Life insurance is designed to provide your family with financial security if you die or a diagnosed with a terminal illness. The lump sum that is paid out can give your family the security and freedom to make choices about their future.
While most people have some level of life insurance within their super fund, often it’s not enough. Likewise, insurance you bought years ago may no longer meet your needs, particularly if you’ve had major life changes such as a new job, new house or you’ve had a child.
How much life insurance you’ll need depends largely on your personal situation. In most cases you should select an amount of cover that can help your family:
- Pay off the mortgage and other debts
- Meet ongoing household expenses
- Pay for your children’s education
- Pay for extra child care or home services
- Cover the cost of funeral expenses
Suncorp Financial Advisers can work with you to determine an appropriate level of cover for your needs. And because we undertake an assessment of your current situation and medical history, the insurance you’ll receive is likely to be more relevant and cost-effective.
You can also access optional benefits including Total and Permanent Disablement (TPD) Cover and Child Cover.
Customer case study
Karen was a 38-year-old office manager, working for a manufacturing company. Two years earlier, she and her husband had divorced, leaving her with a mortgage and sole responsibility for the care of her 14-year-old son, Steven.
Now a single parent, Karen became more aware of her financial vulnerability. At the suggestion of a friend who had been in similar circumstances, she consulted a financial adviser.
The adviser carefully talked her through her various options and devised a plan to financially protect her and Steven, if something ever happened to her. Steven had always worked hard and done well at school, and she was particularly concerned to make sure that he would be able to afford to go on to university, if he wanted to.
She took out a life insurance and recovery policy for $500,000. She also took out an income protection policy, in case she ever became temporarily unable to work.
Less than two years later, Karen went home from work early one afternoon with a bad headache and the feeling she might be getting the flu. Later that day she lost consciousness and was rushed to hospital. She had suffered a brain haemorrhage, and died that evening without regaining consciousness.
Under her life policy, Karen had nominated Steven as her sole beneficiary. He received the $500,000 through a trust fund set up by the fund's solicitors.
Steven is now working hard for his HSC, with plans to become a doctor. Or perhaps a vet. Or maybe an architect.
Based on a real claim. Names have been changed. This is an example only. Grounds for making a claim and level of benefit can vary from one policy to another depending on their terms.