There are some conversations that are easy to postpone. Life insurance is often one of them.
You may have thought about it after buying a home, starting a family, taking on a business loan or watching someone close to you experience an unexpected illness or injury. You know you should probably do something, but you are not sure where to begin. As more time passes, you may even feel slightly embarrassed that you have not raised the subject with your partner or spoken to your Financial Adviser.
That feeling is more common than you might think.
Life is busy, and conversations about illness, disability and death can feel uncomfortable. They ask us to consider situations we would rather not imagine. However, starting the conversation is not about expecting something bad to happen. It is about recognising what you have built and considering how the people who depend on you could continue if life changed unexpectedly.
The purpose is not simply to discuss insurance. It is to protect the lifestyle your family currently enjoys, the commitments you have made and, for business owners, the enterprise you have worked hard to establish.
Why the conversation matters
Most households rely on one or more incomes to meet everyday expenses. Mortgage or rent payments, groceries, school costs, utilities, transport and holidays all form part of the family lifestyle. A serious illness, injury or death can affect much more than household income. It may also create additional expenses, caring responsibilities and emotional pressure.
For business owners, the risks may extend further. The business may depend heavily on your knowledge, relationships, decision-making or ability to work. An unexpected absence could affect employees, customers, business partners, debts and the long-term value of the business.
You do not need to have all the answers before seeking advice. In fact, the first conversation is often simply about understanding what matters most and identifying the questions that need to be considered.
Top five tips for starting the life insurance conversation
- Begin with what you want to protect
Rather than beginning with insurance terminology, begin with your lifestyle.Ask your partner: “What would we want life to look like if one of us could no longer work?” Discuss the home, children’s education, regular living costs, debts, future plans and the support you may want to provide for family members.
For business owners, consider what would happen to the business if you or another key person were absent. Would the business continue operating? Who would manage your responsibilities? Are there loans, personal guarantees or partnership arrangements that need to be considered?
Starting with the things you value can make the conversation feel more relevant and less intimidating.
- Be honest about why you have delayed
There is no need to pretend you have everything organised. You might say, “I have been meaning to talk about this for a while, but I have not known where to start.”This simple admission can take the pressure out of the conversation. Your partner may have been thinking exactly the same thing. You do not need to make every decision immediately. The initial goal is simply to bring the subject into the open.
There is also no need to feel embarrassed when speaking with a Financial Adviser. Helping people begin these conversations is part of their role.
- Gather a basic picture of your finances
Before meeting with an adviser, it can help to collect some basic information about your household and business finances. This may include your income, regular expenses, debts, savings, superannuation, existing insurance arrangements and major future commitments.You do not need to create a perfect financial plan. A general overview can help your adviser understand your current position and identify areas that may require further discussion.
It may also uncover existing arrangements that you had forgotten about or highlight gaps between the support currently available and the lifestyle you would want your family to maintain.
- Ask practical, everyday questions
You do not need to understand technical language before the meeting. Ask questions in your own words, such as:“What would happen to our household income if I could not work?”
“How would the mortgage and regular bills be paid?”
“What support would be available if one of us became seriously ill?”
“What would happen to the business without me?”
“How often should our arrangements be reviewed?”
A good advice conversation should help you understand your choices without making you feel rushed or overwhelmed.
- Treat the first meeting as a starting point
The aim of the first discussion does not have to be an immediate decision. It can simply be an opportunity to clarify your priorities, understand your current position and identify the next steps.Personal circumstances change over time. Families grow, debts change, incomes increase, businesses expand and priorities evolve. Protection arrangements should therefore be reviewed regularly, particularly after major life events.
The hardest part is often beginning. Once the conversation has started, the process can feel far more manageable.
Seeking professional financial advice can help you understand the risks relevant to your household or business and consider an appropriate way forward. The important thing is not to remain silent because you feel uncertain or embarrassed. Starting the conversation today may be one of the most valuable steps you take to protect the people, lifestyle and business that matter most.
If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.
This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.
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Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Please consider whether the information is appropriate to your circumstance before acting on it and, where appropriate, seek professional advice.