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Life insurance provides people with protection against the financial consequences of an insured event (for example - death, disablement, serious illness or injury). Wealth protection through life insurance is an important consideration in any comprehensive financial plan alongside wealth creation, as it provides financial protection for ourselves and our families.
Considering coverage
Wealth protection is especially important for those with dependants and financial commitments - when considering life insurance it is thus worth determining what commitments you have, and how your family would cope if you were no longer able to earn an income. The specific situation of an individual and their family will determine the right mix of life insurance cover, but the following are a few factors:
- Mortgages and other debts (including overdraft credits, car loan etc).
- Day-to-day living expenses of your family (including food, clothing, school fees, energy costs etc).
- Future, planned education expenses for children (including school, university etc).
- Expenses related to death (including funeral expenses, unsettled medical bills etc).
Insurance requirements are invariably different at different life stages, making it essential that your life insurance is reviewed at regular intervals. This is especially when there is a change in family circumstances, such as the birth of a child or the purchase of a new home.
Main types of life insurance
The main types of life insurance policies include term life and total & permanent disability, trauma insurance, income protection and business expenses insurance. As these types of cover will provide protection for different events, they are often combined to ensure adequate protection. Please click through using the links above for additional information.
Professional advice
Please note that life insurance is a technical area, with different policies and coverage options available from a range of Australian insurers. Always read the product disclosure statement for full details on any policy you are considering, and if unsure about the best policy for you and your family it is worth seeking professional advice to ensure the most appropriate cover.
 | Smart Strategies for Wealth Protection 2009 - MLC | | Life Insurance Factsheet - IFSA | | Smarter Insurance - ABA, IFSA & Insurance Council of Australia |
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| Risk Advice | Not sure about the right level of risk cover? Life insurance advice with commission rebates. more info
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