When should people use a life insurance policy?

  • See video transcript below

Video Transcript:

Speaker: Drew Browne, Specialist Financial Adviser @unusualrisks

Transcript: A really important question people ask is, when should they use a life insurance policy to help them manage the risks of life that they can't manage themselves. Really it comes down to the four different ways we see risk. In life we see risks as either Avoidable, Acceptable, Manageable or Transferable.

Now everyone knows that if you can avoid a problem it's a good idea to do.

Living life is risky and the older you get the more you know that life never really works out just the way you thought you planned it would. And the reality is we all have risks to avoid, we also have risks that we have to accept that we can do nothing about but the really important risks we have to manage.

Now managing a risk requires a different approach. It might be that you have to tell the kids to 'stop running around the swimming pool.' You might have to enforce the rule that they should stop tormenting the neighbor's dog.

It also means that you might have to use an insurance policy - so that if your son drives the family car through the Mercedes-Benz showroom - that you have a policy in place to protect you from the catastrophic financial effects that with that accident can occur.

And that's about managing risk, but there are some risks that are so catastrophic that are so significant and life-changing, that we have to transfer them away to an insurance company to hold for us. That's where a life insurance policy comes in; if you unexpectedly pass away before your time, your plans your mortgages your debts, your hopes for your children's future can continue and the catastrophic effect of that financial loss doesn't have to be borne by them.

Another way you can transfer a risk that's too great to hold personally, to an insurance company, is through Income Protection. An Income Protection policy can pay you if you're sick or you're injured and you can't continue in your job until you recover. It's important when you're looking at ways to manage the risks for your family and yourself that you consider that the major risks should be transferred to a major insurance company to hold for you.

Life is risky that's just the reality of it; and the issue may not be whether or not you can afford the premium, the real issue maybe you don't think these things might happen to you.

Video Links

Where to now?

  Just browsing? Check out Our Blog.

  Learn more about how our process works. See How It Works.

  Have some questions? See Frequently Asked Questions.

  Contact Us directly for a confidential chat or email conversation.

Fast Site Search

Pic of Advisor Drew Browne (he/him)

Drew Browne (he/him)

Senior Advisor to Unusualrisks
& Sapience Financial

 

Download Our Latest Free eGuide

Download our latest free eGuide for Queer Families, Gay Dads, Lesbian Mums, Parenst & Co-parents and Rainbow Families

Download Our Free Helpful eGuide - 7 Financial Decisions for Same-sex Newlyweds

Download the female cover version of 7 Financial Decisions Same-sex Newlyweds need to make

 

Download the male cover version of 7 Financial Decisions Same-sex Newlyweds need to make

Take Our Anonymous Pre‑assessment

Find out in 60 seconds if your personal situation is one we can work with.

No contact info required

Start!

Use your mobile device to take a pre-assessment

Read Our Case Studies

Click below to browse through over a dozen different case studies and see how we've helped different people all feel safer and more secure in their love, life and work.Read through over a dozen individual Case Studies

Whatever your situation, we can help you

  • Single

    Age is no indicator of relationship status or financial responsibility.

    • You can be young and starting out or older and established; and both enjoying living the single life.
    • You might be single, single again, sometimes single, single with kids, single with pets or perhaps something a little more complicated.

    When it comes to being single in the LGBTQI+ community, there's really no such thing as average.

    And it's your single life, so live it your way.

    Read more...
  • Partnered

    Sharing life and love with someone can be twice as exciting.

    • You might be partnered, partnered with pets, officially de facto, officially married (yay!), splitting expenses but sharing life, or joining incomes and combining financial lives too.
    • You might be together but living apart, working towards a future with kids, thinking about fostering, adopting, IVF or surrogacy; or perhaps something a little more complicated.

    When it comes to being partnered in the LGBTQI+ community, there's really no such thing as average.

    There's no right or wrong way to live a purposeful life, just what works for you both.

    Read more...
  • Parenting

    For today's LGBTQI+ families, there are no accidental families.

    • You might be parenting and single with kids, parenting solo with kids, parenting and partnered with kids, (yours, theirs and ours), dual parents with kids, co-parents, foster parents, adoptive parents, or even adoptive parents of kids with additional needs (just beautiful!).
    • You might be a lesbian co-parenting couple or super involved 'Guncles' or Aunties. You might not even identify with the broader LGBTQI+ community but find yourself a parent in a same-sex relationship, or perhaps something a little more complicated.

    When it comes to parenting in the LGBTQI+ community, there's really no such thing as average.

    However you're doing it, Love makes a family.

    Read more...