How to choose the best life insurance policy

The benefit of having Life insurance is that it covers your financial obligations in the event of your death. Such as a mortgage, your kids’ college/university fees and other recurring expenses.

The main  type of Life Insurance available in Australia is Term insurance. Whole of Life Insurance is no longer available in Australia.

Pros of Term Life:

• Inexpensive
• Some select term life insurance policies give you the flexibly of choosing how long you want the coverage – from 5, 10, 15, 20 or even 30 years

Cons:

• Does not gain any value
• Expires

TERM insurance is simple, affordable coverage you buy for a set period of time.

Term Life can be a simple way to afford coverage. However, if you need life insurance for a short period of time Term Life may be your best option.  Nevertheless, having life insurance is important especially if you have a family that is dependent on your salary.

In choosing the best policy you may want to ask yourself these questions:

• How much can you afford to spend monthly for insurance?
• Do you want insurance for a specific amount of time or permanently?
• Do you want the flexibility to change your death benefit amount at any given time?
• Do you need savings to supplement your retirement?