Life insurance helps to provide for your loved ones, should you die in an accident or from an illness. It’s a way to protect the people who depend on you to look after them. Here are the top 9 considerations when thinking about life insurance:
1. Do I need life insurance?
If anyone depends on you financially, you should consider life insurance. This doesn’t just mean a spouse, or children, but any person (or pet) who would be financially impacted if you weren’t here.
2. How much life insurance cover do I need?
You should think about your final expenses including debts, mortgages and planned education costs. It’s about helping your loved ones by not adding a financial burden to the emotional strain of losing you. The right insurance for you doesn’t have to cost a lot – depending on your situation, a simple, no-frills policy can have fairly low premiums while giving you peace of mind.
3. What type of life insurance do I need?
There are different types of life insurance like Trauma, Critical Illness, Total and Permanent Disability, Income Protection and Life Insurance (which pays out a death benefit if you die). They cater for different life-altering scenarios which would impact your financial dependents. It’s a good idea to visualise each scenario in practical terms, however uncomfortable the idea may be, so you’re clear about the level of cover you would like to have.
4. What will the cover include?
The dollar value attached to insurance premiums is not the only indicator of value. Insurance policies from two different providers may seem the same, based on price, but you need to check whether the cover options can be customised to meet your needs. The Product Disclosure Statement will have all the details, so it’s important to make sure you understand the cover you’re paying for. You don’t have to do it alone; Insuranceline’s friendly Insurance Representatives are here to explain anything you need to know.
5. Check what insurance is included in your super fund.
Many superannuation funds, including default employer super funds, offer some life insurance like death benefits and Total and Permanent Disability (TPD). Insurance in super can be more cost effective than taking out a separate insurance policy yourself, and you can always add to the cover either through your superannuation fund or another policy.
6. How much should my cover be?
Cover and cost should both be taken into account when deciding the right insurance product (and premium). If you’re driven by cost, and try to find the lowest premium, you may end up with cover which doesn’t meet your needs. If you go overboard on the level of cover you want, you may have to pay premiums which make it difficult to meet your current financial commitments. Online resources, like Insuranceline’s Quick Quote service can help work out the right balance for you, and so can talking through the options over the phone on 13 77 87.
7. What to look for in an insurance company?
Not all insurers are the same. An easy application process and good customer service should be a given with your chosen insurer. But to make sure you’re choosing an insurer who will be there when you need them, find one with a good reputation – not just within the market, but in the type of cover you want. Industry awards, like Canstar, can help highlight the benefits of different companies.
8. Talk to people while you research insurance options.
Online tools and websites can help give you an idea of the types of policy and cover you need, but there are a few people you should talk to before making a decision about your life insurance. You should speak with either an insurance broker or financial planner, because they can help you through the fine print, direct you to options you may not have considered, and guide you through the underwriting process. Be sure to involve your family, particularly your partner, in your decision-making process because they’re the ones who will be impacted.
9. Make a considered decision, but decide when you know enough.
Exploring life insurance options can feel overwhelming. Choosing a simple policy which will meet your needs is definitely preferable to delaying the decision. In the end, it comes down to you and finding the peace of mind knowing you’re protecting your family your way.
Products issued by TAL Life Limited ABN 70 050 109 450 AFSL 237848. Involuntary Unemployment Cover issued by St Andrew’s Insurance (Australia) Pty Ltd ABN 89 075 044 656 AFSL 239649.