It is important to work out individually what you need to protect and how much cover you need. But the lump sum payment can be used for goals such as:
- Cover the cost of funeral expenses
- Repay your mortgage, credit card and other debts so you can pass on the full value of assets to your dependents
- Generate an ongoing income stream to help your family to meet their future living expenses and maintain their lifestyle
- Set money aside for future education costs for your children or grandchildren
- Enable your estate to treat your beneficiaries equitably without the need to sell particular assets
- Make charitable bequests
- Cover other expenses such as childcare and housekeeping.
Without insurance, your family or dependents may need to run down their savings, sell assets, and/or rely on family or Centrelink for assistance. They may also find it difficult to maintain their standard of living.