PLANNING FOR THE UNTHINKABLE
If you are single
If you are single, one of the main reasons for implementing life insurance would be to extinguish debt on your assets, e.g. property, in order to leave them debt-free for someone else’s benefit.
However, in the event of death, the person/people to whom you leave your assets may choose to sell, in which case, they will still benefit. In these circumstances, life insurance is a good idea but might not be absolutely essential.
If you have a partner and/or children
If you have a partner and/or children and something happens to you, the case for life insurance gains real traction. In these circumstances, Bongiorno recommends you consider:
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whether you want to extinguish debt (mortgage, car, investment properties, business loans, etc.), and
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how much your children/spouse will need to ensure their ongoing financial needs are met.
If you are not insured, your family members may not be able to lead the lifestyle to which they have become accustomed, particularly in instances where the surviving partner is not working or perhaps earning less than you.
Nominated beneficiaries
You may choose to leave your insurance proceeds to your partner, children or someone else, therefore it is critical that your nominated beneficiary remains up to date as this ensures any confusion or argument is avoided.
The cost
Life insurance is the least expensive of all insurances, being payable only upon death or in the event of a terminal illness. Most life insurance policies also include funeral expenses and financial planning costs.
Failing to have adequate life insurance in place could very well cause financial and emotional hardship to your loved ones. For peace of mind, please discuss your needs with one of Bongiorno’s qualified Risk Advisers. Please call on (02) 9326 2788