If something were to happen to you, how would your family cope financially? Would they be able to pay the mortgage, keep up with daily expenses and continue to live the lifestyle they were accustomed to? At this emotionally charged time, the last thing they need is financial pressure adding extra strain, which is why it’s important to have life insurance to protect the things you've worked hard to create.

But what type of life cover do you need and how much cover is enough? A financial adviser can help you answer these questions and ensure your family and your lifestyles are protected financially in case things don’t go according to plan.

Term Life Insurance

Term life insurance provides financial protection to your beneficiaries, your family and their financial future by paying a lump sum in the event of your death or diagnosis of a terminal illness. This is the reason that this type of insurance is commonly known as life insurance. The insurer will pay a pre-agreed benefit to your estate or to your nominated beneficiary upon your death by either accident or illness. If you have a terminal illness it will pay the benefit before your death – though your life expectancy must usually be determined to be less than 12 months.

Lots of us have term life insurance in our super funds where we work, and this can be a great place to hold insurance. Do you know if this cover would be enough to provide for your dependents in the event of your early death and the possible tax consequences? Insurance can be a tricky area with lots of options to consider so talk to a financial adviser to protect your family today.