The festive season is a time for family, celebration, and reflection. As the year winds down, many of us naturally think about the things that matter most—our loved ones, our health, and our financial well-being.
Amid the rush of gift-shopping and holiday planning, it’s also the perfect moment to pause and consider whether you have the right life insurance protection in place.
Life insurance is more than a financial product; it’s a safety net. It ensures that, should the unexpected occur, the people who rely on you—your partner, children, or other dependants—have financial support. This peace of mind is particularly important during a time of year when expenses can rise, and families gather to reflect on the past and look ahead to the future.
Why Life Insurance Matters
No one likes to imagine worst-case scenarios, but life is unpredictable. Adequate life insurance helps cover major expenses such as mortgage repayments, education costs, everyday living expenses, and outstanding debts. Without it, your loved ones may face financial strain at an already difficult emotional time.
Even if you have some insurance through your superannuation, it may not be enough. Many Australians are underinsured without realising it, often assuming their employer-provided cover is sufficient. In reality, default insurance rarely reflects individual needs or keeps pace with changing life circumstances.
The Festive Season Check-In
The end of the year is a particularly meaningful time to reassess your protection. Life changes quickly, and your insurance should evolve with it. Ask yourself:
- Has your family grown? A new baby or blended family structure often requires increased cover.
- Have you changed jobs or income? Higher earnings or new financial commitments can shift your insurance needs.
- Have you taken on new debt? A mortgage, car loan, or business finance should factor into your insurance planning.
- Have your health or lifestyle habits changed? Some insurers now reward healthy behaviours, so it may be timely to review your options.
These moments of reflection help ensure your cover still aligns with your life stage, goals, and financial responsibilities.
Tips for Ensuring You Have Adequate Protection
- Review your existing policies
Take a close look at what you already have—whether inside or outside super. Check the level of cover, exclusions, and whether it would realistically support your family’s needs. A simple annual review can reveal gaps you weren’t aware of. - Understand the different types of cover
Life insurance isn’t just one product. There are four main types: Life Cover, Total and Permanent Disability (TPD), Trauma Insurance, and Income Protection. Each plays a different role in safeguarding your household against financial stress. A well-structured combination tailored to your circumstances is often more effective than relying on a single policy. - Don’t set and forget
As your life changes, so should your cover. Make it a habit to revisit your insurance annually or whenever a major life event occurs. Regular reviews help ensure your protection remains relevant and adequate. - Consider affordability and sustainability
The right policy should balance strong protection with a premium that fits comfortably within your budget. A financial adviser can help compare options and structure premiums in a way that supports long-term affordability. - Seek expert advice early
Insurance can be complex, and waiting until something goes wrong is too late. Engaging a qualified financial adviser ensures your policy is correctly tailored, competitive, and aligned with your goals. They can also simplify the process and advocate for you if you ever need to make a claim.
Don’t Leave It Too Late
The festive season is a timely reminder that life is precious. Ensuring you have the right life insurance in place is one of the greatest gifts you can give your loved ones—security, stability, and peace of mind. If it’s been a while since you reviewed your cover, now is the ideal moment to connect with your financial adviser and take control of your protection for the year ahead.
If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.
This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.