Many Australians claim that theyve had poor experiences with life insurance in the past. However, financial advisors are warning that this shouldnt deter Australians from taking-out life insurance that can protect them from unforeseen death and accidents.
The biggest concern Australians have is with cancelling a life insurance policy.Most people can easily obtain health insurancewhen they are young but as you get older and your health deteriorates, health provider become less willing to assume the risk of having you as a client.
Life Insurance Sources
There are three different ways that life insurance can be taken out. These being as follows:
1.Group Insurance This is typically associated with a super fund, which can allow you to get cheaper premiums due to associations having greater member numbers. But, when you need to make a claim you will find that you will have to deal with a super fund representative rather than the actual insurance company.
2.Financial Advisers or Insurance Brokers Working directly with a financial adviser or an insurance broker, will enable you to get competitively priced premiums. The adviser or broker will be able to compare policies, they will also liaise with the insurance provider on your behalf and negotiate your policy terms. But, youll be limited to the pay a commission for the service, which is typically included in your premium.
3.Dealing Directly with the Insurer According to a recent industry survey, there was a sizeable gap between customer perceptions of how the claims process for insurance should be and their actual experience. However, retail policies provide customers with the highest quality contracts, and have the highest number of claims that get paid out. Ironically, these types of policies are often the cheapest.
According to industry associations around $7.2 billion in life insurance claims are paid-out annually to Australian families. For many families these pay-outs allow them to recover from serious accident or illness, or time to grieve and maintain their financial capacity after a loved-one has passed away.
Choosing the Right Insurance Policy
Your insurance policy should give you and your family peace-of-mind, be cost-effective and provide you and your family with enough cover to reduce any financial burden in the event of accident or death. There are many different types of life insurance cover that you can take-out.
Three of the most common are as follows:
1.Single or joint cover Single cover provides an individual with insurance, while joint cover protects two people. However, joint cover will only typically pay-out on one person, the first to pass-away. It does not usually pay-out on both, should both parties pass at the same time. If youre wishing to cover both parties, then an individual policy is needed.
2.Level term A policy for a set amount over a fixed-term. This is typically paid-out as a lump when the policy holder passes.
3.Mortgage protection This type of cover is used to pay off any mortgage debt should the policy holder pass away. Therefore, the policy value decreases as mortgage debt decreases over the term of the policy.
If you are interested in knowing about other types of life insurance policies, then please contact an eChoiceinsurance broker. They will be able to let you know what other insurance options are available, and what is suitable for you and your current situation.
Why Take Out an Insurance Policy?
Life insurance reduces financial stress for your loved-ones should you pass away. Your life insurance can help your family pay-out your debts, bills and pay for any associated costs, such as funeral arrangements. There are many different types of policies, many of which can be tailored to suit your needs and individual financial circumstances.
Do you want to know more about your life insurance options? If you said YES, then contact eChoice, we can help YOU find the right policy for you.
Written by eChoice
Since 1998, eChoice has helped more than 50,000 Australians secure a home loan through its network of over 25 lenders and hundreds of loans. Best of all our service is cost and obligation free!