Why Buy Life Insurance?

If, like most Australians, you and the financial contribution you make to your family or business are irreplaceable, then you need a solid and dependable plan in place to protect you if you were suddenly unable to keep making your contribution. So why buy life insurance in Australia? Because life insurance is that plan you need. It is one of the key foundations of a successful financial plan, and it is protection! It is protection for your family, your business, your assets and everything that you have worked all your life to obtain. People buy life insurance for two main types of financial protection: protection for their family, and protection for their business. And with many different types of life insurance and insurance products available on the market to suit various stages of your life, it’s even easier to secure the right protection for your needs and circumstances. This is why you need to buy life insurance in Australia:  

Family Protection

Loss of Income

Sufficient life insurance should be purchased to replace your income in the event of your death, or if you were suddenly unable to work due to illness or injury.

Income Protection Insurance, Trauma Insurance and TPD Insurance can provide this sort of support while you are still alive and recovering from a critical illness or injury, while standard Term Life Insurance will give your family and dependents the financial support they will need after you’re gone.

Capital Provision

Adequate life insurance should also be purchased to ensure that your family has additional capital to meet emergency and unforeseen expenses that may arise from time to time.

This extra funding will allow your loved ones to live comfortably and plan for the future without putting a strain on their regular finances.


Life insurance will ensure that in the event of your death, your children can have the education that you would like for them.

This can include anything from providing good educational opportunities and being able to fund their school-based and extracurricular activities, to offering a quality tertiary education after they graduate from high school.


As a result of your death, taxes such as Capital Gains Tax could be triggered which your family would then have to pay for, causing additional stress at an already extremely stressful and distressing time.

Sufficient life insurance should be purchased to meet these obligations, so that your loved ones aren’t left to inherit your tax obligations and debt after you’re gone.

Asset Protection

Having the appropriate amount of life insurance cover will ensure that your family do not have to sell any of your assets after your death.

And if you are unable to earn an income because of a critical illness, injury or permanent disability, then other types of life insurance such as Income Protection Insurance, Trauma Insurance and TPD Insurance can provide this same protection and ease the financial burden on yourself and your loved ones.


Business Protection

Key Person

Businesses insure the lives of key people within the business in order to minimise the financial loss suffered as a result of a death.

These losses can occur as a result of a loss of revenue, capital value or the high cost and/or difficulty of finding a similar replacement employee.

Bank Guarantee

If a director or shareholder has guaranteed business debt, the bank or lender could look to either secure or call in the loan after they die.

Life insurance will provide the funds for this purpose, eliminating the impact on other key members of the business and its core operations.

Share Purchase

In the event of one shareholder dying or becoming permanently disabled, life insurance can provide the necessary funds for the remaining shareholders to purchase those shares from the deceased shareholder’s estate without having to liquidate business assets.


Get a Comprehensive Life Insurance Comparison

Life insurance is a necessity for anyone with who’s contribution to their family or business needs protecting. It guarantees a dependable financial backup if you were suddenly not around anymore and unable to provide for your loved ones, and protects your business and assets from debt and loss.

So if you’re still wondering why buy life insurance, contact the insurance specialists at Cover Australia today to compare a large range of life insurance products and receive expert advice about how various types of life insurance can benefit you. We offer extensive comparisons, specialist no-obligation advice and ongoing service to help you make the right insurance decision. We can also assist with comparing and securing all types of life insurance including Income Protection comparison, TPD Insurance comparison, Trauma Insurance comparison and Business Expenses Insurance comparison, so that you can be protected at every stage of your life. Get a free, no-obligation quote now!

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