Life Insurance

No-one wants to leave their family in financial distress when they pass. Life insurance provides assurance and security to many people that their family will be looked after when they are in the here-after. While the concept sounds simple enough, securing the right policy for you can be far from simple.

There is a plethora of insurance companies that offer life insurance policies and that is arguably the source of many of the issues. Confusion is common amongst people buying life insurance because they may have pre-conceived ideas of what will be covered and then their family or beneficiaries get a rude shock when they only discover the misunderstanding when it is too late.

The recent COVID-19 pandemic has also revealed flaws in some policies with policy holders not covered for this disease.


Protection Events

You can select a life insurance policy or product that provides protection from a number of possible eventualities:

  • Life Cover: this type of policy pays out a lump sum when you pass away, but there may be conditions over how you die. Suicide for example, is rarely covered by life insurance.
  • TPD: this type of policy pays out a lump sum in the event of you being totally and permanently disabled. The monies are designed to assist with costs associated with living and rehab.
  • Trauma insurance: cover for if you are diagnosed with what would be considered a major illness.
  • Income Protection Insurance: this type of policy will pay a part of your income if you are unable to work.

Considerations

  • Ensure you receive a product disclosure statement from the insurer and check every detail of what you are and are not covered for under the policy, before you commit.
  • Will your premiums change over time, ie increase or decrease as your age.
  • Are you covered for accident and other events incurred outside your home country, ie on holiday in another country.
  • If you do sustain an event overseas, will the policy cover the associated costs.
  • Weigh up the cost of the policy against your household budget and any alternatives to saving for this purpose.
  • Always check if your superannuation already contains an insurance policy component.

Due to the large number of insurers offering life insurance policies, it may be advisable to engage the services of an independent, professional, licensed insurance broker to assist you with selecting the policy that best suits your purpose.

We know insurance brokers that can assist you. If you would like their contact details, please get in touch with us.