Life insurance is vital for everyone, but more especially for migrants who may not have the same safety nets in place as they did in their home countries. You may have migrated to Australia for many reasons, including work, studies, or to be with family, but regardless of your motivation, there’s no doubt that you’ll need to protect your loved ones financially if something happens to you. Fortunately, life insurance in Australia is affordable and easy to access, making it the ideal way to safeguard your family’s future.
Why Policies From Your Home Country Won’t Suffice?
1. You might not be covered if you die while working or living in Australia
If you’re covered by a life insurance policy in your home country, it’s important to check the fine print to see if you’re also protected if you die while working or living in Australia. Often, policies only cover you for death in your home country or for accidents that happen while you’re travelling. So, if you’re planning on spending a significant amount of time in Australia, it’s best to take out a local life insurance policy to make sure your loved ones are taken care of financially if you’re no longer around.
2. The payouts might not be enough to cover the costs of living in Australia
The cost of living in Australia is notoriously high, so even if your life insurance policy in your home country pays out a decent amount, it might not be enough to cover the costs of living here. This is especially true if you have a family to support. By taking out a life insurance policy locally, you can ensure that your loved ones will have enough money to cover their living costs, even if you’re no longer around to help out financially.
3. The exchange rate may affect the policy’s value
If you have a life insurance policy in your home country that’s denominated in a different currency than the one used in Australia, there’s a chance that the exchange rate will fluctuate between the time of your death and the time that your loved ones receive the payout. This could result in them receiving less money than you intended. To avoid this, it’s best to take out a life insurance policy in Australia, which will pay out in Australian dollars.
4. Your family might not be able to access your policy if you die in Australia
Because of the probate process, your family might not be able to access your life insurance policy if you die while working or living in Australia. This process can be long and complicated, as it involves proving the validity of your will in a foreign country. To make things easier for your loved ones, it’s best to take out a life insurance policy in Australia, which will pay out directly to your beneficiaries.
5. The payouts may be subject to taxes in Australia
Depending on the terms of your policy and the way it’s structured, it could be subject to taxes in Australia. Ultimately, this will reduce the amount of money that your loved ones receive, so it’s vital to take this into account when planning for your family’s financial future.
Benefits of Life Insurance in Australia
Death
If you die while working or living in Australia, your family will receive a payout from your life insurance policy. Since your income is a pivotal contributor to your loved one’s way of life, this lump sum can be utilized to ensure that their financial commitments can still be met with ease.
Furthermore, it’s vital to consider the immediate costs of your funeral – especially if you wish to be repatriated to your home country. Life insurance will offer your family the funds they need to give you the send-off you deserve without putting them under additional financial stress at an already difficult time.
Total and Permanent Disability
If you’re diagnosed with a total and permanent disability, you’ll be entitled to a lump sum payout from your life insurance policy. This can be used to cover the costs of any necessary adaptations to your home, as well as to replace your lost income. If you have a family, this payout can be used to ensure that they can maintain their current lifestyle without the added worry of how they’ll make ends meet.
Income Protection
Unlike permanent disability cover, income protection insurance kicks in when you’re temporarily unable to work due to an accident or illness. This can be an invaluable safety net, as it provides you with a replacement income while you recover. These payments are issued periodically rather than as a lump sum, acting as a financial buffer until you’re back on your feet.
Greg Maguire of Absolute Insurance can offer a number of tailor-made solutions to meet your financial needs. Set up an in-person consultation or book a virtual meeting today to find the right policy for you and your loved ones.
