It’s not something that people often like to think about, but at a certain point in your life you will need to start thinking about how you can provide for your loved ones in a time of grief. The last thing you want to worry about is how they will cope financially in your absence. Life insurance may not be a fix-all solution, but it can offer peace of mind if tragedy were to strike.

There is no pre-determined age or life stage for taking out a life insurance policy, but here are some brief tips to help you through the process.

Financial security

As you get older, your financial obligations and responsibilities change. People usually take out a policy when they reach significant milestones, which might mean getting married, having children or even securing a new job, or buying a property. Whatever the scenario, the primary reason for life insurance is to protect your savings and those dependent on you from unforeseen events, by providing the resources to pay bills, fees and household costs.

Types of policies

Life insurance comes in many shapes and sizes, and you can take out a number of policies depending on the extent of coverage you want. Remember: The more coverage you obtain, the more protection you will have. Life cover provides a lump sum to the person you designate as beneficiary in the case of your death, while total and permanent disability policies cover rehab costs, among other things. There are also policies that cover critical illness or injury, and those that replace your income if you are left unable to work.

Each policy will have a different premium and these vary across providers. It’s worth sitting down with a financial planner in this scenario, who can source a range of suitable policies for you to compare.