By: BrightRock
Life insurance often takes a back seat regarding financial planning, but it’s one of the most crucial steps toward securing your future and protecting your loved ones. As you reflect on your financial goals for the year ahead, making life insurance a priority can be one of the smartest decisions you make. Here’s why:
Life happens – be prepared for the unexpected
Life is unpredictable, and while we can’t foresee accidents, illnesses, or losses, we can prepare for them. Life insurance ensures that you are financially protected if the unexpected happens.
Protect your loved ones' financial future and your own
Your income supports many aspects of your family’s life – from daily living expenses to education and housing – and life insurance serves as a safety net to help maintain that support. Life insurance can assist with covering school fees, paying the mortgage, or contributing to essential household costs.
But it’s important to note that the level of cover on your policy may not fully maintain your family’s lifestyle. This is due to underinsurance, as many people find the amount of cover they buy (or can afford) is lower than their actual need. A good financial adviser can help you identify how much cover you need and which policy best fits your pocket.
Life insurance only takes care of important expenses after your death but includes options for disability and income protection to provide payouts if you become permanently or temporarily disabled. Your policy can also include additional expenses cover (often called critical illness or dread disease cover) for medical expenses and necessary lifestyle adjustments that may arise from a defined serious illness or injury.
It’s more affordable than you think
Many people hesitate to consider life insurance, assuming it’s an expensive commitment. The truth is, life cover can be surprisingly affordable, especially if you secure it at a younger age when premiums tend to be lower for the same amount of cover. It’s an investment in your future that delivers long-term value, providing you with peace of mind while also protecting your family’s financial stability.
Additionally, by choosing a needs-matched life insurance product, you can ensure that you’re only paying for the cover you need at each stage of your life, avoiding unnecessary costs for cover you don’t require.
You can pay off debts and loans
For those carrying debt, life insurance is critical. Outstanding loans like bonds, car payments, or personal debt can quickly become a financial burden for a family dealing with the financial impacts of a breadwinner’s death or disability. A life insurance policy can be used to ensure that those debts are covered so that you and your loved ones don’t inherit unnecessary stress.
You can tailor life insurance to your needs
Importantly, life insurance is not one-size-fits-all. Policies can be tailored to suit your needs and life stage. Whether you’re a young professional just starting out, a parent safeguarding your children’s future, or an established professional looking to leave a legacy, there’s a policy that aligns with your financial goals. It’s about protecting what matters most to you in a way that fits your budget and your life circumstances.
Before making any financial decisions, you should consult with a qualified independent financial professional to evaluate your circumstances and objectives. With the right guidance, you can confidently choose a life insurance solution that truly fits your unique circumstances.
* BrightRock is a financial services provider
PERSONAL FINANCE