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One of the best ways to secure your family’s future is by obtaining a death cover insurance policy. It is a traditional life insurance policy that backs up your ability in meeting your family's financial obligations in case you pass away unexpectedly. Death cover is commonly known as life cover in the Australian market.
Death cover can deliver peace of mind for you and your family. If something happens, this type of insurance can help secure your family's future, and ensure that they don't need to face the burden of financial uncertainty while simultaneously coping with grief.
Lump sum payments in the event of death or terminal illness Advance payments to help cover the immediate costs Financial planning and counselling benefits for your family Benefit payments available in the event of serious injury or illness.
No one knows what will happen in the future, and it can be hard to tell what the immediate and ongoing effects of loss might have on your family. The range of benefits available with death cover policies can let you minimise the impact as far as possible, and take proactive steps to care for your children and partner.
Whether you want to ensure that your family can maintain their quality of life, not have to struggle with debts and mounting bills in your absence or simply want to minimise the financial burdens of loss, you can choose cover to suit.
How do I determine my life insurance needs?
It is difficult to set a standard insurance policy that would apply to all policy holders. There is not just one death cover that can be considered to be ideal to all, which is why it is important to assess and compare different policies to determine which plan would be most suitable to you and your family's needs. Deciding on the death cover amount to insure may not be such as a simple task, but the best way to calculate the right amount to match your needs, consider:
It is difficult to set a standard insurance policy that would apply to all policy holders. There is not just one death cover that can be considered to be ideal to all, which is why it is important to assess and compare different policies to determine which plan would be most suitable to you and your family's needs. Deciding on the death cover amount to insure may not be such as a simple task, but the best way to calculate the right amount to match your needs, consider:
You current annual income. Replacing your lost income for the years required
Short-term and long-term debts. This often includes mortgage, credit card debts, personal loan, and car loan
Your immediate expenses. This includes food, clothing and shelter (rent payments, if you don't own your home)
Your children's education expenses. Consider the number of children you have and their respective ages to determine the total amount of expenses
Emergency funds. Work out how much of your expenses such as a funeral arrangement, medical treatments, legal fees and estate settlement costs can be covered by your savings.