Children the top reason for buying life insurance
"Life moves pretty fast. If you don't stop and look around once in a while, you could miss it." The take-home line from Hollywood blockbuster Ferris Bueller's Day Off rings as true today as it did back in 1986. Life events can come at a moment's notice, and for many, it's an opportunity to sit up and consider buying life insurance
According to a survey by Asteron Life of 1,500 Australians, the biggest life-changing trigger that makes people consider their financial future is having children.
More than half of respondents said starting a family would inspire their purchase of life insurance.
More than half of respondents (51 per cent) said starting a family would inspire their purchase of life insurance. With dependent children entering the scene, these new parents understandably want to ensure they have the protection to cover any unfortunate circumstances.
That could be losing a job, struggling to pay off a mortgage or funeral expenses should the worst happen. In short, parents want to make sure their children are protected financially given future life-changing events.
Asteron Life Executive Manager Mark Vilo said people in their 30s are growing particularly conscious to such risks.
"The average age for Australians to have children is 31 and to buy a first home it's 34. That means much of generation Y are either experiencing or about to experience these life-changing events," he explained.
Mortgages and ageing
Slightly below having children was taking up a mortgage. Again, almost half of respondents (46 per cent) saw this as a signal to protect their income with life insurance – something that your mortgage broker will take into account.
In third place with 39 per cent was getting older. Australia's ageing population is putting into perspective the fact that experiencing health issues becomes more likely as we get older. Interestingly, in 1970, 31 per cent of the Aussie population was 15 or younger, while by the turn of the millennium, this had fallen to 22 per cent, according to government statistics.
Looking at both of these figures, it's no wonder so many Australians are looking to secure their futures for any unforeseen events.
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"With only 20 per cent of generation Y seeking regular financial advice, they're missing an opportunity to take greater control of their financial futures," Mr Vilo continued. "A little bit of planning can go a long way, and ensure life-changing experiences can be fully enjoyed without financial stress."
If you need help with any part of your finances, our team is on hand to help. From mortgage broking to financial planning in the Whitsunday Shire and finding the right life insurance package, Eclipse Financial Services is here to help our local communities secure their financial futures.