New year, new you, new life cover… Here’s when it’s time to talk about life insurance.
The new year for many of us can bring big changes.
Some of us may be packing up and moving into our first homes. Others may be travelling to a different country altogether.
Happy couples may be expecting a new addition to their families in the coming year, and hordes will be transitioning to a new career or simply changing companies.
What is it about a fresh calendar year that brings on such immense change?
Well, many of us see the New Year as a turning point in our lives; a chance to make headway in some of our long-term goals. Several studies show that we often feel more positive and confident about making a change in the New Year than we do at other times.
And it’s likely that more than one conversation you’ve had over the holiday period has revolved around New Year’s resolutions.
But the truth is that change happens all the time.
And no matter the time of year, it’s important to act mindfully as we enter some of life’s most defining chapters. It’s wise to take it slow and assess financial risk and reward.
Part of this involves looking at our personal insurance and making sure that during times of change both you and the people you love are protected.
So is something big about to happen in your life in 2019?
Only time will tell, but if you know you’re about to embark on any of the following adventures, this could be the perfect time to talk about life insurance…
Many young couples in their late 20s still rent together; a far cry from the quickly married homeowners of older generations. But as the property market continues to become ever more unpredictable and landlords increase the price of rent, the prospect of owning a home is still very much ‘the Australian Dream.’
If you’re about to buy your first home (or even another home as an investment property), your financial situation is likely to undergo drastic change. Suddenly you’ve got a mortgage hanging over your head and different bills and expenses.
If something were to happen to you, would your partner be able to foot the bill alone? And how could that negatively impact your kids? It’s not fun to think about, but it is important.
Many first home-buyers take out cover commensurate with their mortgage to ensure they’re not leaving their families with a hefty debt.
Not thinking of buying just yet? It pays to remember that if you’re moving to a place with a much higher rent, a similar change might need to be made to your life cover amount.
Often a career shakeup comes with a change in income. Most of the time, it’s a raise in the case of a promotion or moving to a new, better-paying employer. In these instances, your cover may need to be adjusted accordingly. If your family gets used to the lifestyle your new income can afford them, it could be a tough shock for them if anything ever happened to you and took that all away.
But sometimes, the opposite can come into play. You downsize, work fewer hours or agree to work for a smaller income for other kinds of perks instead. This means that you could be paying too high a premium for a level of cover you don’t even need.
That’s why no matter what direction your income is moving in, a change of jobs is always worth a look at life insurance.
Starting a family
There’s perhaps not a happier and more exciting time for a family than the birth of a child.
But it’s easy in the social buzz and thrilling feelings surrounding the event to forget about insurance. However, when it comes to life cover, this is potentially the most important time to get your affairs in order.
A new baby ramps up your financial costs considerably, and could also leave your partner more vulnerable to hardship in the event of misfortune. Compound that possibility with other mouths to feed, property debts and the cost of providing for your family’s lifestyle, medical needs and education, and you can see that you have a lot of responsibility on your hands.
When starting a family with somebody, it’s a good idea to have a conversation with them about how to best protect the family in the unexpected case of job loss, illness, or even death.
Your twilight years should be years of joy, of retiring from work and enjoying yourself, and spending time with your family or any hobbies and projects you’ve always dreamed of getting underway.
But with the golden times come the darker times too. Getting older can put us at a higher risk for injury, disease and other events that can potentially impact our families and communities.
If you’re an older person in relatively good health, and you still haven’t signed up for life insurance, this could be the year to finally protect your loved ones.
After all, no matter what life stage you’re in, life insurance is all about protecting what you have and what you love most—your family, your lifestyle, and all the effort you’ve put in over the years to get where you are today.
Remember that most life insurance policies have flexible premiums, payment plans, features and cover amounts so you can tailor a policy that works best for you.
Unsure where to start?
This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.