Family & Couples Life Insurance
It often makes good sense to get Life Insurance for both partners in a relationship, even if only one couple is working and you have no dependants. As well as the added protection, most insurance companies also offer Couples Life Insurance premium discounts of 5-10% when compared with individual life policies.
Family Life Insurance helps ensure your family’s financial security in the event your death or diagnosis of terminal illness. It is paid as a lump sum to the beneficiaries of your choice.
Why get Couples Life Insurance?
When both partners are employed, Couples Life Insurance can help replace a partner’s income in the event of his or her death. It is also recommended for younger couples who are still in the early stages of building a solid financial foundation for themselves. Weddings can have a costly, and if the couple is covering most or all of the costs, this type of insurance can lessen the financial impact should the worst happen.
Even if one partner is not working, it still makes good sense to take out Couples Life Insurance, especially if that partner is primarily responsible for raising the children, as Couples Insurance will help cover the costs of a babysitter or childcare if needed.
Do you need Family Life Insurance?
This type of Life Insurance is designed to cover the daily living costs of your dependants if you were to pass away suddenly, including food, clothing, mortgage, rent and education.
Family Life Insurance is most recommended when you are the main source of family income, as it will protect your children and other dependants from facing financial difficulties should you no longer be able to work. Family Life Insurance is also worth considering for the parent who is not the main breadwinner, as it can cover their contribution as family chef, chauffeur and caregiver.
When deciding the level of cover right for you, it is worth doing some calculations that take into account your family’s specific financial goals, such as paying off the mortgage and covering school fees.
How much Couples Life Insurance should I get?
There are three main areas to take into account when weighing up your insurance options:
Income
If only one partner is earning a salary, that partner should be insured for the larger amount. If both partners earn a similar amount, a joint Life Insurance policy with similar coverage for each partner will ensure family expenses will continue to be covered if one partner passes away.
Partner responsibility
While both partners support the family, one may be a stay-at-home parent, putting most of his or her time into keeping house and raising the children. These responsibilities may be worth a major dollar sum in terms of childcare costs, hiring a housekeeper, gardening and so on.
The key point is to get insurance for more than just income replacement, as many activities such as child rearing can also have a significant dollar value.
Risk of injury or major illness
If you have a family history of life-altering medical conditions or serious illnesses, getting Couples Life Insurance might be a wise choice regardless of your level of income. It may also be worth considering taking out TPD (Total and Permanent Disability) insurance.
When should you take out Couples Life Insurance?
Just like individual Life Insurance, it is a good idea to obtain Couples Life Insurance while you are still relatively young and free of health issues, as more insurance options will be available to you during this time, and they are likely to be much cheaper. Many couples leave this decision until it’s too late, when their partner is already deceased, or when health problems are starting to arise.
Choosing Couples Life Insurance
Having the right Couples Life Insurance is about more than replacing you or your partner’s income should the worst ever happen. It is vital you take some time to think about the real dollar value of everything that you and your partner do for your family, whether it’s looking after the kids, performing home maintenance or even doing the weekly shopping. Wealth Smart’s advisers have the industry knowledge and expertise to help you make the right decision, ensuring your family will always be protected.
Who is eligible for Family Life Insurance?
Family Life Insurance can be a cost-effective way to secure your family’s future, starting from just $1.50 a week. All Australian residents between the ages of 18 and 64 can apply. Family Life Insurance premiums can vary according several factors including:
- Your age and gender
- Whether or not you smoke
- Your occupation
Most policies available are similar in their conditions and level of coverage and do not require medical or blood tests.
What types of Family Life Insurance are available?
Most policies offer a similar level of benefit and you can tailor a Family Life Insurance policy to suit your family’s specific needs, including the amount paid out to beneficiaries. If your family has young children, for example, the lump sum payout may need to be around 10-12 times your family’s annual taxable earnings to ensure their needs are met for some time after your death.
Choosing Family Life Insurance
Family Life Insurance is the best way to ensure your partner and children can continue to enjoy the lifestyle you have worked so hard to provide them, should the worst ever happen.
Wealth Smart understands that the process of choosing a family insurance policy that is right, not just for you but for those who depend on you, can be a daunting and time-consuming task. That’s why we are committed to making the job as easy as possible. We offer a straightforward, comprehensive, and objective comparison of Family Life Insurance options from leading providers so you can make an informed choice that suits your unique situation and budget. You will have peace of mind knowing your family will always be looked after.
