When it comes to life insurance, there’s no one-size-fits-all approach. You’ll likely have different needs as your situation changes. We look at some typical milestones and why they’re a good opportunity to review your cover.
When it comes to life insurance, there’s no one-size-fits-all approach. You’ll likely have different needs as your situation changes. We look at some typical milestones and why they’re a good opportunity to review your cover.
Life isn’t static – it changes regularly, and so too do your life insurance needs. So whether you’re going through an exciting life stage, like getting married – or a more challenging one, like grieving a loss – it’s a good opportunity to review your situation. That way you can ensure the cover you have is always right for your circumstances.
At this stage of life, you may have limited responsibilities as you don't have any dependants. But you still need to take care of yourself and cover your bills should something happen and you’re not able to work. Income protection is generally an option you might consider for this life stage as it can help you sustain your lifestyle if you become sick or get injured and are unable to work.
Life Insurance is not as common at this life stage but there are advantages of buying life insurance early in life as you typically don’t have any serious health issues that can preclude you from getting cover later in life. You can also generally get a higher level of cover and a lower premium than when you are older.
For many people, getting married is often the trigger to start thinking seriously about life insurance and income protection. Income Protection insurance can help protect you and your partner financially against unforeseen events by providing you with a regular monthly payment so you can keep up with bills and debt repayments if you were sick or injured and unable to work.
If one of you dies, life insurance can help provide the surviving partner with financial stability to maintain their current standard of living, including making mortgage payments or rent and paying any ongoing expenses.
As a parent, you’re always looking out for your children’s best interests. So when you start or grow your family, you might consider life insurance to protect your loved ones financially. Whether you earn the main income for your family or do unpaid work, for example as a stay-at-home parent, there are benefits to having life insurance. Life cover will pay a lump sum to you or your family if you were to pass away or become terminally ill.
Income protection is also a valuable way to help provide financial support to your family, particularly if the household’s primary earner is unable to work for an extended period of time due to injury or illness.
When you buy a house, take on a new mortgage or increase your existing home loan, you should reassess your life insurance and income protection cover. This helps ensure your partner and family have enough money to pay off the balance in the event of your injury, illness or death so they can then stay in the family home without having to deal with extra financial burdens.
If you’re self-employed and you’ve made substantial new investments in your business – for example, due to the purchase of a new building, inventory or equipment – you may want your insurance to cover any accumulated debts to help avoid your family being responsible for outstanding business debts if you’re become sick or injured and unable to work.
Losing a spouse, getting divorced, remarrying or starting a new family can all be reasons to reassess your life insurance cover and beneficiaries. During a life event such as this, it’s a good time to consider if you need to update how much you’re covered for to fit your new financial circumstances.
If you’ve separated or divorced, you may want to decrease the cover amount or remove an ex-partner as a beneficiary. However, if you have children that you want to support, you may need to maintain or increase cover.
There are different types of cover you can take out, including life cover and income protection. Each has its own set of benefits to protect you and your loved ones.
Life cover provides a lump sum payment to you or your beneficiaries if you become terminally ill or pass away. This typically includes a:
Income protection provides you with a regular payment to replace a portion of your income if you’re unable to work due to a serious illness or accident. It’s designed to help you take care of your living expenses so you can focus on your recovery. This includes:
If you know what type and amount of cover you need, Zurich Ezicover might be suitable for you. With easy-to-understand policies and flexible cover options, you can tailor the right life cover and income protection policies for your budget and lifestyle. Get a quote online today.
The information on this Site does not take into account your objectives, financial situations or needs. Always consider its appropriateness and the applicable PDS, policy wording and Financial Services Guide. Target market determinations are available on our website. More info.