Why Your Children May Trigger The Need For Life Insurance
Life Insurance has always been a risk product in need of yearly reviews, and the birth of your baby is also a trigger for checking and updating your term life insurance levels. Making sure you have the correct level of life insurance is about protecting your family’s lifestyle, and financial security of your children.
What would happen if either your partner or yourself passed away or became too sick or injured to work for a long period of time? Life insurance is about being financially secure, no matter what obstacles life may throw your way.
What is life insurance?
Life insurance pays a lump sum benefit to your beneficiaries or to your estate should you die from injury or illness.
When considering life insurance you may also like to consider income protection, trauma insurance and total and permanent disability insurance (TPD insurance).
How much life insurance is enough?
As a rule of thumb, many financial advisers would estimate you need an average of around 10 times your annual salary. If you have a baby or any additional children you may like to also factor in childcare expenses and future education costs. At the very least you would want enough funds to cover your family’s mortgage and living expenses.
Does your life insurance policy offer free child cover?
It’s always a good idea to review all of your options when researching which life insurance policy suits your needs. One particular option which may be beneficial to have is a life insurance policy which offers free child cover.
Premium free child cover is available through select life insurance companies in Australia. It means your child can be protected from traumatic events, giving you the option of staying at home to care for your child, or the additional funds can be used to pay for the best medical treatment available.
Depending on which insurance company you purchase your term life insurance policy from, most child cover options can protect your child from 2 years of age. It pays a lump sum should your child suffer a traumatic event, usually with a minimum of $10,000 and a maximum of $200,000 worth of cover.
Another great bonus is that most child cover policies do not have a limit on the number of children that can be insured on the policy. This means your entire family can be protected!
If you don’t have any life insurance yet
In this instance you may like to utilise the services of an xLife financial adviser to compare life insurance quotes for you. We can determine the best life insurance policy for your situation and compare which policies offer free child cover.
If life insurance is too complicated…
If you are unsure, time poor, or find life insurance too complicated to review then xLife can look at your life insurance policy and ensure it still meets your needs. Once the correct life insurance policy is in place for you and for your partner, the worry will be lifted off your shoulders. You’ll be left with the peace of mind knowing that your family’s financial future is secured. Contact us a for Life Insurance Quotes today!
Exclusive Offer! Call xLife on 1300 135 205 today and
save up to 20% on your first year’s life insurance premium.
February 2010
