When taking out like insurance it is important to compare policies to ensure you are obtaining a good policy that provides value for money.

There are plenty of factors to consider, and in today’s article we will run through some of the more important factors to look at when comparing Australian life insurance policies.

Features and Benefits

The features and benefits of most term life insurance policies are fairly similar, however there are some important differences that you should look at when undertaking a comparison.

All term life insurance policies will payout upon your death, and the majority will also payout upon diagnosis of a terminal illness that leaves you with less than twelve months to live.  This is fairly standard across most policies in Australia, but it worth comparing before making a decision.

The life insurance policies issued by all of the major insurers will provide cover for suicide, however any claim for this reason will be excluded for the first thirteen months of the policy.  It is worth comparing the suicide cover between policies, especially if taking out a policy from a lesser known insurance company.

A popular option with life insurance in Australia is accident cover.  This extra included in some policies allows for additional claim payments when you suffer an accidental injury.  The terms of this cover can differ greatly between insurers, so a proper comparison will have to be completed if this option is important to you.

Premiums

One of the most common areas for comparison with life insurance is the premium.  Term life premiums don’t tend to differ too much between the major insurers, but it is worth doing your research to ensure you’re getting a good deal.

Although we all want the cheapest premium, you need to ensure that the life insurance policy you choose still has the appropriate features and benefits for your needs.  There’s no point getting the cheapest policy if it’s not going to meet your requirements at claim time.

There are a number of different services that provide life insurance premium comparisons.  Financial advisers have access to this data, and there are also a number of comparison websites that can calculate and display the relevant premiums.

Insurance Company

It is important to choose a life insurance company that you feel comfortable with.

All life insurance companies are regulated by the government department APRA (Australian Prudential Regulation Authority) which helps to ensure the financial strength of insurers, however this doesn’t guarantee that your claim will be paid.

Generally there isn’t much to debate when it comes to a life insurance claim, however it pays to use an insurer who has a solid reputation in Australia for paying claims in a fair and timely manner.  The last thing you want to leave your family with is a fight with your life insurance company.

Comparing Policies

When performing a life insurance comparison it is important to consider the cost of the cover, whilst still ensuring that the policy will meet your needs and is with an insurer that you can trust.