EJM Financial Services

Life Insurance: More Than Just Money

Life insurance can provide financial protection and peace of mind to you and your loved ones in certain unexpected situations. 

Many people believe it is reserved for long-term and significant life upheavals, such as death or becoming entirely and permanently incapacitated. However, it can also help in short-term occurrences such as illness and injury. 

There are actually four types of life insurance that have different purposes and protect you in different circumstances:

  1. Life Cover/Death Cover
  2. Income Protection Insurance
  3. Trauma Insurance
  4. TPD Insurance

To learn more about the four types of life insurance protection, here are some facts to know:

Life Insurance Could Secure Your Future

Since Australians spend the majority of their lives working and earning money to support their livelihoods and financial goals, it’s only fair that there is a method to protect your earnings when life unexpectancies can happen.

When the most unfortunate events occur, life insurance can alleviate some of your financial hardships.

Life Insurance Can Actually Be Affordable

A variety of criteria determines the cost of life insurance. Premiums may vary according to:

  • The type and amount of coverage chosen, 
  • payment frequency, 
  • Gender
  • Age
  • Health history and smoking status
  • Job circumstances and occupation

The good news is that life insurance is often less expensive than you might assume, and you always have the option to purchase enough coverage to cover the minimal premium. 

Plus, you may be able to purchase life insurance cost-effectively through your superannuation fund which may help alleviate some of the upfront costs. 

Life Insurance Is for All Ages

When it comes to financial security, it doesn’t matter how young or old you are or how healthy you are. Getting life insurance when you’re young and healthy can make it more economical in the long run. 

This is because rates usually are lower when you are in better health because you are deemed less of a risk. The most important thing is to not wait to get insurance protection until it’s too late. 

Life Insurance Can Be Purchased at Any Life Stage

Life insurance isn’t just for traditional families, the elderly, or people with a medical condition.

The truth is that accidents happen to everyone so it pays to be best prepared and protected. Life insurance could protect your income and even assist you with medical bills in case of emergencies. 

For the elderly, life insurance may prevent a health setback from having a significant financial impact on your retirement plans or from leaving your loved ones with funeral expenses that requires them to handle unexpected exuberant costs.

Match Your Level of Life Insurance Cover to Your Needs 

While you may have some protection in place, you may want to still examine if the insurance provided by your superannuation is adequate for your needs. The amount given by your life insurance policy may not be sufficient to meet your family’s financial demands, especially if you are no longer around to support them. 

For this reason, it’s critical to assess your current life insurance coverage and compare it to what you’d require if you become ill, injured, or in the event of your passing. Then, you may enhance your cover within your superannuation or search outside of your super fund for the coverage you want. 

It’s important to provide yourself the insurance cover that will give you peace of mind knowing you and your loved ones are protected from the unexpected. 

When it comes to major financial decisions, know that an experienced financial adviser may be able to assist you in understanding and selecting the most appropriate insurance plan for you, your needs, and your budget. 

As they may assess your situation and analyse various plans from multiple providers, you will also gain knowledge and learn for yourself and your family. 

If you’re looking for the best life insurance advice, EJM Financial Services offers tailor-fit solutions for every individual in Melbourne, Australia. With us, you can reach your financial goals—give us a call today!

EJM Financial Services Pty Ltd (ABN 63 006 492 182), is an Authorised Representative and credit representative of AMP Financial Planning Pty Limited, Australian Financial Services Licensee 232706 and Australian Credit Licence 32706. AMPFP Privacy Policy. Please read our Terms and conditions.
General Advice Warning: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.


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