Can life insurance protect my debts?
Written on the 3 May 2019 by Arrow
Life Insurance cover is about protecting those who are left behind. Find out how the right policy can ensure your family isn't left in debt if the worst should happen.
Why Life Insurance?
What happens to my debts after I die?
How can life insurance help to cover my debts?
Outside super, your nominated beneficiary/ies, as confirmed in writing by the insurance company, will receive their share of the payout.
Can I set up or adapt my life insurance to suit my level of debt?
Your Life Insurance policy can be designed to make sure your loved ones aren't shouldered with hefty repayments or reduced inheritance. Some policies have features that allow you to increase your cover easily when certain life events occur. These events might include getting married or applying for a mortgage. You may be able to increase your life insurance to reflect these big milestones, by or up to certain amounts, without having to provide new evidence of your health or hobbies, where you have taken out a policy that includes this feature.
You should always make sure you re-assess your level of cover to reflect your changing circumstances and levels of debt to help make sure your family remains protected.
How do insurers know who to send the pay out to?
If you would like to discuss your options, feel free to get in touch.