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Insuring your family's future

Insuring your family's future

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Date Published : Monday, May 12, 2008

Taking out life insurance is one of those things that is always hard to think about. Making sure those around you have sufficient funds if something does go wrong can be emotionally challenging.

However, ignoring such insurance policies could potentially be the biggest financial mistake anyone can make. Building wealth throughout your working life could prove to be a bit pointless if there are no safeguards to protect it if something goes wrong.

A number of personal insurance policies exist on the markets, with life insurance being the most common.

Life insurance policies pay a specified lump sum to the next of kin when the insured person dies. It aims to help the surviving family members meet mortgage payments and other debts, while also covering living expenses such as food, childcare and health insurance payments.

According to the Advertiser, the average healthy 40 year old male can expect to pay $53 a month for $500,000 of life insurance cover.

However, there are a number of other insurance policies which could help people protect their wealth and the future of their families.

Income protection can be taken out and, according to the publication, is often viewed as the second-most important form of personal insurance after life cover.

These policies often cover up to 75 per cent of a person's gross monthly income in case of illness and injury.

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