Life Insurance

According to MLC, for every 1 home lost* through fire, there are 3 homes lost through death and 48 lost through disablement. This is because the temporary or permanent loss of a breadwinner often results in an inability to meet home loan commitments, forcing the sale of the family home.

But the same catastrophic effect can be felt if the home maker suffers death or disablement. Bills mount up, there’s the cost of day care if the primary breadwinner maintains their job, house keeping/cleaning/nanny costs. Lots to consider…. 

(*with regard to mortgage foreclosures. A US study conducted by the US department of Housing and Urban Development in 2005)

Life Insurance can be paid by lump sum or by instalments. It can be used to clear the mortgage, pay other debts, pay for the children’s education or cover general living expenses.