Is Life Insurance a Good Investment?

While many adults have already purchased life insurance because of the incredible benefits that it can provide, many others have not yet explored coverage options or made a purchase.
The reality is that some people simply do not see the need for it, or they may not believe that the regular premium expense is worth the benefits that it can provide. Not everyone needs to or should buy life insurance, but it is a sound investment for many people.
Life Insurance a Good Investment
When you understand the many reasons why others buy life insurance, you may be able to determine if this is an investment that you should purchase.

Understand the Types of Coverage Available

Before learning about the benefits of life insurance, you need to understand more about the two primary types of coverage. The first type of life insurance is term coverage, and common term lengths range between 15 and 30 years. At the end of the term length, the coverage ceases.
The second type of coverage is universal or cash value life insurance. This type of insurance offers the same death benefits as term life insurance, and it also can accumulate cash value over time. Typically, universal or cash value life insurance has a higher premium amount than term coverage, and the coverage does not have a fixed term length. Coverage can extend for the insured’s entire life.

Examine the Benefits of Life Insurance

Both of the primary types of life insurance provide beneficiaries with death benefits. Death benefits could help survivors avoid having to take out an emergency loan to pay for funeral expenses and other related end-of-life expenses. In addition, the death benefits can also be used to supplement income that the deceased provided to the family in his or her living years. Death benefits are commonly used to pay off debts, to pay for a surviving child’s college education and more.
A universal or cash value policy offers these same benefits, but it also has the additional benefit of being a true cash asset. You may be able to borrow against the cash value or even to retire the policy when it is no longer needed to access the cash value component.

Determine Your Coverage Needs

Because not every individual may need to buy coverage, it is important to determine what your unique needs are. Consider if you have survivors who may be negatively impacted on a financial level by your death. These may be individuals who are financially dependent on you in various ways. You may also consider if you have debts or if a surviving spouse may have retirement plans thwarted if you pass away.
On the other hand, some people are financially independent. They may have minimal debts, if any. They may also not have dependents. In these situations, life insurance may not be necessary.
If you plan to purchase life insurance, spend time learning more about the differences between these two types of coverage. Then, speak with a life insurance representative to estimate the amount of coverage that you need. Some people will purchase smaller universal and term policies rather than a single large policy to take advantage of the benefits that both insurance types can provide. You also need to determine the term length that is most ideal for your needs if you plan to buy term coverage.

Considering Life Insurance for a Child? Here’s What You Need to Know

If you have young children, you already know how important it is to purchase life insurance for yourself and your spouse in case the worst should happen and your family needs to replace your income and pay off your debts. But have you ever considered insuring your children’s lives, as well? Of course, chances are your children will all grow up healthy and happy, but the responsible thing to do is to take out at least enough life insurance to cover their final expenses.

You may be able to add your children to your existing life insurance policy, or buy separate policies for each of them. Buying separate whole life policies for your children allows them to lock in insurability for later in life, even if they should develop a chronic illness in adulthood. A permanent life insurance policy on a child also allows you to accumulate cash value in the policy, which can provide extra cash for your family or your child later on.

Why You Should Insure Your Child

Most people think of life insurance as a way to replace lost income in the event that a provider passes away. However, life insurance can also offer cash to pay for final expenses and other costs that a family might incur due to loss. The cost of a funeral alone can easily surpass $10,000, and that’s the kind of money most families don’t have just lying around.

Of course, expenses don’t end there. If you lose a child, you’re not going to want to go back to work straight away. Can you afford to take time off to grieve? How much bereavement time does your employer offer? Can coworkers donate their own sick days and vacation time to a bereaved coworker? A large death benefit could buy you and your spouse the ability to return to work on your own schedule.

You, your spouse, and your other children may also need counseling to come to terms with the loss. Does your health insurance pay for mental health care? What if your child leaves behind large medical bills not covered by insurance? Life insurance can cover these costs.

