What is term life insurance?
The most popular type of life insurance in Australia is term life insurance. Life insurance cover provides a lump sum to your family in the event of death or terminal illness of the life insured. Life insurance is available to people aged between 17 and 69 and can usually be renewed until the policy anniversary date before their 99th birthday.
Term life insurance helps to protect the life insured's family by providing a lump sum in the event of death, which could be used to meet needs such as:
* Children's education costs
* Mortgage and other loan repayments
* Enabling the life insured's business to keep running
* Meeting the family's ongoing income needs
How much life insurance cover do I need?
There is an old saying 'A debt should not out last the person who created it'. So add up all you current debts to one figure and this is our starting point. From here, depending on individual circumstances we might add in educations cost of children, funeral costs and medical expenses. The last but not the least point to take into account is the future income requirements to the family. This last point is very important as many families struggle to survive after the death of the main income generator into the family.
Check our guide about "Types of life insurance" if you want more information.