I am a 27-year-old single father of a 3 year old. I rent a house in Auburn and earn a steady income through self-employment. I am thinking of getting life insurance cover but am confused about what I should consider when making the decision.
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
Answer by Neha Sharma, Hillsdale 2036 NSW
- How much life insurance is appropriate depends on individual circumstances and you should carefully consider the following things when deciding the level of cover you should take out:
- your debts including your:
- mortgage;
- loans; and
- credit cards;
- your dependants and their costs including:
- education costs including future education; and
- living costs;
- rent;
- everyday costs such as:
- food;
- personal items;
- utility bills; and
- car and petrol; and
- insurance costs such as:
- home insurance; and
- car insurance.
- The amount of cover you take out should adequately cover these costs in the event you are no longer able to work due to illness or injury or lose your life in an incident that is covered by your policy.
- It is imperative to get adequate financial advice as life insurance is a large investment.