With things getting more and more expensive in Australia, it is paramount to ensure you’re getting the best out of everything you pay for. Life insurance is simply something we see going out of our accounts every month, but what are we actually paying for, and how do we know we need it? No matter how many comparison sites we head to and people we speak with, the only thing that gets you your money’s worth with life insurance in Australia is finding a tailored solution.
We want to walk you through a few things you should definitely consider when purchasing or reviewing your life insurance policy. Firstly, we will start with what a basic policy should cover, discuss some essential additions, and explain how you can avoid paying over the odds.
Basic life insurance policies: What it will usually cover
Standard life insurance in Australia is usually a pretty self-explanatory package. There are always a few things included that may not be essential, but every basic policy should at least include death cover, terminal illness cover, and funeral advancement benefit.
Death cover – This is the single payment that will be paid to loved ones after your passing.
Terminal illness cover – You are entitled to an early payment if you are diagnosed with a terminal illness.
Funeral advancement benefit – This takes a portion of the final payout and releases an advanced payment to cover funeral costs.
What else should be included in a good life insurance policy?
While the fundamental components of a basic policy offer security and peace of mind in case of death or critical illness, there are things you can do to comprehensively safeguard yourself and your loved ones. Australians may have some of these additions included in their work insurance policy or Super, but it doesn’t hurt being extra safe.
TPD cover – This cover offers a lump sum payment if injury or illness causes a disability and you cannot work anymore.
Income protection – This can subsidise a percentage of your salary if you cannot work.
Trauma – This cover provides a lump sum payment upon diagnosis of terminal illness or if you suffer from a stroke, heart attack, or something similar.
Dependents – If you have children, it doesn’t cost much more to include them in your insurance package.
One final tip to get the most out of life insurance in Australia
To put it simply, the best thing you can do to reduce costs is to get life insurance while you are young and do your best to be healthy. In Australia, multiple things can affect the price of life insurance, but the primary ones are age & gender, health & lifestyle, and work. Of course, the more you want out of your policy, the more the price will increase. It is essential to go with an Australian insurance provider you can trust, so do some research. We hope this article can guide you if you are considering purchasing or reviewing your policy. Remember, it may not always feel worth it, but life insurance may be the wisest purchase of your life.
Source: TG Daily – How To Know You’re Getting The Best Out Of Your Life Insurance Policy