Moments that matter: When to consider life cover

Moments that matter: considering life cover  

If you’re buying your dream home, planning a family or about to start a new job, you’ll know that these are some of the key times for considering life cover. Because life cover is about protecting the people you love and the lifestyle you’ve worked hard to create. 

1. Buying a property
Investing in a property is an exciting milestone. It not only provides a home but also a sense of security.
However, in the event of one of life’s unexpected challenges, such as accidental injury or prolonged illness, mortgage repayments can cause financial stress. In these times, it’s important that financial obligations can continue to be met.
A good place to start is to assess your own personal situation and whether you and your loved ones could meet your mortgage repayments if you were unable to work. 
Buying a home is the second most popular reason for people taking out a life cover policy¹.

2. Getting married
Making a lifetime commitment to a partner is the beginning of new experiences with someone you love. 
In the partnership of marriage you’ll share many things, financials being one of them. From assets to debt, it’s important to consider how life cover can protect you and your partner in the future.
Although life cover isn’t likely to be on your gift registry, it’s a good idea to review your and your partner’s financial situation. In the instance where you have shared financial obligations, it’s important to assess if you and your partner could maintain your lifestyle if one of you were unable to earn an income. 

3. Starting a family
Having children can be an exciting stage of life, and it gives us the incentive to continue building a future full of opportunity. 
With children comes the responsibility of providing security for your family, especially in times of uncertainty or when unexpected life events happen. 
It’s important to acknowledge what the impact would be on your family’s day-to-day lifestyle if you didn’t have your income. With the potential to cover school fees, living expenses and the ongoing wellbeing of your loved ones, life cover can provide the future you imagine for you and your loved ones.
81% of people strongly agree that life cover helps protect your family¹.

4. New job
You’ve scored your dream job or you’re embarking on a new business venture, which usually comes with a pay rise or increased responsibility. 
Companies and the government provide a certain level of cover in the event of illness or injury, however in most cases the cover provided through WorkCover and public welfare schemes don’t provide adequate protection.
WorkCover only provides cover if you’re injured at work, and not for any illness or injury sustained outside of work. As a state-based system, the level of cover could also differ based on your location, as will the included benefits. 
For those eligible for Disability Pension payments, the single maximum rate is, in most cases, not enough for those whose income is heavily depended on. 
The right insurance policy can protect your income and relieve financial stress if you find yourself off work for an extended period of time. More importantly you will know what you’re covered for, so there are no surprises when it comes time to make a claim. 
Friends, family and colleagues are considered the best people to talk to when considering life cover. 

Whatever stage of life you’re at, you should make sure you can continue living the life you love.

 

1. Source: TAL Usage and Attitude Survey (September 2014).