What is life insurance?
Life insurance is just a broad term for several types of insurance bundled under the term life insurance. This includes:
- death cover
- total and permanent disability
- income protection insurance
- trauma insurance.
The purpose of these products is to make sure you’re protected in the event of illness or injury. This may be through a lump sum payment or through monthly payments while you can’t work.
Why do I need it when I’m young?
Illness and injury can happen at any time regardless of your age and whether you’re healthy or unwell. If something happens and you need a few months off work, this could cause serious financial strain.
If you’re under 25 you might not have huge amounts of debt, but you’ll still have ongoing expenses if you can’t work. If you have no income and extra medical expenses, you’ll need to be able to cover them – unless you have large amounts of savings sitting there and you are willing to spend it.
Do I have life insurance through my super?
Maybe. Did you contact your super fund recently and notify them you want to keep your insurance? There have been a lot of changes to superannuation legislation that mean if you have a balance of less than $6,000, are under 25, and you haven’t contributed to your super recently, you may not have insurance.
Go online or call your superannuation fund to make sure you still have that insurance. If you receive something in the mail from your fund, read it, because if your insurance has been cancelled you might need to opt in to keep your cover.
If I don’t have it now, when should I get it?
It’s a great idea to start thinking about it now. You don’t know when something might happen and you might need that cover. Getting it sooner rather than later means you have that peace of mind.
Can I apply for life insurance online?
Many super funds will enable you to add it quickly and easily online. It depends on your fund. You may need to call them. It can be a good idea to see a financial adviser for tailored advice that is best for your needs.
What’s the quickest way to get it?
Talk to your super fund. Ask what cover you already have in place as a default. If you have additional insurance needs, you can always add extra cover.
Find out more about life insurance with MetLife.
