WHAT ARE THE BENEFITS OF LIFE INSURANCE?

Life insurance can give you peace of mind knowing you and your loved ones will be looked after financially during a tough time, especially if they’re dependent on you and your ability to bring in an income.

Life insurance can also help cover costs if you have an accident or suffer an illness that impacts your ability to work or in the worst case, pass away. You’re usually free to use your life insurance payment as you wish, to help you cover costs like mortgage payments, day-to-day living expenses, school or university fees, loss of income, costs of healthcare and rehabilitation, and funeral expenses.

Life insurance is essentially a contract between you and your insurance provider. In exchange for your regular premium payments, your provider agrees to pay a benefit to your family, or you, for defined events including if you die or are diagnosed with a terminal illness, suffer an illness or have an accident – depending on the type of policy you take out.

Some life insurance providers may require you to undertake a medical examination, but others may simply ask you a series of questions about your health, family history and lifestyle.

You might think you’ll get around to taking out life insurance some day or that it’s something you don’t need until you’re older. But the truth is, none of us can predict what could happen in the future.

Whether you’re starting a family, making a large purchase such as buying a home or thinking about retirement, life insurance can’t stop whatever challenges life may throw at you. But it can provide a level of protection so that no matter what may lie around the corner, your family is better prepared financially – be it paying off the house or covering day-to-day expenses. Learn more about when you should get life insurance.

Most superannuation funds include a default level of life insurance but this may not be sufficient for your needs. That's why it's a good idea to speak to a qualified financial planner to look at your current situation and determine how much life insurance you might need, or you can use a life insurance calculator to get a quick overview.

When considering how much life insurance you’ll need, consider your significant debts, like your mortgage and any loans. Reflect on your annual income and what it pays for – not just the big things, but also daily expenses like groceries, kids’ schooling and routine bills. Also consider provisions for your spouse's retirement.

If you have other investments, superannuation or savings, don't forget to account for these as well. The difference between your financial obligations and your assets will give you a clearer picture of your ideal amount of cover.

Having an accident or falling ill can be unexpected and stressful – just like the costs to recover after you leave hospital.

Recover Cover is our unique range of flexible insurance products designed to support you if an unexpected event adversely affects your ability to work or carry out normal activities, as well as to help with the costs that come with recovery.

Created to complement our private health cover by providing financial support once you leave hospital, Recover Cover gives you cash to use in any way to help cover expenses like extra rehab, taxis to the doctor, hospital parking, babysitters or to help if you need time off work.