Life Insurance Comparisons
When choosing a life insurance policy it’s always a good idea to do a few comparisons between the different insurance providers and their policies.
Life insurance comparisons can be done in a few different ways. Traditionally you would speak with a financial adviser who would do the research and comparisons for you, but today many people are doing their own research using the internet.
Most of the life insurance providers have their own comprehensive websites that give you a great deal of information. You can also obtain the PDS (Product Disclosure Statement) which is required by law to provide you will all the relevant information on each policy.
There are now also a number of websites which allow you to do life insurance comparisons online. Some websites will only compare the premiums, whilst others will also allow you to compare the features and benefits of life insurance policies.
When comparing life insurance policies there are a few areas to pay particular attention to, and these are the factors that need to be compared most closely.
Life Insurance Companies
One of the first comparisons you will need to make is between the different life insurance companies and providers.
Many of the life insurance companies offering insurance in Australia are Australian owned, however there are a growing number of foreign owned insurance companies moving into the Australian market.
Of the Australian life insurance companies, the majority of them are owned by large banks. For example MLC is owned by the National Bank, OnePath is owned by ANZ, Comminsure is owned by the Commonwealth bank and Asteron is owned by Suncorp.
Whether you go with a foreign owned, Australian owned, or Australian bank owned life insurance company is really up to you. There is no hard evidence that one type is better than the other, but certainly many Australians prefer to stick with a name they trust.
Insurance Premiums
The most important factor for many Australians when taking out insurance is cost. There is nothing wrong with life insurance comparisons based on cost, but you still need to ensure the cover is going to meet your needs and objectives.
Life insurance premium comparisons can be obtained fairly easily through life insurance websites and financial advisers.
Cost is certainly important in today’s world of high living costs, but a cheap life insurance policy isn’t going to be good value if it’s not there when you need it at claim time.
Features and Benefits
For a term life insurance policy there aren’t many major differences from one insurance provider to the next, as all policies will pay out based on your death or diagnosis of a terminal illness.
Although the foundations of life insurance policies are generally the same, comparisons can still be made around the extra features and benefits.
Some policies include additional assistance in the form of accidental injury benefit, advancement for funeral expenses and financial planning advice benefit. Although these extras may not be particularly substantial, they are worth chasing if you can have them included for no additional premium.
Comparing Life Insurance
As we can see there are a number of areas to be considered when undertaking life insurance comparisons, but ultimately you are looking for a policy from a reputable insurance company that you are comfortable with, and that provides good value premiums along with a few extra benefits where possible.