Life insurance can be a sensitive subject, but investing in a life insurance policy is essential to protect the financial security of your family.
With so many options available, it can be difficult to choose what life insurance policy best fits you and your family’s needs.
Here are five tips to help you decide before investing in a life insurance policy.
Investing in your family's future
When choosing the right life insurance policy, it's important to make sure that it fits your current and future budget.
That being said, life insurance is not the sort of investment where you want to cut corners.
It may cost extra, but a comprehensive life insurance policy is worth considering.
What's important is to always choose a policy that fits your needs and that you can afford.
Estimate your family’s expenses
There are great tools available online to compare life insurance policies before making a decision but first, it’s important to sit down and estimate the likely expenses your family will need to be covered.
Along with expenses such as the mortgage, or university tuition, other smaller payments need to be factored in, such as groceries, car payments and utility bills for example.
Take the time to look over your finances and estimate what your family truly needs to be comfortable in the event that you were not around to take care of them.
Protect yourself from illnesses and serious injuries
Most life insurance policies today not only cover your family if you were to die, they also provide financial cover in the event of you having an illness or injury so serious that you're not able to perform your work any longer.
When choosing the best life insurance policy for you, consider talking to an adviser about optional income protection insurance.
The adviser will be able to provide you with the exact terms of the policy before you take it out, and give you information about how the benefits come into effect and the amounts that may be paid out for example.
Look at other policy options
The best fit life insurance policy for you will include several options that match you and your family’s lifestyle and concerns.
Talk to your adviser to get to know each of the policy options available beyond life insurance.
Most life insurance policies also include options for funeral insurance, total and permanent disability, or trauma insurance.
It can be tempting to put off taking out life insurance, but the relaxation that comes with knowing you have your family covered in the event of the unexpected happening is definately worth making it a priority.
Every member of the household should be covered, which can also qualify you for a discount when you take out more than one policy with the same insurer.
Find out more about your life insurance policy options.