5 Reasons Why Everyone Should Have Life Insurance

Rowan McDonald

Head of TPD and General Insurance Claims | Canberra

What is life insurance?

Life insurance is a financial tool that provides financial protection for an individual’s loved ones in the event of their unexpected death. While it may not be something that people like to think about, the fact is that none of us know when our time will come and having a life insurance policy can provide peace of mind and financial security for our loved ones.

Why have life insurance?

Here are five reasons why everyone should consider purchasing a life insurance policy:

To provide for the financial needs of your family: One of the primary reasons why people purchase life insurance is to ensure that their loved ones will be financially taken care of in the event of their death. Life insurance can provide a source of funds to pay for outstanding debts, funeral and burial expenses, and ongoing living expenses, such as mortgage payments, rent, and other bills.

To cover funeral and burial expenses: Funeral and burial expenses can be expensive, and many people do not have the funds set aside to cover these costs. A life insurance policy can provide a lump sum payment to cover these expenses, ensuring that your loved ones will not have to bear this financial burden in addition to their grief.

To pay off debts and mortgages: If you have outstanding debts or a mortgage at the time of your death, your loved ones may be responsible for paying them off. A life insurance policy can provide the funds necessary to pay off these debts and provide financial security for your loved ones.

To create a financial legacy: In addition to providing financial protection for your loved ones, a life insurance policy can also be used to create a financial legacy. You can use the proceeds from your life insurance policy to fund charitable giving, create a trust for future generations, or invest in a business or other financial ventures.

To provide peace of mind: Having a life insurance policy can provide peace of mind knowing that your loved ones will be financially taken care of in the event of your death. It can also be a source of comfort knowing that you have taken steps to protect your family’s financial future.

In conclusion, life insurance is an important financial tool that can provide financial protection for an individual’s loved ones in the event of their unexpected death. Whether you are single, married, or have children, it is important to consider the financial implications of your death and take steps to protect your loved ones. By purchasing a life insurance policy, you can ensure that your loved ones will be financially taken care of and have the resources they need to move forward.

Life insurance in super vs retail policies

Having life insurance inside your superannuation can be a convenient and cost-effective way to protect your loved ones in the event of your death. When you have life insurance inside your superannuation, the premiums for the policy are paid using your superannuation funds, which can be a tax-effective way to fund your life insurance coverage.

Additionally, having life insurance inside your superannuation can be a more affordable option compared to purchasing a standalone life insurance policy, as the premiums may be lower due to the bulk buying power of the superannuation fund. It is important to carefully review the terms and conditions of any life insurance policy inside your superannuation, and to ensure that it meets your needs and the needs of your loved ones.

How can I claim life insurance?

Know your rights.

If you are terminally ill, with less than 24 months to live, you may be able to access your life insurance prior to your death.

If a loved one has passed, you may be entitled to claim some or all of their life insurance policy.

If you are yet to make a life insurance claim, you are entitled to legal representation and Littles can help you.

If you have already lodged a claim and it has been rejected by a superannuation fund or insurer, you may be entitled to have the decision reviewed through an internal resolution procedure.

If your complaint has been upheld, you may be able to litigate in a court or lodge a complaint with the Australian Financial Complaints Authority (AFCA).

There are strict time limits to challenge an insurer’s decision, so it’s important you seek legal advice as soon as possible.

What is the Littles difference?

Put simply, Littles are experts in superannuation and insurance law matters.

Our insurance team has helped thousands of consumers claim their entitlements, and our Head of TPD and General Insurance has extensive industry knowledge and insight on how to maximise your prospects of success.

We also speak your language, at sixteen languages and counting. Forget paying for a translator or for a lawyer who doesn’t understand you and your cultural background.

All our superannuation and insurance law matters are conducted on a no win, no fee basis, and we don’t charge you upfront for any disbursements necessary to prosecute your claim.

If you would like superannuation and insurance law advice, reach out to Littles today by using our free Claim Checker.

About the author

Littles’ Head of TPD and General Insurance, Rowan McDonald, is an expert in insurance and superannuation law. Rowan is an experienced litigator and has prosecuted thousands of successful insurance claims for consumers.

Having worked in the insurance industry for over fifteen years, Rowan has an extensive industry contact list and regularly presents to disability support groups, financial industry professionals and multicultural organisations.

Rowan has also advised some of Australia’s top insurers, giving him unrivalled insight into the claim process from all perspectives. Rowan takes a pragmatic and common-sense approach to the advice he provides his clients.

For your free, personal consultation get in touch with Rowan today.