In most cases, of course, you won’t need to collect the death benefit for your child. That doesn’t mean a life insurance policy can’t still be worthwhile. Whole life and other permanent life insurance policies accrue cash value that could help you accumulate wealth; you or your child could borrow against the policy down the road. Buying life insurance on your child also protects his or her insurability in adulthood, even if he or she develops a medical condition that would normally render a person uninsurable.

Make the Most of Your Child’s Life Insurance

Leibel Insurance Group can help you choose the best life insurance policy for your child. It’s usually a good idea to buy the biggest policy you can afford right out of the gate; even if it seems like overkill, a large permanent life insurance policy maximizes your potential to accrue cash value, and protects the death benefit against inflation. Remember, your child might hold this policy for several decades, so do what you can to protect the purchasing power of the benefit. Not to mention, your child’s life insurance needs will increase as he or she grows older and has children of his or her own.

There are typically three parties involved in a life insurance policy — the owner, the beneficiary, and the insured. When you buy a policy for a minor child, the child will be the insured, and you, the parent, will most likely be both the owner and the beneficiary. However, some parents choose to sign over ownership of a life insurance policy when the child turns 18. Your child can then surrender the life insurance policy for its cash value and use the money to pay for college, put a down-payment on a home, or backpack across Europe.

However, you may want to wait a little longer before handing over the life insurance. A life insurance policy, especially one that has accrued $20,000 or $30,000 in cash value, can make a great wedding gift or gift for the birth of a first baby. Your older, more mature child will be more likely to understand the real value of what you’ve given him or her, and may choose to keep the life insurance policy to give his or her own family added financial protection.

It may not seem necessary to insure the life of a child, but loss of income isn’t the only financial hardship that can accompany an untimely passing. Taking out a life insurance policy on your child enables you to cover final expenses, medical bills, and other costs. But even if you never need to pay those bills, a whole life policy can make a great gift for your adult child one day.

10 Benefits Of Life Insurance

You can’t plan for every eventuality in life, but you can definitely try! Our financial state isn’t something we have to worry about in life – it’s also a concern in death.

In order to protect our families and loved ones from damage, a life insurance policy is all but a requirement. If you’re still on the fence, here are several reasons why taking the plunge would be a good idea.

#1 You can make a charitable donation

If you have continually supported a particular charity throughout your life, that doesn’t have to stop upon your death. In fact, it can carry on as before! Life insurance allows you to donate a chunk of your savings to any given charity.

#2 It’s generally a cheap monthly payment

Life insurance isn’t really that cheap, either. There are a ton of places to get quotes, such as, and you’ll be surprised at the cost. Plus, unlike some savings accounts, there are no additional fees for saving.

#3 Protects anyone who relies on you financially

Whether you’re a single parent or a nuclear family, there is bound to be someone who depends on you financially. Life insurance helps them stay on their feet if you pass away suddenly, and lets them carry on their lives in as normal a fashion as possible.

#4 Pay off the mortgage

Mortgages aren’t cheap – that goes without saying. If you still have an unpaid mortgage at the time of your death, your life insurance policy prevents your family from having to deal with it alone. They will be stress free, and your policy will have paid off.

#5 Covers funeral costs

Funerals aren’t cheap! Far from it. Your family may want to give you a proper, hearty send-off, but financial limitations can hold this back. Luckily, you invested in a life insurance policy, and the hefty sum that it takes to produce a decent funeral can be covered.

#6 Tax free benefits

Your personal life insurance policy provides a tax free sum to your chosen beneficiaries upon your death. This is unlike other savings methods that may charge a certain amount of tax.

#7 Shields you from rising healthcare costs

The costs of healthcare, around the globe, are on the rise. If you become ill and you aren’t covered, you may struggle to get help financially. However, if you have a life insurance policy in place, you don’t have to fret; you’ll be covered!

#8 Retirement planning

The worst thing about retirement is how quickly it halts your income. It can be tough to go from a full salary to a small savings pot, but life insurance can give you that boost you may need. There’s plenty of information on how to plan for a good retirement, such as, and every source agrees on this one thing, life insurance helps.

