Do you need life insurance?

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Did you know that we also offer cost-effective insurance options in addition to finance? We consider it part of our responsibility to you to do whatever we can to ensure you and your family never suffer any financial hardship, or experience any difficulty in meeting your financial obligations. We genuinely care about the welfare of you and your family and are here to support you with insurance options that will meet your specific needs and keep you covered in any eventuality.

Why do you need life insurance?

Australians seem to live in the belief that we are all bullet-proof, but the truth is we are just as vulnerable to events beyond our control as the next person. Take Karen for example.

Karen was a 38-year old office manager working for a manufacturing company. After her divorce, she was left with a mortgage and a 14 year old son to support. Karen was very worried about what would happen to her son if she should pass away unexpectedly, he always worked hard and did well at school and she wanted to make sure he would be able to go on to university.

Karen took out a life insurance policy for $500,000 – enough to cover her mortgage and support her son if necessary. She also took out an income protection policy in case she ever became temporarily unable to work.

Less than two years later, Karen went home from work early one afternoon with a bad headache and the feeling she was coming down with the flu. Unfortunately, it was worse than that. Karen lost consciousness later that day and was rushed to hospital. She had suffered a brain haemorrhage and died that evening.

Under her life insurance policy, Karen nominated her son as her sole beneficiary. He received the $500,000 benefit through a trust fund set up by the trust’s solicitors. Whilst the money may not make up for the loss of his mother, Karen’s son will be able to live securely and complete his university studies without financial hardship*.

Is your current insurance enough?

Most people have some form of insurance in their super – but is it enough? The good thing about a life insurance policy is that it pays out a lump sum in the event of your death that your beneficiaries can use as they see fit. Other forms of insurance cover for specific events such as loss of employment, illness or permanent disability can also be arranged to cover your obligations.

Karen’s example tells us that planning your insurance requirements carefully can make all the difference, not only to you but to the life and future of your loved ones. If you’d like to find out more or get some advice on which insurance options would be suitable for you and your particular situation, then please give us a call. We’re happy to discuss your requirements without any obligation and when you’ve made your decision, help you to find the most cost-effective insurance solution for you.

*This example is based on a real insurance claim, however names have been changed. Grounds for making a claim and the level of benefit can vary from one insurance policy to another depending on the terms of the policy. We can help you arrange insurance that is right for your needs. The information contained in this article is general in nature and does not take into account your personal circumstances, financial needs or objectives. Before acting on any information, you should seek the appropriate financial advice and read the relevant Product Disclosure Statement or other offer document prior to acquiring any financial product.

Element Finance, Mortgage Broker for Fremantle, Joondalup & Perth
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