Life Insurance - How Much Do You Need?

How Much Life Insurance Do You Need?

Life insurance can give financial peace of mind to many people. After all, it’s always reassuring to know that your dependants will still be able to enjoy financial security if you’re not around to provide for them. Particularly when you have outstanding debt such as a home loan to repay, having appropriate life insurance in place means you don’t have to worry about saddling your relatives with unwelcome debt.

Unfortunately, without expert advice, you could end up with a life insurance product that doesn’t meet your needs, or conversely pay over the odds for an insurance policy that’s uneconomical. Here are three pointers to ensuring your life insurance is suitable for your individual circumstances.

1. Periodically review your cover options

Over time, life changes such as paying off a home loan, children or a career change, can all mean that your need for life insurance alters. It’s important to periodically review the life insurance product you hold to check that it’s still right for your needs.

If in doubt, seek expert advice to ensure you’re not paying for something that doesn’t suit your circumstances.

2. Look at other life insurance options

In some cases, life insurance may not be the best option financially. If you already have extensive assets, for example, a pay-out may not justify the premium price. You may also already have insurance for certain items through other policies – for example many home owners will already have a home loan insurance policy.

3. Compare life insurance products

There are a number of financial providers across Australia, each offering a range of life insurance products. Although it’s tempting to opt for a policy from a familiar name, or perhaps use products offered by your current bank, these may not necessarily give you the best deal. A skilled advisor can find products that are affordably priced yet still give the cover you need.

To maximise the chances of getting appropriate life insurance, product specific knowledge as well as information on life insurance rules and regulations are vital. A specialist, professional legal advisor can offer expert advice that can help make sense of this complicated insurance area and deal with any disputes that arise in relation to life insurance.

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