#9 Your family won’t have to sell the home if you die

If you die without life insurance, your family and loved ones may have to sell the family home to make ends meet. They might even have to sell other valuable items, such as family heirlooms. Life insurance protects your family from having to part with things they’d rather keep.

#10 Clear your debts

Whether it’s credit card debt or payday loans, your loved ones won’t have to worry about paying them themselves. Your policy will more than make up for any debts that you may have incurred.

Life settlement transaction may be offered if a person is over the age of 60

A life settlement company purchases or buys an outside party’s life insurance policy that they no longer need, want, or can financially afford. Life settlement policies are defined as requests, sales, transfers or other assignments of an insurance policy to another outside source or party. For life settlements, the terms are legally understood or the policy has an insurance prerequisite that a selling policy holder/owner be healthy at the time of the sale. The owner can may not be diseased or have any other fatal medical conditions.

In this day and time, there are a variety of reasons that a life insurance policy owner may consider selling their life insurance policy and they may include:

  • The insurance owner of the acquired policy may not want their policy any longer;
  • The insurance policy owner may not need their policy anymore;
  • The insurance policy holder/owner may wish to purchase another type of life insurance policy;
  • The insurance premiums may no longer be in the insurance owner’s budget or the premium payments just may not be financially affordable for them now

A policy holder may have learned this financial information about settling their life insurance policies from a friend or family member, an estate planning presentation, an attorney, an insurance broker, or their financial advisor or planner.

Key individuals, judicial rulings, and numerous other events were some of the main topics that started the initial life settlement market.
Life insurance policies were considered private property of the individual policy owner by Justice Oliver Wendell Holmes of the U.S. Supreme Court. This court ruling was handed down in 1911 in the case of Grigsby v. Russell, 222 U.S. 149.
Justice Holmes remarked in his legal opinion that a policy of life insurance may be transferred at the discretion of its owner or holder to any person that they chose to have or leave it to unless restrictions were implemented by the insurance carrier.
Life insurance policies can be transferable property if the person includes specific legal rights that include:

  • The beneficiary name located in the insurance policy itself;
  • The policy holder may change the designation of the beneficiary, unless the insurance company puts restrictions in the policy;
  • The owner of the policy may assign the policy for loan collateral;
  • The policy owner may borrow against the insurance policy;
  • The policy owner may sell the insurance policy to another party

A life settlement transaction may resemble a viatical settlement but the life settlement’s policy holder cannot have any fatal diseases of any sort during the sell to the buyer.

Life settlement transaction may be through several entities. Some examples may include:

  • Providers;
  • Brokers;
  • Investors

So if an individual has a life insurance policy that they no longer want, need or desire to have for any reason, perhaps a life settlement transaction may be good for both of the parties.

Life Insurance: Your Baby is Royalty, too!

The media has gone baby crazy after the recent birth of Britain’s Prince William and Kate Middleton’s baby boy christened Prince George, or as the media has dubbed him – the royal baby.  Let’s be honest though, regardless of who the baby is born to, we all like to treat our children like princes and princesses.

The arrival of a child is one the most magical events in people’s lives, and as soon as you gaze down at that tiny, squishy face for the first time you realize that you’re not just living life for yourself anymore, you have a new purpose in life and you’ll do anything to keep that baby happy forever. Parenthood brings out an inherent sense of selflessness and devotion from within us, along with a fierce protective nature we didn’t know could exist at such levels of intensity.

While every parent wants the very best for their child, most parents, especially those who have given birth to their first child, don’t really know where to start, and more crucially how soon they have to start. Remember, from the word go and up until the next couple of decades at the very least that child will look to you for protection, guidance and safety. Even the greatest of affection and the noblest intentions however can be thwarted due to ill judgment and a lack of knowledge.

So for those who are planning on having a baby in the future or have recently given birth to a child, you must know how to protect your child’s future, and how that means securing your own future more than anything else.

