Why choose life insurance?

Why is life insurance important?

Life insurance acts as a safety net to protect your family if the worst were to happen. Think of it as an investment in the future of the ones you love. Southern Cross Life insurance pays out a lump sum if you were to pass away – you can relax knowing your loved ones will be able to pay off the mortgage and any debts and that things like kids’ education could be taken care of.

Who may need life insurance?

Life insurance can be relevant to anyone at any stage of life – whether you are single, married, or a family. It all depends on your financial and debt situation, family or business obligations. If you’re a parent, you can ensure that the mortgage and your children can still be looked after. As a couple you might want to secure the retirement plan of your partner, or if you’re taking out your first mortgage this is often a key time to consider life insurance. And life changes constantly, so even a simple home renovation could be a good time to reassess how much life insurance cover you need.

What does life insurance provide for?

In the event of your death, your full cover amount can be paid out to your estate, which can help with things such as:

  • Covering funeral costs
  • Paying off the mortgage
  • Paying bills, credit cards and ongoing living expenses
  • Putting your children through tertiary study
  • Making sure your partner’s retirement needs are met

How much cover do you need?

The amount of cover you need depends on your own situation and any future financial obligations you may have. You may want to look at your income, what assets you have and how many years you might want to cover your loved ones for. A simple way to estimate how much cover you may need is:

Your current and future financial obligations, minus your partner's income, investments, savings and other life insurance, equals cover needed