What is Life Insurance?
Life cover is also known as Term Life insurance, or Death cover. It provides a lump sum payment in the event of the life insured's death; or on diagnosis of a terminal illness, where death is likely to occur within 12 months.
Why do I need Life Insurance?
If the unthinkable were to happen to a main income source to the family, then this can put a major burden on the family. Life Cover can be used to the following:
- Mortgage or Rent payments
- Funeral Expenses
- General Living Expenses
- Car and Transport Expenses
- Children’s education
How can I pay for my Life Insurance?
The benefit of Life Cover is that the yearly premium can be paid for out of your Superannuation. This is quite a favourable option as it doesn’t directly affect families instant cash flow.
Alternatively, Life Cover premiums can be paid in Monthly or Annual instalments direct from your bank account depending on the Insurance Provider.
Stepped Premiums VS Levelled Premiums
Stepped Premiums gradually increase each year the policy is taken out. Levelled Premiums is where the price is locked in for a period of time.
Levelled Premiums generally have a higher initial cost but over the long term they can save money for the policy holder. Levelled Premiums are generally beneficial for the policy holder if taking the policy out for long term.
At Sheffield Financial Advisors we specialise in helping Australians determine an appropriate level of Life Insurance cover for their personal circumstances & needs. As the appropriate cover amount is different for every individual we provide tailored solutions.