Life insurance for the child

First things first, should you buy a separate insurance policy for your newborn? The answer depends on how much disposable income you have. While the premiums are low, so is the payout, so don’t look for a bumper swell in your kid’s coffers in the future, but if you do invest in such a policy, the benefits could account for a decent base for the kid’s college fund. Also, if you get a permanent life insurance policy with a guaranteed insurability rider, which will ensure you child has a policy at the best possible rates for his or her entire life, regardless of any medical complications they may pick up in the future. When you child gets older he or she can also borrow money on the policy, which means they have a convenient method to access loans in case they need any.

Life insurance for the parents

Above all though, make sure you and the mother have comprehensive life insurance policies taken out on yourselves, because nothing will secure your child’s future as much as this. Not only will it provide your child with security in case of something unfortunate happens to his or her parents, but also, a term based life insurance policy will provide a good chunk of capital in the future, and as such is a prudent form of investment. For example, a long term insurance of 20 odd years taken out when the baby is a newly born means you can provide him or her with a very stable base when they begin their lives as adults and professionals. Furthermore, depending on the timing of the policy, you can pay for the child’s college or better secure your post retirement future if you’ve spent your savings on the child’s education, so it’s a win-win either way.

The younger and healthier you are, they cheaper the premiums, so do the math and get a policy as soon as conceivable. If you are reading this only because you plan to have babies in the future, don’t even wait till the baby is born, get life insurance for yourself and your wife before she gets pregnant, because complications during pregnancy can cause an increase in premium rates and extreme cases even outright refusal for a time period. Most times though the complications don’t cause any permanent damage though, which means as long the mom is healthy; she can apply for an insurance policy at a later date, typically six months after the pregnancy.

In today’s day and age, a life insurance policy is not only prudent financial planning, but an absolute necessity. This is only made more apparent when you have a new life in your house that is totally dependent on you. Find the best rates for life insurance policies when investing though, and guard against unscrupulous agents or other sources that are likely to push you towards one particular insurer based on their commissions. Assess all your options before investing use an online tool such as AccuQuote, IntelliQuote or any such website. Look for one that provides the most sensible and reliable advice, and has a wide array of big insurance brands under its umbrella, because this is a good indicator that the site will not favor one of its associated brands over another, and will provide you with the fairest offers possible.  

Author bio: Frank Mitchell has worked as a life insurance agent for 10 years.  After an accident in 2011 that kept him at home for more than a year, Frank started offering advice on forums and other social media networks. He now works as financial advisor and in his spare time writes articles on subjects he is passionate about. On the weekends, you’ll find Frank dirt biking.

Are You Too Old To For Life Insurance?

If you are reaching your retirement years, you may be re-evaluating your outgoings. You really don’t want to be spending money on something you don’t need, so what about life insurance? Will you really need life insurance after you have retired, once you no longer have the responsibilities you once had?

On the other hand, maybe you have never had life insurance, and you are wondering if it’s a good idea to look into it now. To help you work out whether you need life insurance as a senior, take a look at the following questions.

Who relies on you?

One of the advantages of life insurance is that it can help to provide for loved ones you leave behind. If you have a partner who relies on you financially, life insurance could help to provide for them financially when you’re gone.

The same applies if you have young children in your care. They may not be your children, but they could be your grandchildren, or other family members you take care of. Or perhaps you have grown children with special needs. Life insurance could help to provide for them financially if something were to happen to you. Find out more about GIO funeral insurance at their official site & find out whats in it for you.

Do you have a mortgage?

Most people aim to have their mortgage paid off by the time they retire, however, these things don’t always go to plan. If you have a mortgage that still needs to be paid off, or perhaps you have a mortgage on an investment property, life insurance could help pay it off.

If you have any large debts, such as large personal loans or car loans, life insurance could help to cover these too.

Do you have your own business?

Even if you have reached retirement age, that doesn’t necessarily mean you are ready to retire. If your family relies on the income from your job, it’s important to think about how they would cope financially if that paycheck was no longer coming in.

If you run your own business, you have a responsibility to your employees and your business partners. Life insurance can also help to cover business-related costs if you choose the right policy.

Do you have money set aside for your funeral?

While it’s not something most people like to think about, funerals are unavoidable, and generally quite expensive. If you don’t have money set aside to pay for your funeral, your loved ones will have to cover the costs.

