Love life, protect it and insure your love

28 Jun 2013

By Campbell Sorell

Recently a friend passed away from a heart attack, with no warning signs, after a workout at his local gym.

It is a reminder of the fragilities in life and the need for all of us to give thought to the protection of our loved ones should the unthinkable happen.

How often do you say, 'oh yes, I must get to that. It's on my list of things to do'?

What would happen to your family if you never made it home from work today? If you were to pass away, would they be able to continue to live in the same house and be able to pay the rent or mortgage payments? Would they have time to re-evaluate their position? How can you be sure that you can provide for them even after you have left this planet?

Nobody knows when their number is up and we need to understand whether other people would be financially devastated if we were to pass away prematurely. We need to love life and protect it which is achieved by insuring our love.

Sadly, Australia is one of the most under-insured nations in the developed world in terms of personal insurance. A recent study by the Australian Bureau of Statistics showed that Australians with dependents were under insured by $1.37 trillion. This indicates that only 4% of our population with children has sufficient insurance. Other studies confirm that three in every four Australians will be diagnosed with a serious illness during their working life. We insure our cars, health and home but when it comes to our lives we don't always give it as much thought.

We don't like to think about 'worst case scenarios', but taking time to consider the risks and having a contingency plan provides much needed financial protection. Life insurance pays a lump sum on your death so if the worst happens, your careful planning will pay off the mortgage and other debts, provide for your children's education and address other financial needs while your family adjusts to a new life. This will allow them time to grieve and focus on supporting each other rather than worrying about their finances, thereby allowing them a little more freedom of action.

Allow your family to continue to live the life you worked so hard to provide for them. It's about peace of mind and making sure they are cared for – otherwise, their future could be at stake. Your best strategy is to organise your cover while you are young, healthy and qualify for the best premiums thereby ensuring you can get the cover. One of the biggest risks of waiting to take out life insurance is assuming your health will stay the same. Tomorrow's health is not guaranteed.
In order to achieve the right combination of growth and stability for your goals and time horizon preparing for your family's future means more than investing appropriately. No amount of money can ever replace a person but more than anything, life insurance can help provide protection for the uncertainties in life. Without a doubt, having life insurance will bring you and your family peace of mind. It is one thing you can be sure of and no longer question if they will be taken care of when you are gone.

Yes, it's called 'life' insurance, but it could instead be called 'love' insurance. After all, this protection is really an expression of love. It lets loved ones know that you care so much that you have made plans to provide for their well-being, even after you are gone. So if protecting the ones you love is important to you, please act now.

It could be one of the most important decisions you will ever make.

Your family is your responsibility. And if you pass away, that responsibility doesn't die with you.

Review your life insurance needs, act now and please see a financial adviser if you need assistance.

To learn more about Campbell, view his online profile.

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