What Changes Once You Have Dependants
Before kids or a mortgage, life insurance is mostly about not leaving debt or a funeral bill behind. Once you have dependants, the calculation shifts to something much larger: replacing your income and presence for years, not months.
The Two-Income Trap
Many families size their cover assuming both incomes continue — but if one partner dies or becomes permanently disabled, the surviving partner often can't work full-time and cover full-time care at once. Cover sized only around 'paying off the mortgage' frequently misses the ongoing cost of reduced working capacity for the survivor.
Cover for Both Parents — Even a Non-Earning One
It's a common and costly oversight to insure only the higher (or sole) income earner. A parent who doesn't earn an income still provides full-time childcare worth a genuine dollar amount to replace — many families underestimate the cost of formal childcare and household support that would be needed if that parent died or became disabled.
Trauma Cover for Kids
Some insurers include a child's critical illness benefit as standard (TAL is one), which pays a smaller lump sum if a dependent child is diagnosed with a serious illness — worth checking whether this is included or needs adding, since a sick child creates real cost and lost income for parents even without a parent themselves being the one insured.
Timing the Review
The biggest cover gaps tend to open right after a second child, a house upsizing, or one partner reducing hours to care for kids — each of these changes the numbers enough to warrant a fresh look rather than assuming the original policy still fits.
This page is for educational purposes and isn't personalised financial advice. Premiums, terms and eligibility vary by insurer, occupation and individual circumstances — always check the Product Disclosure Statement (PDS) before buying.