Life insurance can cover the costs associated with funeral arrangements, or alternatively, you could invest in funeral insurance, which offers specific cover for funerals.

Do you want to leave an inheritance?

Life insurance can offer a way to leave money to friends and family without the same tax implications of leaving them an inheritance in your will. Speak to a professional about this if you want to know more, as taxes vary according to circumstance and location.

If any of these situations apply to you, perhaps life insurance is for you. If you want to invest in life insurance, compare all your options, speak to your provider if you have questions, and read the terms and conditions in full.

No Medical Life Insurance: Insurance Without the Examination

For individuals from age 20 to 85, life insurance coverage is available without a medical examination.  No medical life insurance is a legal contract which does not exclude or implement limitations based on the requirement of a medical examination.

Life insurance is a contract held between the insured policy holder and the insurer, where the policy holder pays a premium, either as a regular payment or as a lump sum, on the guarantee that the insurer will pay the designated beneficiary a sum of money upon the death of the insured individual.  The sum of money, otherwise known as the “benefits”, may also be triggered by the critical or terminal illness of the policy holder, and may also include funeral coverage.  No medical life insurance is a life insurance policy that is available to individuals without need of a medical examination.

Records of insurance date back to as early as 1750 BC in Babylon and 2000 BC in China.  It can be traced back to ancient Rome, where “burial clubs” covered the cost of their members’ funeral expenses and provided financial contributions for survivors.  Modern life insurance, however, began in England in the 17th century as a means of providing financial security to traders and their families.  Life insurance was first sold in the US in the late 1760’s.  Several organizations were formed, including the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers by the Presbyterian Synods, and a similar fund created by the Episcopalian priests, in Philadelphia and New York for the relief of widows and their families.  Prior to the American Civil War and the Emancipation Proclamation, many insurance companies even insured the lives of slaves for their owners.  Currently, there are multiple forms of life insurance available, including no medical life insurance.

The life insurance company calculates policy prices with the intent to fund claims, administrative costs, and to make a profit.  The cost of the policy holder’s premium is determined using the mortality tables, tables based on probability and statistics that show expected annual mortality rates.  These mortality rates can be used to derive life expectancy, and provide a baseline for cost of the insurance.  Insurance companies consider three main variables within the mortality table: age, gender, and use of tobacco; however, these mortality tables are often used in conjunction with the health and family history of the applicant to determine premium rates and insurability.  Insurance companies alone determine the insurability of the applicant, and are able to decline or increase the premiums of policies based on the results of the medical examination.  No medical life insurance, however, is an insurance opportunities that is available for individuals without the requirement of a medical examination. is an initiative of independent insurance expert Tamara Humphries and LSM Insurance. They have unique expertise in finding the best possible rate for individuals with no medical life insurance. Their team has access to and uses the most up-to-date financial planning software from their insurance carrier partners. They focus on preparing the best possible package for each client’s specific situation and needs. For more information, visit or call 1-866-899-4849.

Life & Disability Insurance – If Superheroes Could Use It, Why Not You?

Growing up, at one point in time or another, we’ve all wanted to be superheroes haven’t we? We won’t go into anything controversial like which superhero is the best or who has the most awesome powers, but through the medium of comic books, cartoons, TV series’, and movies we’ve come across a wide range of fictional characters with super awesome powers that the kid inside has always wished to attain. While we all aspire to have super awesome powers and always get the beautiful girl (or be the totally amazing female superhero, for all the ladies out there) we don’t stop to think about how dangerous and difficult life would be because well we’d be superheroes so nothing can deter from that.

Think about it though, superheroes live insanely difficult lives facing constant danger and fighting crime without pay! Doesn’t sound like much fun, sure some of them can fly and stuff by after a while you’ll get bored and want to take a break from the pressures of such a job right? What if you as a super hero had insurance though? That would make life a lot easier wouldn’t it? I know you’re wondering how that would work, why would superheroes need insurance? Let me explain with a few examples.

Why even superheroes could benefit from insurance.

