Life Insurance for New Parents
Insurance for whatever stage of life you're at
Life insurance guide for new parents
Whether you're expecting your first child, adopting, or growing your family even more, the arrival of a new baby brings added financial responsibilities.
Factoring a baby into your budget isn't easy. There are hospital visits, nappies, clothes, and child care to consider. Plus, temporarily living on a reduced income can make this even more testing.
Imagine if you had to live on a reduced income permanently – how would your family cope if you or your partner became terminally ill, disabled or even passed away? What if an accident struck and you were seriously injured? Finances aside, who would look after the kids?
What types of cover might suit my new family?
If you've decided life insurance is the right way to look out for your family financially, it can still seem a bit daunting working out which type of cover is right for you. Broadly speaking, there are two things you might want to initially consider:
The money matters your family will need to keep on top of, if something happens to you or your partner which dramatically reduces your income.
Whether you want cover to help provide for your family after you've passed away, or a policy designed for the shorter term – when injury stops you working.
You might leave your partner financially vulnerable
If you've decided to have a baby, the thought of not being around to watch your child grow is a horrible one. But having cover in place to help provide for your new family if the worst should happen can help you feel more relaxed.
If you have a Life Protect policy, your family may be eligible to receive a lump sum in the event of your death or if you're diagnosed with a terminal illness.
The lump sum payable under the policy in the event of your death or diagnosed terminal illness, could go towards:
- Funeral and other expenses thanks to the Funeral Advancement Benefit of up to $10,000
- Everyday expenses, like utility bills and groceries
- Your child's future education
- Mortgage or rent payments to help keep your loved ones in the family home
- Keeping the family car running and pay for other travel costs
- Credit cards or other loans
An illness or injury could prevent you from working
If sickness or injury means you can't work, this type of life insurance is designed to pay a monthly benefit to replace your lost income. It can help you stay in control financially until you’re back on your feet, helping keep things as normal as possible for your new little one, and the rest of your family.
The monthly benefits can cover up to 75% of your income, up to $10,000, and could be used to help with the following common costs:
- Mortgage or rent payments
- Everyday expenses like travel and groceries
- Bills – including utilities, telephone, internet and credit cards
- Personal loan repayments
- Childcare or school fees
All this and more, without having to rely on your partner’s income or your savings alone to help keep your family afloat.
Accidental Injury Insurance
You could get injured in an accident
Accidental injury insurance can be an affordable option that can help ease the burden of paying for the treatment of a serious injury. It can provide a lump sum pay out if you suffer certain serious injuries in an accident, anytime, anywhere. Receive up to $100,000 depending on the package chosen and injury.
The pay out for a successful claim could be used to:
- Help you concentrate on getting better, and focus less on your finances so you could spend more time with your kids
- Help pay for any medical costs or hospital treatments caused by your injury
- Help cover everyday expenses like petrol, travel costs and groceries
- Help you keep up with your bills
Unsure how much you need?
Are you confident that any existing cover you have, or the life insurance provided by your super, is enough to support you and your partner if something were to happen to reduce your income? If you're not sure, use our life insurance calculator to help you work out an estimate of the cover you might need.
Life Insurance through Superannuation – Is It Enough?
What is Life Insurance through superannuation? And how do you know if life insurance through superannuation is enough? Samantha Rush explains the basics of life insurance in these two videos.
What is Life Insurance through superannuation?
This means paying for Life Insurance with the money that sits in your super fund. You’ll generally get the default level of cover your super fund offers. You can choose this option through your employer or when you set up your super fund. As long as your employer, or you, contributes super to your account regularly, you will have some level of Life Insurance cover.
What am I covered for under Life Insurance through superannuation?
Life Insurance through a super fund usually includes one or more of three different kinds of cover:
- Death cover, which pays a lump sum or an income stream benefit amount to your beneficiaries if you die.
- Total and permanent disability cover, which pays you a benefit amount if you’re seriously disabled and not likely to work again because of this.
- Income protection to cover loss of income over a certain period if you can't work because of a temporary illness or injury.
How do I work out how much Life Insurance I need?
To get an idea of how much insurance cover you need, start by tallying up the total cost of the things you pay for that your loved ones would still need if you’re no longer earning an income.
This might be things like your bills, debts, mortgage, and personal loans. The total sum of these gives you an idea of the amount of cover your loved ones would need to continue to meet your financial responsibilities in your absence.
Try our life insurance calculator online now.
What’s the difference between my super Life Insurance policy and a policy through an insurer?
Life Insurance through an insurance provider is different in a few ways. Firstly, there can be more flexibility around the kind and level of cover available, meaning the amount you pay can be adjusted to increase or decrease the level of cover. Also, benefit amount payable to you or your family are usually delivered quicker by an insurance provider because they are passed directly to the beneficiaries rather than to a super funds trustee.
Is Life Insurance through super enough?
When thinking about Life Insurance, consider what you need cover for, the premium you can afford, and the benefit or limits you and your loved ones require to keep the lifestyle that you want. For example, if someone has an underlying medical condition they might opt for Life Insurance through an insurance company to make sure they’re covered in particular circumstances. On the other hand, another person might only need a benefit amount if they’re injured at work and can no longer do that job.
Try our life insurance calculator online now.
Life Stages & Events
Whatever stage of life you're at, Suncorp could help you plan for life's unexpected turns. See what some people in your stage of life buy to help protect themselves financially and why.
Need to talk?
Our friendly team of insurance specialists at our Australian based call centre can answer all your questions. Alternatively, if you feel your financial requirements are more complex and you require financial advice, you can turn to a Suncorp Financial Planner for help in assessing your risk and working out the cover that could meet your needs.