Your forties are a critical time to develop your long-term financial plan. But between growing children, school fees, credit card debts and mortgages, Life Insurance and the future of your finances can be a long way from your mind.
At this age, it’s important to consider your insurance options, if you haven’t already. Life Insurance will protection your family if something happened to you, but would also help you form a long-term financial plan.
If you were to become ill or injured or pass away, there are probably many expenses that will need to be settled. You’re also leaving behind your children and partner, all of whom will need to be looked after financially. Even if you’re in a two-income household, it would be a big blow to your family if you were unable to earn an income.
Stay-at-home parents also need to consider insurance because of the invaluable work they do at home. Running the home and taking of the children is expensive to outsource, which you would need to do if you were unable to perform these functions yourself due to illness, injury or death.
Life Cover is an important investment at this age to ensure that you and your family are protected in the event of an emergency. If you were to pass away, Life Cover will provide a lump sum payment to your nominated beneficiary.
This payout will help cover the costs of your funeral, pay off your mortgage and other debts, and provide a level of financial security to your family in the future without you.
Total and Permanent Disability insurance will provide a lump sum payment to you if you’re injured and become permanently disabled. It helps pay for medical costs and your rehabilitation, while also settling any debts you may have.
TPD insurance is particularly important if you do have a family and dependants, as it will be very difficult for them to fund your care and rehabilitation. You may think you don’t need TPD insurance if you’re covered by Work Cover, but any insurance through your work will only cover you if you become disabled as a direct result of your workplace – and even then your cover may not be as comprehensive as TPD cover.
Trauma insurance, also known as critical illness insurance, will pay out a lump sum if you’re diagnosed with a serious medical condition. The payment is made when your illness is confirmed by a medical practitioner, not at death, to help cover medical costs and provide financial support to help your family with ongoing bills and other expenses.
Income Protection will provide ongoing regular payments of up to 75% of your regular salary if you become sick or injured and are temporarily unable to work. These payments will be made over a period of time as agreed in your policy.
Like TPD insurance, Income Protection covers you 24/7 so if you’re injured outside the workplace, you will still be able to provide for your family.
If you own your own business, then it’s also important you consider different types of insurance for your business if you, or one of your key workers, become ill or injured and your business suffers.
Business Expense Insurance lets you insure a percentage of your expenses to help cover the costs of running your business if you were unable to work. That means you can keep paying your rent, staff salaries, bills and other expenses your business may incur. The exact amount varies between policies.
You may also want to consider Keyman Insurance to be protected should a key member of your staff become ill or injured. Keyman Insurance will provide a continual cash flow to prevent the business from losing profits and help with the hire and training of replacement staff.
It’s important that you have all the right insurance policies in place in your forties as insurance can become more expensive as you get older, and you’ll want to provide the right protection for you and your family today. If you’re ready to start considering your options, our qualified and knowledgeable advisors will be able to talk you through what kind of policies you need, and will find them for you at the most competitive prices.