When Should You Get Life Insurance?

by Guest Author on · 2 comments

Choosing life insurance can be a big decision – one that you definitely want to get right. But how do you know when you should get life insurance? Are you ever too young or old to get life insurance? Who does life insurance work best for? How do you find the right policy for you?

These are just some of the questions people ask when they are thinking about getting life insurance. And they are all good questions to ask – which is why we have set ourselves the task of answering them.

What does life insurance offer?

There is not one specific type of life insurance. Each insurer and each policy can offer different levels of cover and different types of cover. However, the basic idea behind life insurance is that it helps to offer financial protection to those you leave behind.

Say you have a partner, a few kids and a mortgage. If you were no longer around, could your partner cope financially? Who would pay the mortgage, the bills, the school fees, the day-to-day expenses? If your family relies on your income, life insurance can offer a substitute for that income to help them get back on their feet.

Life insurance also offers other features. Funeral cover can be included in a life insurance policy, which can provide a fast payout to help cover funeral expenses. Some policies also offer early payouts for terminal illness or loss of sight or limbs, which could help to cover everyday expenses or medical treatment.

When should you get life insurance?

There is no age when you must get life insurance. Life insurance depends more on your circumstances than your age.

If you have people who depend on you financially, then life insurance could be beneficial. If you have a partner, kids, an elderly relative, or anyone else who depends on you, your life insurance payout could make life much easier for them if you were no longer around.

Similarly, if you have financial obligations, such as a mortgage, loans or credit card debts, you need to think about how your family would cope paying those off if something were to happen to you. A life insurance payout could pay off the mortgage or other debts, allowing your family to worry less about their finances.

How do you choose the right health insurance?

Before you look into getting life insurance, first find out if you have any cover elsewhere. You may have life insurance with work, or included in your superannuation. If that's the case, work out how much cover you have, and whether you need more.

To work out how much life insurance you need, try using a life insurance calculator, or speak to a professional. Even if you work part time or you are a stay-at-home parent, don't undervalue the work you do at home as a cook, a cleaner, a nanny, and a taxi driver!

To find the best life insurance, research all your options and compare policies and insurers. Think about how much you will pay, but don't choose your policy just because it's cheap, as it may not offer the cover you need. When you find the right policy, review it regularly to make sure it keeps pace with your changing lifestyle.

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{ 2 comments… read them below or add one }

Lorne Marr June 18, 2014 at 3:21 pm

Good point on even part timers needing life insurance. If there are people dependent on your income you need life insurance.


Lance Ekum June 19, 2014 at 8:13 am

Thanks for stopping by! Definitely – if there are others dependent upon you, life insurance is a good thing to understand and have.


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