Mount Isa Insurance Consultants
ABN 23 010 695 913, Corp. Auth. Rep. No. 251017
76-78 Camooweal Street, Mount Isa QLD 4825
PO Box 2248, Mount Isa QLD 4825
Phone: (07) 4743 4555 Fax: (07) 4743 8798
E-mail:
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GR & SL Collins Pty Ltd T/A Mount Isa Insurance Consultants ABN 23 010 695 913, Corp. Auth. Rep. No. 251017 76-78 Camooweal Street, Mount Isa QLD 4825 PO Box 2248, Mount Isa QLD 4825 Phone: (07) 4743 4555 Fax: (07) 4743 8798 E-mail: |
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PERSONAL
Life A Corporate Authorised Representative of |
 Life InsuranceLife Insurance is an easy enough concept to grasp. If you are insured and you die, the life insurance office pays out an agreed sum. The difficulty comes with how much cover you should have. Many people with employer superannuation will have a minimum amount of life insurance as a "default" option. This might be between $60,000 and $100,000 and is designed to cover funeral expenses and relatively small debts, like perhaps the credit card and/or the car loan. But this would really only be sufficient if you are young, single, have no dependents and no mortgage. It would probably just make sure your death was not a financial strain on your next of kin. As people get older, married, buy a house and have children, the need for insurance increases exponentially. What happens if you died soon after you and your partner had bought a house? Not only are they grieving your death, but they could also be kicked out of their dream home if they can't keep up the mortgage. What if the deceased was the only working spouse? How will the kids be educated? What if the deceased was the primary homemaker? Who would look after the children, run the home and manage the household? At a minimum, financial planners recommend you take out enough insurance to cover your immediate debts. This includes the mortgage, credit cards, personal loans and funeral expenses. But that does not leave anything for your loved ones to replace your income or pay for nannies and housekeepers or plan for the future. Many people want to leave a real legacy - a sum that both clears the debts and can be invested to provide a significant passive income for their family. This could be any figure. But if, say, a sum of $750,000 was invested and earned 7 per cent, it would provide an income of approximately $52,500 a year - about the average weekly full time salary. For super fund members, life insurance can usually be taken out inside the fund. This means the premiums are paid from contributions and there is no direct cost to the member. However, as it is being paid from the contributions within your fund, it will reduce your eventual super payout. Life insurance becomes more expensive the older someone is because the older the person is the more likely they are to die. The benefits of insurance the non-working parent can also have an impact on the main income earner's future. If a stay-at-home mum or dad did die when the children were still very young, a life insurance payment could mean the working parent does not have to quit their job. Back To Top |
INSURANCE
Mt Isa Insurance Consultants is not authorized to provide advice on general insurance products however has a referral arrangement with an insurance company who will be able to assist you. Property |
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Copyright © 2004 - 2009 GR & SL Collins Pty Ltd trading as Mount Isa Insurance Consultants |