  • Spiderman/Peter Parker. So your friendly neighborhood spidey, bitten by a radioactive spider, has a pretty cool web-slinger and unbelievable reflexes. He isn’t invincible by any stretch of imagination, and has a low paying job as a photographer with the Daily Bugle. He has Aunt May, and later Mary-Jane as dependents, so he would most definitely need a life insurance policy, and considering he’s in constant danger of getting hurt and thus missing office long term, a comprehensive disability insurance wouldn’t go amiss either.
  • Professor X/Charles Xavier. The leader of all X-men, Professor X loses all ability to use the bottom half of his body after a stray bullet deflected by magneto hits him in the spine (going purely by the movie here for all the comic book nerds out there), so disability insurance is a no-brainer. Also since he dies and leaves behind a whole school of mutants as dependents, setting up a life insurance policy would have been a good idea too.
  • Mr. Fantastic/Richard Reed. As a physicist who conducts dangerous experiments in outer space, and has a wife in Susan Storm a.k.a The Invisible Woman as a dependent, it’s obvious why Mr. Fantastic would need life and disability insurance, not only is his superhero job dangerous, but so is his day job!
  • Iron Man/Tony Stark. The epitome of cool, billionaire Tony Stark dons a metal suit to fight crime and save the earth in his Iron man avatar. Since he runs a multi-million dollar empire in the form of Stark Industries, and doesn’t even have any superpowers that make him invincible or even more resistant to damage, he’s another obvious candidate for both disability and life insurance, after all how would Stark Enterprises run if he got injured somehow?
  • Superman/Clark Kent. I know what you’re thinking; Superman is like a superhero with cheat-codes, laser eyes, iron chest, ability to fly, impenetrable skin, nigh on invincible. Don’t forget though that his Kryptonite is er…Kryptonite. Some punk roaming around with a piece of shiny space-rock can turn our superhero into a weakling. His job as a journalist for The Daily Planet puts food on the table, and if he’s cornered with the aforementioned space rock by arch nemesis Lex Luthor, expect him to take a long leave to recover, meaning no pay unless he has a comprehensive disability insurance policy.

Insurance is decided based on how much of a risk factor you are, so these guys will not only need policies but will also have to find the best rates possible. Expect them to look around on the internet through insurance quote websites such as SelectQuote, AccuQuote, and IntelliQuote, or others like them, because even superheroes want the best deal. We ordinary folk, however, don’t even have superpowers so if the superheroes mentioned above would find some benefit in disability and life insurance, we most definitely could! So think smart and don’t assume you’re as invincible as a superhero, because they too have their vulnerabilities, and so do you. So protect your family and your livelihood, invest in insurance as soon as possible.

Author Bio: Frank Mitchell has worked as a life insurance agent for 10 years. After an accident in 2011 that kept him at home for more than a year, Frank started offering advice on forums and other social media networks. He now works as financial advisor and in his spare time writes articles on subjects he is passionate about. On the weekends, you’ll find Frank dirt biking.

Is Life Insurance Without A Medical Exam Right For You?

There are a number of reasons why many people do not want to go through a medical examination when purchasing life insurance. Many people can find the examination too invasive and others may not be able to find the time to go to a doctor’s office due to a very busy schedule. As well, a lot of people get anxious about needles for blood collection. If you are one of the many Canadians who do not want to get a medical exam for life insurance, there is a great life insurance option available – No Medical Life Insurance, or life insurance without a medical exam.

No Medical Life Insurance Definition

Insurance without a medical exam is the simplest life insurance on the insurance market to cover final expenses and other needs. No medical life insurance is life insurance that you buy which does not require a medical exam or blood test. This type of insurance is designed for people who have a hard time obtaining life insurance due to such factors as age and health condition, as well as for people who, for whatever reason, do not want to get a medical exam.

Health History

Although no medical life insurance policies do not require a medical exam, your health history will still be relevant to your insurance application process There will often be some questions to answer such as: age, location, history, past health, occupation, gender, etc. Applying online involves a filling out a simple and brief form.

