Do I need life insurance? What you should know about life insurance

Four common myths about life insurance, set straight.

By BTYB Real Insurance
Life insurance isn't a topic that most people like to dwell on, and because it's not often talked about, it can be a confusing concept to get your head around.
But regardless, it's something that can prove to be invaluable, especially when it comes to protecting your loved ones during a difficult time.
To improve your understanding, we've rounded up some of the myths associated with life insurance to help set the record straight.

1. Only the breadwinner needs life insurance

Being of value to your family isn't all about bringing home the bacon.
If you are a stay-at-home parent that looks after the children while your partner is at work, a life insurance payment could cover childcare costs or extra support, should the worst happen to you. Other important tasks you perform that could have a financial impact include transport, home maintenance and cooking, to name just a few.

2. I don't need life insurance because I'm single

Despite possibly having no dependants or a mortgage to take care of, life insurance is still worth considering. Should you be diagnosed with a terminal illness or were to suffer a serious illness or permanent disability, you may require financial assistance to pay your bills and for any treatment. If you're not covered by the right life insurance, this may place those close to you under significant strain.
Start by thinking what would happen if you could no longer take care of yourself and look at possibly adding optional Serious Illness or Total and Permanent Disability cover to your life insurance policy. If you were no longer able to work, paying medical bills and private healthcare could become difficult. In the case of becoming physically restricted, a life insurance payout may allow you to keep living independently.
Think you're too young to get life insurance? Applying for life insurance when you're younger may have its perks: it could mean you are eligible for the higher benefit amount.

3. Life insurance is too expensive for me

Ultimately, the cost of your life insurance depends on your age and a range of health and lifestyle factors at the time you take it out as well as the level and amount of cover you choose. When working out what cover and what amount of cover is best for you, it's important to consider your total debt owing, your monthly household spending and the number and age of your financial dependents. Life insurance can be a way to provide peace of mind for you and your family without gutting your wallet.
Don't hesitate to ask your insurer if they provide rewards for existing customers or promotions for new customers.

4. Life insurance is difficult to organise

Many people won't bother with life insurance simply because they don't fully comprehend it or believe it's too difficult to organise. However, there are insurance companies that design their application process to be quick and easy to understand.
For instance, Real Life Insurance allows its customers to apply for life insurance over the phone with a single call and without needing to provide any medical certificates or blood tests. You can explain your personal situation and be quoted on which cover you think is best suited to you. Simple.
Also, if you're covered by Real Life Insurance, as long as you pay your premiums on time, the insurance company guarantee to renew your Life* portion of cover despite changes to your age, health and lifestyle.
And to save you money, Real Insurance offers their life insurance customers The Real Reward, which gives the insured back 10 per cent of the premiums they've paid after 12 months.
*Optional covers Serious Illness and Total and Permanent Disability cover will expire at age 65
Brought to you by Real Insurance.
This is general information only. Terms and conditions apply. Please consider the Product Disclosure Statement (PDS) available at This information is provided by Real Insurance, a trading name of Greenstone Financial Services Pty Ltd ABN 53 128 692 884, AFSL 343079. Real Family Life Cover is issued by Hannover Life Re of Australasia Ltd ABN 37 062 395 484.