2 June 2021
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People keep telling you to get Life Insurance but you’re not convinced just yet.
The simple fact is that anything can happen in life. And as unpleasant as it may be, you have to think about the possibility of a future that doesn’t have you in it.
In this article, we aim to answer the key question… What do you need to know about Life Insurance?
These are the things to keep in mind when you’re comparing quotes from different providers.
Item #1 – It’s Not Just for Older People
If it’s not affecting you right now, you can easily put it to the back of your mind. However, this line of thinking doesn’t account for the fact that the unexpected can happen. Somebody who’s as fit as a fiddle could still pass away due to an unforeseen accident.
Life Insurance is for anybody who wants to provide financial protection for their loved ones. That includes young and healthy people.
Item #2 – It’s About Managing Risk
It’s a form of risk management, a way for you to protect those you love if the worst-case scenario comes to pass. That’s because a good policy ensures your loved ones won’t struggle financially if they lose you.
Item #3 – The DIME Technique Can Help You Work Out How Much You Need
One of the key challenges you face comes from figuring out how much Life Insurance you need. It’s possible to under-insure yourself, which could lead to your beneficiaries not receiving as much as they should. It’s also possible to over-insure, which leads to you paying more for your policy.
Use the DIME technique to prevent either scenario from happening.
This technique covers the four key numbers you must consider when choosing a policy:
- Debt
- Income
- Mortgage
- Education
Start by ensuring you cover the income that your loved one will lose out on if you pass away. From there, add on the debts you may leave behind and your mortgage. Finally, consider how much the cost of further education for your children may be. Add all of the numbers together and you have the minimum amount that your policy should cover.
Item #4 – You Can Change Your Policy If Your Circumstances Change
Any major life event can trigger you to update your policy. Such events include getting married, having children, and even changing jobs. The assumption that a policy should remain static may lead to you becoming under-insured.
Item #5 – It Doesn’t Have to Be Expensive
You may look at Life Insurance as an unneeded expense in your life. Worse yet, some quotes may reinforce this opinion. But Life Insurance doesn’t have to cost an enormous amount of money.
The specific cost of your policy will depend on various factors. These include your physical health, age, and the type of policy you choose.
Do You Have Any Questions?
The above covers some of the key facts about Life Insurance that you need to know before you apply. Hopefully, this means you have a better understanding of what Life Insurance is and why it’s important.
But you may have more questions.
That’s where NobleOak comes in. We’re happy to discuss your Life Insurance questions with you at any time. Our goal is to ensure you’re as informed as possible about your policy and what it covers. Get in touch today if you have any questions.
And that leads us to the final question:
To insure or not to insure?
That is a question that only you can answer, perhaps with the help of some professional advice. This is general information only and does not take into consideration your individual circumstances, objectives, financial situation, or needs.
For an instant quote from NobleOak, visit www.nobleoak.com.au/anmfsa or phone 1300 108 490 and mention ‘ANMF – SA Branch’. Cover available for Australian residents only.
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NobleOak Life Limited ABN 85 087 648 708 AFSL 247302 issues NobleOak life insurance products. See the PDS for product details and to consider if the product is right for you. General information only – it does not take your circumstances into account and is not financial advice. Online quotes are indicative only – your premium will take into account your age, occupation, sum insured, health and pastimes. You should not cancel any existing life insurance product until you have been informed in writing that your new cover is in place.
Resources:
https://www.thebalancecareers.com/life-insurance-2386084
https://www.forbes.com/sites/timmaurer/2016/01/05/10-things-you-absolutely-need-to-know-about-life-insurance/#604b478560ca
https://www.huffingtonpost.co.uk/entry/life-insurance-facts-need-know
https://lifehappens.org/blog/10-things-you-didnt-know-about-life-insurance/
https://www.finder.com.au/weekly-cost-life-insurance