Life insurance provides the financial means to preserve your way of life, or that of your family, in the event of an accident, serious illness or even death. But what things should you consider before you embark on your search for cover.
1.Don’t always buy the cheapest
If your on a budget remember that premiums change depending on your age, they may rise as you get older so you want to consider the average premium paid over the period the insurance is to be in force.
2.Avoid underwritten at claim?
We have all seen the commercials, no medicals, guaranteed acceptance. If you have a previous medical condition that was known at the time you put the policy in place, and don’t tell the insurer, it may void your claim, leaving your family financially exposed. If you do take a policy that is underwritten at claim, read the terms and conditions carefully – What are you covered for?
All policies are different, some may be easy to upgrade or change, othesr may have business extensions to suit your circumstances. Does it have a financial planning benefit? Can you increase your cover without further medical evidence? Is there an accidental injury benefit?
4. Understand the insurers ability to pay claims?
Understand the insurers ability to pay claims? The Australian Prudential Regulation Authority (APRA) oversees life insurers, the insurer you buy from should be on the APRA registered life insurers list
5. Don’t Over Insure
Check your super, does your super already have some life cover? If so how much cover do have? Then consider how much more will you need. Many brokers and direct insurers will suggest higher levels of cover than you actually need, know your numbers going into to the process.
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