We plan holidays. We plan renovations. We plan our careers, our children’s education, our retirement and even what we might do next weekend.
But there is one question many of us quietly avoid:
What would happen if something happened to me, or someone in my family?
It is not a comfortable thought. In fact, for most of us, life insurance sits well down the list of things we want to think about. There is always something more immediate to deal with — work, bills, family, travel, sport, school, home projects and the everyday demands of life.
Yet every now and then, something makes us stop.
It might be the eve of an overseas trip. It could be the end of the year, when we naturally reflect on where life is heading. Perhaps it comes with a New Year’s resolution to finally get our finances organised.
Sometimes, sadly, it comes after someone we know experiences illness, injury or loss.
That is often when the question becomes much more real:
Would my family be financially prepared if the unexpected happened?
Life insurance is really about protecting the people around you
It is easy to think of life insurance simply as a policy or another monthly expense. But at its heart, it is about creating financial breathing room when life takes an unexpected turn.
For a family, that may mean helping to cover the mortgage or rent, household expenses, education costs and everyday living expenses if an income suddenly disappears.
For a couple, it may mean ensuring one partner is not left facing major financial commitments alone.
For a business owner, it may also involve protecting the business, employees, loans or key people who are important to the organisation’s future.
And importantly, life insurance is not always just about death.
Depending on the type of cover, insurance can potentially provide financial support if you become seriously ill, suffer a significant injury or are unable to work for an extended period.
The problem with waiting
Most people do not wake up one morning thinking, “Today I should review my life insurance.”
That is exactly why it is so easy to put off.
The danger is that circumstances can change faster than we expect.
We buy homes, have children, change jobs, start businesses, take on debt and gradually increase our financial responsibilities. Yet insurance arrangements may remain unchanged for years — or may never have been properly considered in the first place.
By the time life forces us to think about it, our options may be very different.
A better approach is to consider insurance while life is going well.
Ask yourself a few simple “what if” questions
You do not need to become an insurance expert overnight. A good starting point is simply to think about the financial consequences of an unexpected event.
Ask yourself:
- What debts would still need to be paid?
- How long could my family manage without my income?
- Would my partner be able to maintain the household financially?
- What would happen to school fees, childcare or other family commitments?
- Would I have enough financial support if illness or injury stopped me working?
- Has my insurance kept pace with changes in my life?
These questions are not intended to create fear. They are about creating clarity.
Preparation brings peace of mind
Insurance cannot prevent difficult things from happening.
What it can potentially do is reduce the financial pressure that accompanies them.
That is why reviewing your life insurance should form part of a broader financial plan, particularly after major life changes such as buying property, having children, changing careers, taking on significant debt or starting a business.
Professional advice can also be valuable. A Financial Adviser can help you understand the different types of personal insurance available, consider how much cover may be appropriate and review whether existing policies still reflect your current circumstances.
Perhaps the best time to think about life insurance is not after something has happened.
It is when life is good.
When you are planning the next holiday, thinking about the year ahead or setting new goals, perhaps add one more question to the list:
If life did not go according to plan, would the people I care about be financially prepared?
Sometimes, being prepared for the “what if” is one of the most important ways we can look after the people we love.
If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.
This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.
(Feedsy Exclusive)