Personal Insurance
Learn how life insurance works, who needs it, how much cover you may require and the key factors to consider before taking out life insurance.
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Protecting the people who depend on you
Life insurance is one of those things people hope their family never needs.
Unfortunately, life doesn't always go according to plan.
If you were no longer here, would your family be able to:
For many Australians, life insurance provides financial security at one of the most difficult times a family can experience.
It isn't about replacing a life.
It's about protecting the people who remain.
In this guide we'll explain:
Life insurance pays a lump sum if the insured person dies or, in some policies, is diagnosed with a terminal medical condition.
The payment can be used however the beneficiaries choose.
Common uses include:
Unlike income protection insurance, life insurance is designed to provide long-term financial security for those left behind.
Not everyone requires life insurance.
However, it becomes increasingly important when other people rely on your income or financial support.
Life insurance may be worth considering if you:
If no one would suffer financially following your death, your insurance needs may be significantly lower.
There is no universal amount.
The right level of cover depends on your personal circumstances.
Things to consider include:
Rather than selecting a round figure, it is often more helpful to calculate the financial impact your family would face if your income stopped tomorrow.
Following the loss of a partner, families often need to fund:
Many people underestimate the amount of income their family would require over many years.
Many Australians hold life insurance inside their superannuation fund.
Advantages can include:
However, there can also be disadvantages.
These may include:
Whether insurance inside super is appropriate depends on your objectives and circumstances.
Personally owned policies may provide:
The right ownership structure depends on your financial situation and estate planning objectives.
Some of the most common mistakes include:
Life insurance should evolve as your life changes.
A review may be appropriate when you:
Even if nothing significant changes, reviewing your insurance every few years can help ensure it still aligns with your circumstances.
No one enjoys paying insurance premiums.
But most people who hold appropriate insurance don't buy it because they expect to claim.
They buy it because they want certainty that the people they care about would remain financially secure if the unexpected happened.
Possibly.
If someone would suffer financially following your death, insurance may still be appropriate.
Yes.
Many Australians hold multiple policies, although they should understand how they interact and whether the combined cover is appropriate.
It may be.
However, many people discover their default cover is lower than they actually require.
Insurance should only be cancelled after carefully considering whether it is still required and ensuring replacement cover is in place where appropriate.
About the author
Founder & Principal Financial Adviser
Josh Hampton is the Founder and Principal Financial Adviser at Hampton Wealth Management, helping professionals, families and retirees make confident financial decisions.
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Read ArticleGeneral Advice Warning. General information only, this website does not consider your personal circumstances. Before acting on any information, you should consider whether it is appropriate for your objectives, financial situation and needs. The Hampton Group Australia Pty Ltd T/A Hampton Wealth Management is a Corporate Authorised Representative of Beryllium Advisers Pty Ltd (AFSL 528250). Josh Hampton is an authorised representative (1002846) of Beryllium Advisers Pty Ltd (AFSL 528250). Prepared 5 August 2026. Last Reviewed 6 August 2026.
The right insurance strategy is about more than selecting a policy. It should reflect your family, debts, income, long-term goals and overall financial plan. If you'd like to review your existing cover or understand whether it still meets your needs, we'd be pleased to arrange a complimentary initial meeting.
