Finesse your finances with life insurance at every life stage

Life insurance is a financial safety net that can protect you and your loved ones during life’s unpredictable moments. By considering customising your life insurance policy to match your current needs at different stages of life, you can give yourself total peace of mind while building financial security for the future.

Here, we break down exactly how life insurance works for you at various life stages and why it could be such an important tool to help support your financial goals.

Why life insurance is important at every age

Think of life insurance as a ‘safety net’ that can change with you as you grow. Whether you’re a young professional just starting out, a parent providing for your family or you’re planning for retirement, life insurance can give you the financial security to protect those you care about most.

In Australia, life insurance benefits can be used for a number of things by your beneficiaries – from covering debts to providing for dependants, to easing unexpected financial burdens.

Benefits of building a financial safety net early

Choosing to take out a life insurance policy early can come with a number of advantages for you and your family:

• Lower premiums: Younger people generally pay lower premiums because they are less likely to have health issues or pass away prematurely.
• Financial planning: Building a life insurance plan early means you can integrate it into your long-term financial goals.
• Peace of mind: Knowing your loved ones are protected from financial hardship gives you lasting reassurance.

Key considerations when choosing life insurance

Just as there are benefits to keep in mind when researching life insurance for your life stage, there are also key factors that can be important to consider before you take out a policy.

• Type of policy: There are a variety of policies on the market to choose from, including term life insurance, which provides cover for a specific period, and full life insurance, which can keep you covered for life.   
• Cover amount: Calculate how much cover you need by considering your income, debts, future expenses (like higher education or buying a home), and the financial needs of your dependants.
• Premiums: The amount of cover you’re taking out, your age, gender, smoking status and involvement in high-risk hobbies (like skydiving) can all impact the cost of your premiums.
• Optional cover: Consider any additional benefits you might need, such as Serious Illness Insurance, Children’s Insurance or Total and Permanent Disability (TPD). 

Life insurance at key life stages

Below are some of the main stages of life where you may want to consider either getting life insurance or adjusting your level of cover:

Life insurance for young couples 

For young couples, life insurance can give you some much-needed financial stability as you plan your future together, especially to help protect shared responsibilities. Take mortgage repayments as an example. With adequate life insurance, you can make sure you or your partner will be able to keep making these repayments if one of you were to pass away. It can also be used to clear joint debts like car or personal loans, or used as a form of income replacement – providing financial support for you or your partner during a difficult time.

Life insurance for young families

Raising a family comes with added financial responsibilities, which is why many people in their 30s consider  taking out life insurance. 

It can be used for education costs, thereby supporting your children’s schooling and higher education even if one of their parents is no longer around. You can also put it towards living expenses, so that your family can maintain its current lifestyle with as few disruptions as possible. Or use it to cover unexpected medical expenses if and when they arise.

Learn more about protecting your family: Writing a will at a young age - as told by a probates lawyer 

Life insurance for families with older children

As your children grow, your financial priorities will naturally shift. Life insurance for families with older children can help cover things like university fees, future investments that create a financial cushion for your family’s aspirations, or healthcare costs so that you or your spouse can afford medical treatments for age-related ailments.

Life insurance for the mature single

For mature singles, life insurance can help with estate planning, so that you can leave behind a legacy for your loved ones or a bequest for charitable causes close to your heart. 

Then there are end-of-life expenses to consider – life insurance can be put towards funeral costs and finalising any outstanding debts you may have. 

Planning for retirement and beyond

In retirement, life insurance can come in handy in several scenarios:

• Pension supplement: Supporting your spouse if you were no longer around and their pension was the only cashflow available to them.
• Medical emergencies: Covering unexpected health-related expenses for yourself, if you’re diagnosed with a terminal illness (with less than 12 months to live).
• Inheritance planning: Providing for your grandchildren in your will or contributing to your family’s future financial stability.

Look to the future

One way to protect your loved ones is to start considering planning for the future today. You can learn more about Guardian Life Insurance and what’s involved by getting a quote online today.