If something were to happen to you, would your family be able to cope, not just emotionally but financially? Would they have enough to cover bills, mortgage and living expenses without your income coming in? Life insurance can help ensure your loved ones and your debts are taken care of after you've gone.
Post-GFC many households are feeling increased financial pressure due to rising living costs. So understandably, some feel they cannot afford life insurance. But imagine how your family would feel if you werenâ€™t around to help out.
Lower cost insurance strategies
A financial adviser can help you find the right protection for you and your family and your budget. Here are a few of the strategies they may suggest:
Access through a wrap:
One strategy your adviser may suggest is using a low complexity wrap to access discounts on life insurance. In this scenario, not only will your adviser help you determine the right insurance, level of cover and appropriate structure, but they can also help set you up to pay your premiums through a compact wrap which can give you access to discounted premiums.
Another strategy your adviser may suggest is to take out insurance through your super fund. Not only can this make it more affordable on a daily basis, with premiums coming out of super instead of your take home pay, but it can also have tax benefits. Better yet, as super funds buy insurance in bulk, they can often provide premiums at a lower cost.
These days many advisers are happy to give advice on a one-off basis on a particular topic as an alternative to undertaking a comprehensive and plan.
So instead of going uninsured, talk to an adviser about the possibility and costs of one-off advice. Not only can this help you find the right protection today but you'll also be developing a relationship if you ever want more holistic advice in the future.
When times are tough, it's even more important to cover your family against financial misfortune. Of course, the best strategy for you will depend on your personal situation and needs. So talk to an adviser today about the best option for low cost insurance.
The information is current as at 07/02/2016.
This information does not constitute financial advice. It has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation and needs.