Raising a family comes with lots of responsibilities – financial, practical and emotional. Life insurance can be a great way to help you to continue to protect your loved ones financially, should you no longer be around. Life insurance for families can offer you real peace of mind, knowing you’ve taken steps to help protect those you care about most. But unfortunately, sometimes Australians put off taking out life insurance, because they feel it’s too complicated or expensive to sort.
The good news is, this isn’t usually the case at all. Starting a life insurance policy can be surprisingly affordable and easy to do. At Direct Cover we keep things simple for you, with easy to understand Life Insurance, a straightforward application process and immediate cover1. So you can enjoy instant peace of mind..
This article will help you think about whether your family needs life insurance and how much you might be able to leave loved ones.
What is life insurance?
Life insurance pays a lump sum to your loved ones if you should die during the term of your policy. Your family can use the payout however they need to. They might use it to help with:
- Covering everyday living costs
- Paying off debts
- Paying the mortgage
- Children’s education or childcare costs
Some policies also pay out early if you’re diagnosed with a terminal illness. This can be a huge weight off your mind at a difficult time.
Do families need life insurance?
Not every family looks the same, but many households rely on one or two incomes to get by. If some of that income or practical support was suddenly lost, the financial impact could be significant. Even families with savings can find those funds disappear quickly without support from an insurance payout. So life insurance could make a great deal of sense for families.
Life insurance could be particularly important if you:
- Have children or dependants
- Pay rent or have a mortgage
- Share household bills with a partner
- Want to leave financial support for your family
How much will it cost to protect my family?
Many Australians over-estimate how much life insurance costs. But for families it is often more affordable than expected.
The cost of your Direct Cover Life Insurance policy will depend on the following factors:
- Your age
- Your gender
- Whether you are a smoker
- The benefit amount you choose
Our application process is easy and straight-forward, with no medical exams, blood tests or complicated forms. You simply answer some health and lifestyle questions, and you're all set. You can arrange everything over the phone. You can get your quick quote today and find out how much your life insurance could cost you with Cover Direct.
How much cover do I need?
With Direct Cover, if you’re an Australian resident aged 18 to 70, you could leave your loved ones up to $1.5 million, depending on your age when you apply.1
To help you work out how much cover you need, you should think about all the costs your loved ones will still need to cover if you were no longer around. You can offset these costs against any savings or investments you already have.
To calculate how big a payout you’d ideally like to leave, you should consider all the costs your loves one will need to cover, including:
- Mortgage debt or rent costs
- The cost of childcare or education
- Consider everyday living costs and utility bills
- Unexpected invoices for repairs or medical bills
- Funeral costs
You can read our article ‘How much life insurance do I need?’ to find out more.
Married and unmarried couples – where do they stand?
You don’t need to be married or in a partnership to protect your family with life insurance. Life insurance is for:
- Married couples
- Unmarried couples
- Single parents
- Anyone who has people who rely on them financially
What matters is financial dependence. Not marital status. You can usually nominate anyone you choose as your beneficiaries.
What happens if we divorce or separate?
Life changes and so with Direct Cover we keep things flexible. You can make changes to who your named beneficiaries are, at any time. You can also apply to change your benefit amount, subject to your age and personal circumstances at the time. This flexibility means you can help make sure you always have the cover you actually need.
Should I get life insurance if I’m single?
You don’t have to have a partner to take out life insurance. If you have anyone who depends on your financially, it could make good sense to have some cover in place. In fact, if you’re a single parent for example, it could be even more important to take out cover to help protect your children financially.
Life insurance for families can offer you and your loved ones real peace of mind. If you’d like to find out more about our straightforward Direct Cover Life Insurance, feel free to explore our FAQs or you can contact us directly on 1800 830 576.