Life insurance for established families

Do both parents need a life insurance policy?

Every family has different dynamics, whether they are a single parent and income household or dual. Depending on your individual situation, both you and your partner may decide to take out life insurance. If both you and your partner have your own policy, you can tailor your cover amount to suit your family and increase the overall level of protection for your household. 

Not only will you be able to choose up to five beneficiaries each, you will also have total control over your own policies. If either of your financial situations change, whether it’s a health or career change, it won’t impact the other person’s policy. 

Can we get life insurance as a family?

Depending on the life insurance provider, they may offer coverage for the whole family under a single plan. However, with Real Life Insurance, one adult can be covered on a policy, so while you can’t get a single policy that covers all of the adults in the one family, you can add optional Children’s Insurance to your cover if you’re a parent with children between 2 and 17 years old. Each child can be insured for a benefit amount between $20,000 and $50,000. This cover can provide a benefit payment if your children fall sick or get seriously injured, helping you take care of medical expenses or anything else they may need. 

For family members over 18, individual policies can be taken out, allowing each person’s policy to be tailored to their individual needs and financial situation. In addition to optional Children’s Insurance, with Real Life Insurance, you can also choose to add the following optional cover for an additional premium, to your policy depending on your situation:

1. Total and Permanent Disability Insurance (TPD): If you become permanently disabled or unable to work due to a permanent illness or injury, you could receive the benefit payment. TPD insurance can provide a payout ranging from $50,000 to $1 million, helping toward you and your loved ones being taken care of during challenging times. The payout can help cover medical expenses, daily living costs, and future financial needs, allowing you to focus on treatment without the added stress of financial worries. Find out more about TPD Insurance.
2. Serious Illness Insurance: As a parent, your family’s well-being is your top priority. With Serious Illness Insurance, you can protect your financial stability even in the face of unexpected health challenges. This option protects you against common defined serious illnesses such as cancer, stroke, or heart attack. You can apply to add the optional Serious Illness cover if you’re between 18 – 59 years old. Should you be diagnosed with a covered illness, you receive a lump sum payout, providing crucial financial support when you need it most. This benefit can help cover medical expenses, household bills, and other essential costs, while you recover.
   Find out more about Serious Illness Insurance.

What expenses can life insurance help my family cover?

A life insurance benefit payment upon passing is designed to be used however your loved ones need and can cover a multitude of expenses, from the everyday household ones like mortgage, utility bills and groceries, to more specific ones that are unique to your situation. Here are a few ways a life insurance payout can come in handy for an established family:

• Income replacement: If you are the primary earner and pass away, a life insurance benefit payment can help replace the lost income, allowing your partner and children to maintain their standard of living and day-to-day expenses, as well as on things like high school sports, music classes and study abroad plans.
• Debt coverage: It can be used to help pay off any outstanding debts, such as a mortgage, car loans, credit card debt, and any special equipment you may have bought your kids, like smartphones, computers, musical instruments and sporting equipment.
• Education costs: Life insurance benefit payments can provide funds that can be used for your children’s study plans, ensuring they can pursue higher education without financial barriers.
• Final expenses: Your family can use some of the life insurance payout to cover funeral and burial costs, one less financial burden to worry about during an already difficult time.

Use our life insurance calculator and discover how much cover you may need for your family.

Can my children be my beneficiaries?

Of course, you can name up to five people as your beneficiaries, which means you can name not only your partner but also your children. If your partner also has a policy, they can include your children as beneficiaries on their policy as well! 

Remember that you can change your beneficiaries or the percentage of the distribution of the benefit amount at any time. So, if you are part of a blended family, you and your partner will have the freedom to adjust the beneficiaries on your individual policies to reflect the family dynamics unique to you.