Jun 11, 2024  | Tags: insurance, Life Insurance

Our insights

Life insurance is a subject many people find difficult to talk about.

That’s because it usually involves a financial payout at the time of a policy holder’s death or diagnosis of a serious illness.

But however unpleasant the thought, the funds are there to make an enormous difference to those left behind.

Moreover, without life insurance, many face the prospect of considerable grief compounded by financial hardship.

It is a misnomer that life insurance is only useful for families with dependents or not needed by high-income earners.

Life insurance is a valuable asset for everyone at any stage of life.

Young, single people

Life insurance is generally the last thing on the mind of young, single types with their whole lives ahead of them.

But none of us are bulletproof.

Consider the cost of leaving unpaid loans and expenses to family members in the event the worst occurred.

The good news is, life insurance premiums are normally considerably cheaper for young people.

This is particularly true if you take out a policy using stepped premiums.

Stepped premiums increase each year, hopefully as you become more successful and begin to accumulate wealth.

In the short term, they are cheaper than level premiums which may increase marginally over time but are much higher at the beginning of a policy than stepped premiums.

If you are not yet ready to consider life insurance, there are other types of insurance you should think about to at least protect your income in the event you fall ill or are injured.

These are:

- Income protection

- Trauma insurance

- TPD (Total and Permanent Disability) insurance

Young couples

Young couples without children are in the position to build their wealth quite quickly.

But that wealth could quickly be eroded if something was to happen to one of them.

Would the partner you left behind be able to afford to continue to service your mortgage and remain in your home?

If you haven’t already done it, entering a serious relationship or getting married is the ideal time to take out life insurance.

If you already have it, it is also the perfect time to review your policy and ensure it still satisfies your new circumstances.

And remember, a life insurance policy should be considered by both partners in a couple, even if one of them only works a little.

Young families

When children are brought into the equation, life insurance becomes a necessity.

It is essential to protect the long-term financial security of your dependents in the event of an untimely death.

Again, it is important both partners have a policy.

Imagine how a young father would struggle to cope, becoming the sole breadwinner while having to look after young children.

Or worse, how a young mother would fare, needing to find mortgage and childcare payments, having lost a significant portion of the family income.

The prospect of losing their house would loom large without the safety net of a life insurance policy.

Then there are school fees to consider.

That private education might have to be foregone.

There is a lot to lose.

Life insurance for high-income earners

Some high-income earners believe they don’t need life insurance.

This could not be further from the truth.

For them, life insurance is chiefly about wealth preservation.

Money is much easier to lose than it is to make.

Critically, life insurance provides a liquid asset to pay for unforeseen expenses when many other assets may be tied up in investments.

It also allows the discrete transfer of wealth between family members outside of the public domain of a will. 

Get advice today

Life insurance is vital for every stage of life.

It is also essential to review your policies whenever your circumstances change.

This encompasses marriage, children, separation, divorce and retirement.

Calder Wealth Management boasts an accomplished team of experienced financial planners and advisors who are experts when it comes to life insurance.

We can recommend a strategy and tailor a product designed specifically for your unique circumstance that will protect you and your family for the rest of your lives.

If required, we can also help you devise and build a wealth management plan or cast a discerning eye over whatever you have in place to ensure it satisfies your life goals.

At Calder, we pride ourselves on leading our clients into the future with structure, financial stability and confidence. 

Contact us today.

Written by Marisa Maiolo

The information contained in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Taxation, legal and other matters referred to on this website are of a general nature only and are based on Calder Wealth Management’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.

Calder specialises in wealth management with a focus on advice, investment, sustainability, insurance and finance.