Top Reasons Why People Take Out Life Insurance

why take out life insurance

Feb 06 2013

Posted by Canstar Research on 23/12/2014

Applying for life insurance is a personal decision and is something we don’t often put on our priority list. There are many reasons why people decide they need to take out a life insurance policy. Not to mention the fact that having life insurance represents part of good financial planning, and may even be recommended by your financial planner. Here are some of the reasons that many investors and other individuals apply for life insurance through an independant financial adviser:

Young single person

  • Kick starting your career and landed your first job
  • Taken out a personal loan to buy a car
  • Found the love of your life and about to tie the knot
  • Just bought a house and a mortgage to go with it
  • Got personal debt as well as credit cards maxed out
  • About to start a family
  • Got a pay rise
  • Plan to send the children to a private school and uni

Mature couple

  • Renovating the house and need to increase or re-draw your mortgage
  • Increasing your debt to purchase an investment portfolio or rental property
  • Have a special needs child who you want to ensure will be looked after when you’re gone
  • Have physically or financially dependant parent/s
  • Divorced and on your own again
  • Want to leave an inheritance for children or grandchildren

Self employed

  • Have fixed expenses such as rent, lease payments and phone bills
  • Taken out a business loan to purchase a commercial building
  • Gone into business with a new partner
  • Have key staff within your business that contribute to profitability

Whether you seek your own direct life insurance or seek advice from a licensed financial planner, it’s up to you to take action at the appropriate times in your life. Here at CANSTAR we offer a free service to put you in touch with a life insurance adviser or financial planner who services your local area. Simply click below to begin the simple, obligation-free process.


Category: Insurance

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