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Risk Insurances

Why you need life insurance

There are many reasons for taking out life insurance.

If you’re the principal income earner in the family, life insurance is a good way to help provide your family with a stable financial future.

Even if you are not the primary wage earner in your family, it’s important to have insurance to help cover the financial burden of childcare, funeral expenses, and other unforeseen costs.

While many of us find it difficult to acknowledge our mortality, planning for it can ease the burden our loved ones will face later.

Taking out life insurance can help make a difficult situation easier by providing death benefits for:
• Unpaid medical bills
• income replacement for survivors
• expenses such as funeral and burial costs
• unplanned or emergency expenses
• your mortgage balance
• future education funds for your children.

Business Owners
As well as taking care of your family, life insurance can also protect your business.

What would happen to your business if you, one of your fellow partners, or perhaps a key employee, died tomorrow?

Life insurance can help in a number of ways.  For example, a life insurance policy can be structured to fund a “buy-sell” agreement,  this would ensure that the remaining business owners have the funds to buy the company interests of a deceased owner at a previously agreed upon price.

That way, the owners get the business and the family gets the money.

To protect a business in case of the death of a key employee, “key person insurance”, payable to the company, provides the owners with the financial flexibility needed to either hire a replacement or work out an alternative arrangement.

Most single people believe that they don’t need life insurance because no one depends on them financially.

But there are exceptions.  For instance, some single people provide financial support for aging parents or siblings.  Others may have incurred a significant debt that they wouldn’t want to pass on to family members who survive them.

Life insurance should be included in any financial and wealth creation strategy and you should discuss your situation with a professional financial adviser

Life insurance provides for your loved ones and ensures that they are not burdened financially in the event of your premature death or disability.

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The information provided on this website, including the material and contents provided in the website publications, are informative in nature only and you should not act specifically on the basis of this information alone. It should not be used as a substitute for legal, business, accounting, tax, financial planning or other professional advice. If expert assistance is required, professional advice should be obtained. Liability limited by a scheme approved under Professional Standards Legislation

Paul Baggetta is the Founder & Principal of Baggetta & Co (ABN 68 786 233 813).

Paul Baggetta has been a Taxation Accountant since 1981, a Financial Planner since 1998, and in 1993 qualified as a Real Estate Licensee, holding a Triennial Certificate (currently not trading) and operated his own Real Estate business for property investment clients for over 5 years as a second business.

Financial planning services are provided by Paul Baggetta as an Authorised Representative (No. 261469) of Capstone Financial Planning Pty Ltd. ABN 24 093 733 969. Australian Financial Services License No. 223135.


Taxation & Accounting services are provided by Paul Baggetta as a Registered Tax Agent (No.61487008) and is a Member of SMSF Association, FIPA & NTAA.