A real benefit for you and your family
Understanding the importance of insurance and why it plays a vital role in your financial security will help provide financial security for you and your family when you need it most.
Assure your greatest asset – you!
You secure your car and your home. So, it makes perfect sense to insure your biggest asset – you!
As we move forward in life, find a spouse, start a family and maybe start a business, the importance of increasing insurance in the long run. This is because insurance is a financial security network that will help you take care of yourself and your loved ones when you really need it.
5 Reasons why insurance is important
Why is insurance important? Let us consider five key factors.
- Safety for you and your family
Your family depends on your financial support to enjoy a decent standard of living, so insurance is especially important when starting a family. This means that the people who are most important in your life can be protected from financial hardship in the unlikely event of an accident.
- Reduce stress during difficult times
None of us know who is close to him. Unexpected tragedies, such as illness, injury, or permanent disability, even death, can cause great emotional distress and grief. By getting a place, you or your family can alleviate your financial stress and focus on restoring and rebuilding your life.
- Enjoy financial security
No matter what your financial situation is today, unexpected events can see that it is all very fast. Insurance provides money, so in case of an emergency, you and your family hope to move.
- Peace of mind
There is no substitute for your health and well-being – or your role in your family. But at least you have the peace of mind of knowing that if something happens to you, your family’s financial security will help you.
- Leave a legacy
The benefit of dying can ensure your child’s future in the future and protect their standard of living.
Case study
Tony and Karen – A young family
The following scenario only shows the importance of insurance and is not based on actual facts.
Tony, 34, and Karen, 33, recently renovated their new home to give Nicholas and Rocky, their twin sons, 4 extra power. It also means buying more secured debt because Karen is a housewife. To protect the family, Tony decided to provide protection.
During a cricket match on a simple Saturday afternoon in the yard with the twins, Tony fell and broke his leg. It seemed like a small vacation was more difficult than originally planned, and Tony required a number of rehabilitation surgeries followed by physical therapy.
This means that Tony has been out of work for more than six months, and although his employer is popular, Tony only had two weeks because of him.
Fortunately, Tony’s income security insurance means he has earned a whopping 80% of his regular salary (included). The couple had to tighten their belts until Tony got back on his feet, but they were able to repay the house debt, otherwise it would not have been possible without the income.
Lifetime insurance
Coverage of death and eventual illness, known as life insurance, can help ensure the future of your family when you are gone.
How job insurance works
Longevity insurance works through death rates or long-term diagnosis.
Paying means that your family will be financially supported when you are no longer here. It also means that your loved ones can focus on supporting each other in times of great need, rather than worrying about how they will pay their bills and manage other expenses.
Do you really need coverage?
None of us wants to think about our death, but none of us knows what will happen in the future. According to a study by Lifught and Natsem *, 1 in 5 families suffers from parental deaths, accidents or illnesses that prevent parents from working. Sadly, 8 Australian families lose their working parents every day.
It is not worth risking without your family. Talk to your financial advisor to make sure you and your loved one are safe.
* Source: Insufficient Life Insurance Report / Natsem – Awareness of the cost of social and economic insurance through insurance, February 2010.
How much coverage should you get?
It is important to have a proper level of life insurance.
The starting point to consider the level of coverage that is right for you is to cover all your current debt, including home equity loans. Think about how much your family needs to maintain the way they live now and in the future based on your wealth.
Assignment to the user
Life insurance helps ensure that your family can continue the way you planned for them, even when you are no longer there. It is important to include customers in your policy so that you can be assured that profits will come to those who are most important to you.
People often appoint employers whom they trust financially, such as spouses or co-workers (either personal or business) or young children. There are laws about who you can appoint as a beneficiary of insurance with your big money. In the case of coverage that is held outside of the actual retention, the designated user is usually a person, company or trust. If you choose to offer multiple users, you must specify the percentage of benefits you want each person to receive.