If you’re wondering whether or not you should buy life insurance, ask yourself this one question: “Would my death leave anyone in a financial bind?” If you answer “yes”, it may be time to get serious about shopping for life insurance.
Do you need Life Cover?
In the exciting journey of life, there will be uncertainties, and these are occasions for you to assume additional responsibilities.
The coveted arrival of a new member in the family, a new mortgage for your dream home, or the milestone of your marriage may all be planned life events, but bring their share of uncertainty.
These are times when you need to be financially prepared so that your family is fully protected, should something unfortunate happen to you.
Careful consideration should be given to the ownership and beneficiary arrangements of any life insurance purchased. You should consult with an insurance adviser or lawyer to coordinate your insurance program, to ensure the life insurance product meets an estate owner’s needs.
Making Life Cover work
You can use your Life Cover to:
- help pay such expenses as final illness and funeral costs, eliminating the need to sell estate assets to cover these costs
- pay off the mortgage and any other debts you may have
- leave a surviving loved one with a nest egg towards their retirement
- allow loved ones to grieve without worrying about the bills provide:– income to surviving family members– provide education funds for children and grandchildren– equalisation of inheritances (life insurance may be left to those heirs who do not wish to receive a part of the family business or farm, for example)
- funding of business continuation plans
- funding charitable gifts
Losing your partner is a difficult time to have to deal with money issues. There will be a lot to sort out, but you don’t have to do everything at once. There are some things that you will need to take care of now, and others that you can put in place for the future.
If your partner had life insurance, you could be entitled to a lump sum payout. Check with your partner’s insurance company.
If the payout is a significant amount you may want to consider your investment options.
Once you feel able, you will also need to review and update your own insurance policies – especially if you have children. If your partner was named as the beneficiary in your policies, that will also need to change.