International Day of Families 2022: a timely reminder to financially protect your family

Every year the United Nations observes the importance of families through the International Day of Families. This year it will be on Sunday 15 May 2022. The purpose of the day is to raise awareness of ‘issues relating to families as well as to promote appropriate action’.

This year follows two of the most challenging years for families and communities the world over. Covid-19 has brought disaster to many lives and economies, but it has also made us reflect on the significance of family. When others were kept at a distance, it was family who were close, either physically or emotionally. International Day of Families on 15 May is an opportune time to think about the importance of family and keeping them safe.

NobleOak’s 2022 Whitepaper research highlighted the positive influence of family relationships during difficult times. Despite everything, the research found that Australians remain remarkably happy with an average happiness score of 6.5/10. Surprisingly, this hasn’t changed much since pre-Covid times where happiness averaged 6.6 out of 10.

The average happiness rating of parents and those in couples is 6.7, versus those in single households who average under 6.0. And those who spent more time with their families due to Covid-19 average 6.8 versus 6.3 for those that didn’t.

In fact, those taking a positive action to help protect their loved ones by buying life insurance report higher overall happiness levels. For those with direct life insurance, 82% rate their happiness at 6 out of 10 or more.

We also found that people were more likely to cut back on expenses if they lost some or all of their income such as holidays, entertainment, health and beauty, before life insurance. This indicates a shift in how essential life insurance is seen in protecting loved ones.

Life insurance for your family

Life insurance options are designed to help look after your family’s financial security if you die (life cover) or become incapacitated and can’t work (income protection insurance which pays a share of your income for a period, or TPD cover which pays a lump sum if you can never work again due to an illness or injury). In either situation your family or partner may be left with the burden of costs such as mortgage repayments, living expenses, funeral costs, schooling, etc.

Having the safety net of suitable life insurance products can help ensure your family is looked after financially.

Factors to consider about life insurance products

Life Insurance is a term that often refers to a group of products, all of which fall under the umbrella of life insurance products. Different types of life insurance include:

  • Life Insurance pays a lump sum in the event you die or are diagnosed with a terminal illness.
  • Total and Permanent Disability (TPD) insurance provides a lump sum if you are unable to ever work again because of sickness or injury that caused total and permanent disability.
  • Trauma Insurance provides a lump sum if you suffer a serious medical condition (listed in Product Disclosure Statement) for example, heart attack, paraplegia, or motor neurone disease[1].
  • Income Protection Insurance pays a monthly benefit whilst you are unable to work, for the benefit period applicable to your cover.

The structure of families has changed over time and International Day of Families is a timely reminder of how important families are in our communities.  It is also a reminder that Life insurance can help protect your family’s financial future, and a life insurance policy could be one of your greatest legacies.

Taking out life insurance may be one of the most important financial decisions you can make. To find out more or get a quote, call a NobleOak Life Australian-based insurance team member on 1300 014 494 or go online for a no-obligation quote.

This is general information only and does not take into consideration your individual circumstances, objectives, financial situation, or needs.

[1] In the PDS document for NobleOak’s Life and Trauma Insurance these conditions are known as Heart Attack – with evidence of severe heart muscle damage; Paraplegia – total and permanent; Motor Neurone Disease – means a group of progressive neurodegenerative diseases that specifically affect motor neurones.

 

Resources

https://www.un.org/development/desa/family/international-day-of-families.html

https://assets.nobleoak.com.au/wp-content/uploads/2022/03/07092252/2022-NobleOak-White-Paper_FINAL.pdf

https://www.nobleoak.com.au/product-disclosure-statements/

https://assets.nobleoak.com.au/wp-content/uploads/2020/12/04025900/Final-2020-White-Paper-11022020.pdf

https://www.nobleoak.com.au/insights/six-important-costs-your-family-faces-if-you-pass-away-and-how-life-insurance-can-help-them-deal-with-those-costs/

https://www.nobleoak.com.au/life-insurance/

https://www.nobleoak.com.au/insights/five-of-the-key-steps-to-take-if-youve-just-lost-your-job-and-have-a-family-to-support/

https://www.nobleoak.com.au/life-insurance/term-life-insurance-vs-whole-life-insurance/
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