Life Insurance - It’s not for you

Life Insurance really isn’t for you, it’s for those you leave behind - By Richard Toon

It is a weird thing when you think about it. You need to spend your hard-earned money now, to give someone else some money if you die.

What do you get when you buy Life Insurance - apart from a bunch of money when the event occurs?

The two major triggers for buying Life Insurance are family and debt. These triggers happen because we want certainty for our family even if we aren’t there.

We want to ensure our family can repay the mortgage so that they get to live in their own family home. This means the kids get to wake up in their own bedrooms every morning even though Mum or Dad may have passed early. This means that a surviving life partner does not have to double down on work just at the time the family needs them the most. It means that kids can look back and say, “we are so grateful Mum or Dad had the foresight to look after our financial future.”

Now that’s “Peace of Mind”.

Life Insurance is not for you – it’s for those you leave behind.

Another major reason to purchase Life Insurance is to ensure that a business survives even though a shareholder may not.

Life Insurance can provide funding for a surviving business partner to purchase the business at the time of one owner’s death. It may ensure a business is able to pay its debt and plug the gap of losing a key shareholder or employee.

That’s “Peace of Mind”.

Life insurance may seem simple but there are guiding principles to its application:

1. The right amount of money, to the right person at the right time.

2. Regularly reviewing the amount of cover you have in place as your circumstances and debt levels change

3. Seek qualified, trusted, and experienced advice when deciding on principle number one.