Too much love/insurance ain’t enough

Wrong question. Try this one: “How much do you love your partner and/or kids?”

Life insurance covers your family when you can’t fog up a mirror anymore. That is, you’re dead. An unfortunate situation to find yourself in.

But even less fortunate for your family.

You’re not around to earn an income for the next 20-30 years, to pay the mortgage or the school fees, or to help raise the kids.

Gen Xers have more at stake via death than other generations, because of the monster mortgages we’ve accrued and the midgets running around our homes.

So, how much money do you want your family to have if the proverbial bus took you out? I want mine to have enough to make sure they can continue on, financially, like I wasn’t six foot under. Or cremated and scattered. Haven’t decided yet.

The mortgages should be paid out, the school fees covered with enough left over to create income streams for my still-young family.

The older your kids get, the less insurance you’ll generally need. But while they’re young … it’s almost a crime not to have oodles of cover.

If this kicks you into action, also consider the other personal risk insurances, covering total and permanent disability, trauma and income protection.

These three also have a crucial role in protecting your family and your lifestyle. Though, with these insurances, you’re still on your perch.

The life insurances – all four of them – are the most important insurances Xers can have. You can’t really have too much and some of them can be funded inside your super.

Bruce Brammall is the principal adviser with Bruce Brammall Financial (www.brucebrammallfinancial.com.au) and author of Mortgages Made Easy.