We've all heard the life insurance pitch, that it's the responsible thing to provide for your family. The truth is, life insurance buys time for those close to you to discover their own way forward.

How long would your family take to find their new 'normal' if you weren't around? ANSWER

Life is never the same after the death of someone close to
you.

You're never prepared. It's a bridge you've never crossed, and there's no way to
rehearse what it will be like.

A friend of ours lost her husband suddenly. For her to find her new 'normal', it
simply took time. Time spent with friends, time travelling, time thinking. There are
no shortcuts.

At BRAVEday it's our business to ensure you're looked after at claim time.
That's why we make sure you get the right amount of life cover that buys you and
your family time when it really matters.

How much do I need?

Only you can determine the right level of cover. You don't want to be overinsured,
but you do want to look after your loved ones when you're not around.

When you're deciding your level of cover, consider:

  • debts
  • ongoing education requirements for children
  • a cash buffer for your partner to adjust to life without you (this takes time)

You may also want to consider leaving funds for your partner's retirement.

What sort of policy should I take out?

There are two options here. Under a 'rate for age' policy, your premium increases each year as you get older. Under a 'level' premium policy, the cost of insurance is the same over the lifetime of the policy, until you reach age 65 or age 80.

'Level' policies cost a little more to start with, but over time you can save tens of thousands of dollars. The younger you are when you take out a 'level' life insurance policy, the lower the premium will be for the life of the policy and the more you'll save.

Can I take out some of each?

You can, and we recommend you do. Consider your short term requirements (for instance, paying off the mortgage, getting the kids through high school) for the 'rate for age' option, and use a 'level' policy for the things you want available to you long term.

For example, if you retired at 60, life insurance costs under a 'rate by age' policy would be excessive. But if you'd taken out a 'level' contract in your early 30s, the cost won't increase, and you'd still be covered.

Are there any extra benefits?

If you go through certain life-changing events, most insurers can increase the amount of cover you need without a new application. For example, having a child, getting married or divorced, or buying a new house are all considered life changing experiences.

Most Life Insurance policies also contain a 'terminal illness' benefit, which means your policy may pay out before you die, if you're diagnosed with a terminal illness. That way, you're able to spend quality time with your family before you pass away. An even more powerful option is Living Assurance.

Every insurance company offers a different range of benefits and options.

Your BRAVEday adviser can help you choose the best option for your specific needs.

Take action

Contact us to talk about the life you want for your family, and how to make sure it happens, no matter what.

Or, discover the five events that could stop you cold by clicking on the Quotes & Advice link on the main menu.