You are in your early 30s and married for five years, and your spouse is also in her early 30s. You have a son who is five years old. You both are doing very well with household income of $200,000, house worth $600,000 and mortgage of $450,000. You have a car financed with $25,000 in loans. You both have Superannuation Accounts each worth $200,000 and an Education bond now worth $15,000. Your plan is to have at least $1.5 million each in your Superannuation accounts and fully pay for your son's education and give him some money after graduation; you estimated about $85,000 will do. You have great investments and a top investment adviser; you save aggressively on monthly bases; and can reach your goal in about 20 years. You have the 'perfect' financial plan. Now, you find out that you have some type of cancer and cannot work for at least 18 months, if you get the treatment right away. The only way you can get the treatment quickly is if you go to a private clinic.

What are the consequences of not having adequate life cover?

Why is it important to consider life insurance as part of a financial plan?

Answer rating: 100% (QA)

Not having adequate life insurance coverage can have significant consequences in your situation 1 Financial strain If you become unable to work due to ... View the full answer