Every day, we take care of our loved ones in many different ways. With the right life insurance, we can continue to do that for many years to come, long after we are no longer with them.
Death is one of few certainties in life, yet most people avoid talking about it. In fact, a survey undertaken by Independent Age in the UK found that almost half of people aged 40 to 64 don’t even feel comfortable broaching the subject with their ageing parents.
Accountants and finance professionals understand better than many others the importance of sound forward planning. However, even they may put off getting life insurance, because the subject of death is uncomfortable to talk about.
Now more than ever, it is important to put aside any qualms and help make sure your loved ones are financially secure no matter what the future will bring.
Did you know, death can be an expensive business?
According to the Australian Government’s Moneysmart website, funeral costs alone range from A$4000 for a basic cremation up to A$15,000 for a more elaborate burial – factoring in expenses such as funeral director fees, legal documents and burial or cremation costs.
In most cases, an assortment of other costs must also be settled, including end-of-life medical or care bills, administrative fees relating to wills and estate planning, and any outstanding loans or debt in the deceased person’s name.
Over the longer term, funds may be required to cover a partner or dependant children’s ongoing living expenses, such as mortgage repayments, education fees and household bills.
When someone dies without making adequate financial provisions, it can take a toll on those they leave behind – particularly in families where the deceased had been a primary provider.
How life insurance can ease the burden
Whatever our age, health status or financial position, it is worth asking ourselves, “Would my death create financial hardship for the ones I love?” If the answer is “Yes”, then life insurance could be a worthy investment.
Term life insurance cover provides a lump-sum payment to your beneficiaries, to help them take care of funeral costs and maintain their lifestyle in the long term. This is why, when reviewing life insurance options, it is important to check that your policy aligns with your current financial responsibilities and continues to do so as your circumstances change.
Research suggests that many Australians don’t have an adequate amount of cover in their policies to provide the support their life insurance beneficiaries would need if they ever made a claim.
Rice Warner’s Underinsurance in Australia 2020 report found that the default life insurance cover offered by superannuation funds provides only 65 to 70 per cent of basic level death cover needs for average households, and a much lower proportion for families with children. Such a deficit would no doubt cause significant financial stress for family members, during an already difficult time.
Uncomfortable as they are, honest conversations about death – and your family’s continued financial wellbeing – are important. Life insurance that will be sufficient to provide for our loved ones’ needs is just another way you care for them now and into the future.
For a life insurance quote from NobleOak, visit quote.nobleoak.com.au/cpa-slp or call 1300 108 490 and mention “CPA” to access your member offer*.
* Member offer - CPA Australia members are entitled to a 12% discount (which remains for the life of the cover) on NobleOak's Premium Life Direct standard premium rates on term Life Insurance cover.
Important information – NobleOak Life Limited ABN 85 087 648 708 AFSL 247302 is the issuer of NobleOak life insurance products. Please read the PDS available on the website at www.nobleoak.com.au for information and product terms. This article is general information only – it does not consider your objectives, financial situation or needs.