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While many of us work hard to ensure a financially stable future, relatively few give more than a passing thought to ensuring our family’s financial stability in the event of our death.
A recent study by insurance provider OnePath and market research firm Ipsos, found that the death of a parent has dramatic impacts on a family’s lifestyle, over and above the obvious grief and emotional distress.
“But these impacts were lessened significantly among those with life insurance,” Oxley Insurance Group’s Life Risk Advisor, Rod Mclean said.
“The study found that, after the death of a parent, families with life insurance were more likely to keep their family home and the finances stable.”
Among those with insurance, the percentage of families who rated their finances as adequate increased from 44% to 56% following the death of a parent.
Meanwhile, among those without insurance, the percentage who said they were struggling financially jumped from 14% to 47% following the death of a parent.
Families without insurance were also more likely to have to move out of the family home (33%) as a result of financial pressure compared to those with insurance (22%).
This was on top of health and emotional impacts which occurred in children across both groups including:
“Basically, if anyone relies on you financially, you need life insurance,” Rod McLean said.
“It’s not about trying to put a value on your life, but rather ensuring that the inevitable bills which continue after death, such as mortgages, credit card payments and school fees can continue to be met, despite the loss of income or support at home.
“This allows the remaining spouse and children to grieve and support one another, without having to focus on the financial implications.”
If you would like to discuss your life insurance, call us today on 1300 799 422.