3 Reasons to Review Your Life Insurance Policy
You have life insurance, but do you know what it does for you?
No? Life insurance also known as term life insurance pays out a lump sum of money to your family or other beneficiaries on your death or on diagnosis of a terminal illness.
Now you’re probably asking, when does it pay out? Your life insurance will pay out in the event of your death or on the diagnosis of a terminal illness.
Typically getting life insurance falls into one of two areas:
- A life event: marriage, buying a house, starting a family, etc (often in preparation so one does not leave a financial burden if something should happen to you)
- Joining the workforce and taking on a life insurance policy through your superannuation
If you fall into this latter group, you’re not alone, but here are 3 reasons why you should look at your current life insurance policy:
- You have a spouse/partner/family that relies on your income and want them to have the same standard of living if something happens to you
- You have a mortgage and would not want your spouse/partner/family to have to sell the family home in the event of your death
- Your life policy is outdated for your current life needs
It’s not only smart, but financially responsible to look at what you’re paying for. By simply comparing what you have to what you need you could save.
So how much Life Insurance do you need? ASIC’s Moneysmart.gov.au website says:
"There is no correct answer, but more insurance gives you more protection. However, it also depends on what you can afford, so you may need to prioritise”.
To help work out the best level of insurance cover think about what cash you will have access to if you or your spouse died or became disabled. What money do you have in superannuation, shares, savings and existing insurance policies?
Then think about how much cash you would like. The difference between what you will have and what you would like is the amount of insurance cover you should get.
We know that no one likes to think about death or the cruel “what ifs” that life might throw you, but you can save money now for a better future.
Any advice provided in this article is general in nature and does not take into account your personal objectives, circumstances or needs. If in doubt about your personal situation you should seek financial advice.
FiftyUp Club Pty Ltd ACN 166 905 175 (FiftyUp Club) is the promoter of the FiftyUp Life Insurance product and is pleased to work with NobleOak to make this product available to you.
FiftyUp Life Insurance cover is issued by NobleOak Life Limited ABN 85 087 648 708 (AFSL No.247302). Please consider the FiftyUp Life Insurance PDS and NobleOak's Financial Services Guide which set out the terms and conditions for the life insurance cover to make sure this cover is right for you.
FiftyUp Club is a Corporate Authorised Representative (AR number 465649) of RevTech Media Pty Ltd (ABN 75 150 963 474), AFSL No. AFSL 455982.