Getting life insurance is a smart decision, but settling for any ol’ policy isn’t! If you want to make sure that you and your loved ones have all the benefits they need, you need to follow these 7 tips:
1. Look for an early payment option
If you’re simply getting a term life insurance policy — without trauma insurance, TPD insurance, or income protection insurance bundled along with it — you need to make sure that you’re covered in case you’re ever diagnosed with a terminal disease. An early payment option does exactly what the name implies by paying out benefits BEFORE you die. It comes with many policies, but it’s not automatically included, so read the fine print before you sign on the dotted line.
2. Look at your family
Does your wife work? If you got gravely ill or died, would she be able to make as much money as you did? What about your kids? Would there be enough money to send them to college if you suffered some kind of injury or illness? There are so many different types of Australian life insurance that you have to really do your homework to make sure you’re getting the right policy.
If you’re single and in the market for a life insurance policy, just remember that you’ll have to shop around again if you ever get married or have children! If you’re currently attached, there’s a lot of different types of couples life insurance to look at. Make sure that you choose one that will protect your family in the event of something terrible happening.
3. Look at your kids
It’s never too early to buy life insurance! In fact, there is special life insurance for children that you can buy when your kids are between the ages of 2 and 17. That way, in case one of your kids suffers an accidental death or an injury or illness that results in paralysis, blindness, deafness, major head trauma, or the loss of a couple limbs, it won’t be a massive financial hardship.
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You’re children’s life insurance will cover them until they turn 21. And, if your kids decide to convert their childhood cover into an adult policy, most insurance companies will make it easy to do. As an added benefit, some of these policies have cash value — meaning that your kids can use it to help pay for college!
4. Look at the cover itself
The goal with any life insurance policy is to have a high enough sum of benefits to meet your needs — without paying for TOO much. After all, the more benefits you have, the more you’re going to spend in premiums. The last thing you want to do is drain your monthly budget because you’ve overestimated your needs!
Before you get your policy, figure out how many dependents you have and what kind of financial needs they’ll have if something happens to you. Then, add on some extra money for funeral expenses. The end result should tell you how much cover you need.
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5. Look for exclusions
Every life insurance policy is going to exclude SOMETHING — meaning that the insurance company won’t pay for it. For example, if your son was born with a certain defect that caused him to lose the use of his legs, a child life insurance policy won’t pay for his expenses. However, if he lost the use of his legs after a bad case of meningitis, he’ll be covered. You need to know what’s excluded in every potential policy so that you don’t wind up with any surprises later!
6. Look at the calendar
If you’re over 50, it can be nearly impossible to qualify for “regular” life insurance. Luckily, senior life insurance was specifically designed for people in your age bracket! In many cases, you can get a senior policy without any medical tests or interviews.
7. Look for premium changes
If your policy has “stepped payments”, it means your premiums will get more expensive as you get older. “Level payments”, on the other hand, stay virtually the same no matter how old you get. Knowing the difference can mean getting a life insurance policy that’s affordable over the long haul — or winding up with one that isn’t!
If you’re looking for a life insurance policy, head here to get a quote that can cost as little as $15 per month.
When you’re shopping for life insurance, it’s important to compare the policies and determine which is best for you using the 7 tips listed above. Head over here to compare policies in your area.