If you sometimes feel like a human ATM, you’ll know that family life with teenagers can be an expensive proposition. Poised on the brink of adulthood, teens generally have a lot going on in their lives and most of it costs money.
On one hand there are school or tertiary fees, text books, IT equipment and sports teams. And on the other hand you’ve got clothes, shoes, entertainment and special interests. And then there are life goal expenses like learning to drive, followed closely by the first car. It all adds up.
Life insurance can play an important role in protecting your family’s financial security if something was to happen to you. Here are some of the ways it may help:
Keeping the income coming in when you’re sick
While you might have savings that could be called upon if you’re sick for an extended period, an option could be income protection insurance. It pays a percentage of your income after an agreed time if sickness or injury prevents you from working for an extended period.
Getting past a serious health condition
As you get older, the chances of a serious health condition increase*. What would happen if you were affected by a heart attack, cancer, loss of sight or Parkinson’s disease? To balance the big dent a serious sickness can put in your income, you can look at getting trauma cover – a type of insurance that pays a lump sum if you suffer from a condition covered in the insurance policy. A range of conditions are covered, some of which are very common - like Alzheimer’s, prostate cancer, breast cancer and heart attack. For some conditions cover starts 3 months after you’ve taken out the cover.
Lessening the financial impact of a tragedy
The worst-case scenario for families with teenage kids is death of a parent. But it happens. A way to offset this financial risk is life cover, which can pay a lump sum to the family left behind. The payment you receive can be helpful to put towards large debts like a mortgage, support ongoing household expenses and paying for future goals, like helping kids into their first homes.
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