When your family depends on your salary, it's stressful to think about how they would cope if you weren't around anymore. Life insurance is a way to help ensure that your loved ones are taken care of if you’re no longer around. 

Life insurance provides a financial safety net for your loved ones in case of your unexpected death. The lump sum is paid to the beneficiaries you choose when you take out your policy (or amend afterwards) - these are usually your children or trusted family members. 

It’s a pretty simple concept. You pay your life insurance company (your ‘insurer’) a monthly fee (a ‘premium,’), and, if something happens, a payout (‘death benefit’) goes to the person, people, or organization of your choosing, for them to use however they choose. Those who you designate to receive the death benefit are known as your beneficiaries. 

If you have children, family, or other people who depend on you and your income, and if you are paying off a bond or a car, or other financial debts, life insurance is a safety net to provide a bright and secure future for the people you care most about. 

The lump sum can help cover expenses like funeral costs, debts, future living expenses, or education expenses. Once covered you can relax and enjoy piece of mind knowing your family’s future is secured. 

For example, if you have a young child with hopes of studying at university, life insurance can help pay for tuition when the time comes. If you’re the main breadwinner in your household, you might use life insurance to help your partner pay for expenses, make home loan payments or pay the loan off in the case of your death. If you own a business, you might even use it to ensure your colleague can keep the business afloat in your absence or that your beneficiary can successfully take it over.