While there are insurance providers that price males and females and smokers and non-smokers at the same rate, there are insurance providers that distinguish between male and female rates and between smoker and non-smoker rates. If you are a non-smoker, it is important to inform the insurance company to make sure you do not pay higher premiums.

No Exam Life Insurance Benefits

One important benefit of getting no exam life insurance is how fast you can get approved for a policy. This is because you avoid the delays resulting from scheduling medical exam and for the medical documents to be submitted. Sometimes, it can be as little as 10 minutes for approval or just a couple of days. As well, you can pay your premiums electronically. And in case of accidental death, benefits can often increase in a range of 2 times to 5 times.

What Type Of Policy Is Best For You?

With no medical life insurance, you will receive continuous coverage for life. You just have to maintain your premium payments. You can chose from various types of no exam policies with different levels of coverage. Guaranteed acceptance life insurance is designed for people up to the age of 80 years. Coverage amounts can vary from – $3,500, $5,000, $10,000, $15,000, $20,000 and $25,000.

No Medical Whole Life Insurance plans provide coverage for your entire life. Whole life insurance does not expire or change at various points in your life. No Medical Term Life Insurance policies are the least expensive of the no medical coverage’s and lasts for a specified period of time. When comparing no medical exam life insurance policies, you should compare features, premiums, and the required medical questions.

No Medical Life Insurance – Peace Of Mind

If you have been’ turned down before, you are hard to insure, you are overweight, you smoke, or you don’t want to get a medical exam, life insurance without a medical exam may be right for you. At It is a great way to protect your family members and pay for funeral expenses. It does not matter what your current state of health is, or if you have a medical condition, you will not be turned down.

Partners in Financial Security: Life Insurance and Superannuation

Superannuation is Australia’s signature retirement program. It helps you achieve a measure of financial security in your old age by allowing you to make contributions to a long-term savings plan – alongside your employer – for your future retirement. One of the best options available inside of a super plan is the ability to purchase life insurance. This is done through a “salary sacrifice” program with your employer, and can add a substantial benefit to those you leave behind.

Choosing Life Insurance

Life insurance might be the first thing you think about inside of your superannuation plan. However, it’s a great way to provide for your family when you can’t be there for them. Life is unpredictable. No one wants to think about their death – but it happens. The reality of it is that you could be snatched from your family at any moment.

Life insurance provides access to funds almost immediately. Those funds can be used to replace income that your family is counting on to pay bills and other future expenses like a college education for your children.

Since widows and orphan benefits are very limited from the Australian government, a life insurance policy is almost a necessity if you want your family to have a good life after you’re gone.

Tax Deductibility

When you buy life insurance inside your super plan, you can deduct the premiums you pay. That means you can buy more life insurance, since none of the money used to pay premiums comes from after-tax dollars.

More premiums means a bigger death benefit. Another way to put it is that you’re effectively getting cheaper insurance – by virtue of the fact that there’s no drag on your income used to pay premiums.

Self-Employed Life Insurance Purchases

If you work for yourself, you’re in a precarious position. You need life insurance for your family, but you might also need it for business purposes. Let’s say you have business partners. If one of you dies, then the other remaining partners needs a way to buy out the deceased’s share of the company.

In Australia, the business will go to the deceased’s heirs. A special contract, however, can be drawn up in advance to give you first rights to purchase his share of the company. To fund the purchase, you usually need a life insurance policy – as this provides immediate access to cash without using the company’s funds.

Because you receive a large death benefit amount in exchange for a small amount of premium (relative to the death benefit), it’s like buying a future savings at a discount.


Low Income Individuals

If your income is below a certain amount, then the Australian government gives you an additional incentive to contribute to your super fund. Specifically, you receive $1,000 as a “bonus” to help you contribute something to your future savings. This money could be used to pay for life insurance. With $1,000, it could buy you a substantial policy. The government maintains information about the co-contribution benefit at

Helen Akin is a retired secretary for a small insurance company. She now spends her days blogging on the Internet, mainly insurance sites. Visit this page to learn lots more about life insurance and finance.