(and how life insurance can help them deal with those costs)
Although we don’t like to think about it, death is a part of life and it is important to consider how your family will be impacted. Dying in Australia is costly, however if you play your cards well you can help your family get through hard times with fewer financial problems. Some of these potential costs can include:
Funeral expenses- Dying in Australia isn’t cheap by any measure. The associated costs can quickly go into the five-figure region. Funeral costs alone can be well over $10,000.
Debts That You Leave Behind - Australia’s overall household debt situation is far from stellar, and this means that many aging citizens have at least some debt. Your family will need to take care of these debts, and if they are unable to, creditors are likely to go after them.
Medical and Home Care Bills – In a 2014 study, the average cost of passing away in hospital was found to be approximately $19,000 for those aged 50 and over.
Paying for Essentials - You probably don’t need anyone to tell you about the daily living costs in Australia. If a working parent dies, the rest of the family might find it hard to afford the essentials, and on top of this they are likely used to the life that your salary enabled.
Wills and Estate Planning - If you don’t have a will, there could be additional costs incurred by your family to finalise your estate, including the transfer of assets and other administrative costs.
Changing Bank Accounts and Mortgage - If you die before you pay off your mortgage, your spouse or family will have to satisfy the monthly payments, and this could put significant stress on their finances.
We highly recommend professional advice from one of our My Fortress financial advisers, who can help you work out all of these associated costs and discuss the importance of superannuation and insurances in supporting your family in the future.