. Don’t Put Off Getting Life Insurance

There are many reasons why people put off getting life insurance, from it being a difficult decision to make or just not wanting to think about death. But if you have people relying on you financially, getting cover sooner rather than later can ensure they are protected if you were to die unexpectedly.

2. Don’t Leave It All to Your Partner

Depending on your relationship, your partner may not be ready to discuss the possibility of your death or the impact it could have on them and your family. Make sure to speak about life insurance with them before the worst happens.

3. Don’t Forget About Saving for the Future

Life insurance is not a way to replace saving for the future or making plans to deal with debts. It’s an essential part of how you plan for the unexpected. If you have any obligations, it’s essential to consider how they could potentially be paid off, too.

Conclusion

If you have people you love and care about, it makes sense to make sure you have a plan in place for their financial wellbeing when you’re gone. Hopefully, these dos and don’ts will help set you on the right track regarding life insurance.

If you’re ready to start looking for life insurance and want to find out more about the different types of cover and how much coverage you need, it’s a good idea to speak to a financial adviser in Newcastle.

Newcastle Financial Planning Group can provide you with sound financial advice in Newcastle, so you can be prepared for your future and ensure your family’s financial stability, too. Contact us today and set an appointment with our financial adviser!

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DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.