6 GOOD REASONS WHY WE NEED LIFE INSURANCE |Master Your Money Now

Life insurance may seem like a wasted expense within your financial plan, however, it can provide financial security for any of your life challenges. If you are still unsure why you need life insurance, here are six good reasons why life insurance is a necessity

AVOID YOUR HOME BEING REPOSSESSED

If your mortgage relies on the money you make, then you can’t afford to be without life insurance. In 2012 alone, a staggering 1,500¹ repossession orders in Australia were issued – that’s a record high! If you were to die unexpectedly and your family could not keep up with the repayments, your house could become just another statistic; the home you have worked so hard to secure would be lost and your family left vulnerable. However, protect your household with life insurance and you could ensure mortgage repayments are met, even after you are gone.

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COVER CHILD CARE COSTS

A recent study by the University of Canberra found that the cost for the average family to raise two children has now soared to an overwhelming $812,000². If you were to pass away before your children have grown, who would foot that bill? A payout from your life insurance policy could pay for the hours of childcare your children may need, and as plans are cheaper than you’d imagine, it’s a small investment to make if you consider nothing to be more important than your kids’ wellbeing.

SECURE A GOOD EDUCATION FOR YOUR CHILDREN

Understandably, you want your children to have the best opportunities in life. As university education fees in Australia are now considered amongst the most expensive in the world, setting up a life insurance plan has never been so important. A payout could meet the costs to support your children’s future learning and careers in the eventuality that you are no longer around.

SAFEGUARD YOUR LOVED ONES FROM INHERITING YOUR DEBTS

A life insurance payment could write off your debts and ensure future bills are met – meaning that your loved ones won’t be at risk of being chased by your creditors for the money you owe. Earlier this year, the Children’s Commissioner revealed the disturbing truth that children as young as six years old are concerned over rising transport, energy and health care costs³. No parent wants their baby’s childhood destroyed by money worries.

ENSURE FUNERAL COSTS ARE COVERED

The average funeral costs up to an unbelievable $14,000⁴. As a funeral bill is one we don’t usually prepare for until someone close to us has died, we are left very little time to plan financially. Thankfully, life insurance covers funeral charges to relieve the financial burden on your loved ones at, what would already be, an incredibly difficult time for them.

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