While no one likes to think about dying, being insured can allow you to get on with life knowing that, should the worst occur, your family won’t suffer additional financial burden along with the emotional stress.
Without life insurance your family may be forced to move from their home, away from their friends and support networks, at a time when they need them most. With Life Insurance, if you are diagnosed with a terminal illness you may be able to access your payment immediately, easing your financial burden before you have passed away.
When getting a life insurance quote, as with all purchases, shop around for the best quote, coverage amount, and terms & conditions. Life insurance premiums vary according to age, gender, and whether you smoke or not. Premiums also increase as the amount of cover goes up. The most common, and cheapest, type of life insurance is 'term life', which pays out a lump sum to your dependents if you die. Keep in mind, the younger you are when you take out the plan, the less expensive the monthly payments will be. So don't put off the decision to start a policy!
It is important to check that your life insurance policy is 'guaranteed renewable'. This means that the policy can still be renewed if you become seriously ill. If the policy is not renewable, the provider may reject your renewal and, with ill health, it will be virtually impossible for you to find cover with another provider.
In some cases you may be asked to take a medical test, which can include blood tests, in other cases you can buy Life Insurance policies directly over the internet without the need for these tests. Just make sure you know what is and isn’t covered.
Comparing life insurance policies
A company like iselect compares different life insurance plans, but keep in mind, it does not represent ALL the policies and companies available. So shop around for the best plan! If you need help a financial planner can also assist you with Life Insurance.
There are some reputable life insurance companies in Australia but Prepare for Australia does not promote any life insurance company directly. However, our partner ANZ does offer both financial planning and direct life insurance and you can find out more.