3 moments when you should rethink your life insurance
Did you know you can tweak your life insurance as your life evolves? Whether you’re getting hitched, having kids, or planning for retirement, your insurance should grow and change with you.
Life insurance isn’t just about covering debts or funeral costs—it’s about protecting the people you love most if something happens to you. The good news? Most insurers let you review and adjust your cover at key moments in your life. Here are three times when you should consider updating your life insurance.
When you’re getting married
According to a 2024 report from Bride to Be magazine, the average cost of a wedding in Australia has skyrocketed to $65,482. That's a massive jump from the $36,000 average just a few years ago. And let’s be real—those numbers might still be on the conservative side. Most people are dropping at least $60k on their big day, so these "averages" might actually be underplaying it!
Getting married is exciting, and it’s also a good time to think about how you’ll protect your partner financially. You might have joint debts like a mortgage or car loan, or maybe you’re both relying on your income to cover day-to-day expenses. Upping your life insurance could help your partner stay on top of those financial obligations if anything unexpected happens.
When you have kids
Kids change everything, including how you should approach your life insurance. Raising a child in Australia costs anywhere from $159,120 to $548,500 over 18 years, according to Finder. That’s a big commitment! Boosting your life insurance ensures that if something happens to you, your kids will still have the financial support they need.
Source: How much does it cost to raise children in Australia? | Finder Accessed August 2024.
| Category | Cost per month per child (2016) | Cost per month per child (2021) |
|---|---|---|
| Childcare | $68 | $122 |
| Clothing | $85 | $140 |
| Communications, connectivity and technology | $37 | $106 |
| Educational costs | $130 | $386 |
| Extracurricular activities | $44 | $140 |
| Entertainment, leisure and social activities | $43 | $133 |
| Food | $250 | $402 |
| Furnishings and equipment | $23 | $118 |
| Health care | $92 | $112 |
| Holidays | $47 | $97 |
| Housing | $421 | $321 |
| Insurance | $31 | $70 |
| Personal care products and services | $73 | $96 |
| Pocket money | $24 | $59 |
| Savings and contingencies | $39 | $318 |
| Transport | $98 | $232 |
| Tutoring | $20 | $58 |
| Utilities | $98 | $134 |
FEEDING THE FAMILY
Rising cost of food is the biggest overspend area for a family.
Source: Suncorp Bank - Cost of Kids Report
When you’re downsizing
Maybe the kids have moved out, or you’ve paid off your home. As you gear up for retirement, downsizing your life insurance could help you save on premiums. You won’t need as much coverage, but you’ll still have enough to cover the unexpected.
Not sure what you need? Have a chat with your financial adviser who can help you review and tailor your coverage to suit where you’re at in life. With the right cover in place, you can relax knowing your loved ones are financially protected.