Life Insurance Cover
Obtaining life insurance cover is one of the most important things you can do for your family, and the affordable premiums make the cover a cost effective way of protecting your family’s financial security.
Life insurance cover comes in a number of different guises, but in this article we will be focusing on the most common type of life cover available in Australia – term life insurance.
What is life insurance cover?
Life insurance covers you in the event that you die or are diagnosed with a terminal illness. The funds can be used for any purpose you or your family sees fit, but is generally used to provide financial support and stability to those you’ve left behind.
The amount of life insurance cover your have is decided upfront when taking out the policy, and can also be increased as needed, provided that your health hasn’t changed adversely since taking out the original policy.
Deciding on the amount of life insurance cover required is a personal decision, and depends on your own circumstances, as well as your needs and objectives. Some people opt for a small amount of cover that will get their family through the first couple of years, whilst other insist on a level of live insurance cover that will take care of their loved ones for the rest of their lives.
How much does life insurance cover cost?
The cost of your life insurance cover depends on a number of different factors. Information such as your age, gender, occupation and health will affect the premium, and of course the amount of cover will also affect the premium. Essentially the more cover you require, the more your life insurance will cost.
Applying for life insurance cover
The first step in the process is to decide on how much cover you need. If you are unsure, there are a number of life insurance calculators available online, or you can seek the services of a licensed financial adviser.
Next you need to find a suitable provider for your life insurance cover. There are a number of online services that can compare the features and costs of different life insurance policies, and these services can help to make the decision making process much easier. A financial adviser will also be able to assist in selecting an appropriate insurer for your needs.
The application process will vary depending on how you apply. If applying for your life insurance cover through an online service or directly via an insurer’s website, the whole process can be completed from the comfort of your own home. Some people prefer to deal with a financial adviser, who can complete either a paper based or online application with you.
Depending on a number of factors such as your age, medical history and the amount of life insurance cover applied for, the insurance provider may come back with a list of medical requirements.
Sometimes this can be a simply report from your doctor without you having to visit them, whilst in more complex cases you may be required to undergo blood test or even a full medical exam. For the average life insurance cover applicant with no medical issues, generally no medical exam or blood test will be required.
Reviewing your life insurance cover
Once you life insurance cover is in place it is important to make sure it keeps up with changes in your circumstances. The birth of a child or an increase in your debt are both classic examples of when your life insurance should be reviewed.
By taking out life insurance cover and keeping it up to date you will be going a long way towards securing your family’s financial future.
