Cheap term life insurance quotes can be found online
Cheap term life insurance quotes are one thing that many Australians can benefit from. There are so many term life insurance products that it can often be confusing trying to find the right one. But thanks to the internet, term life insurance quotes can easily be found and compared online.
When doing your research ensure you read sources from Australia, as the Australian life insurance industry is different to that of the U.S. and U.K. In Australia the only type of life insurance policy currently available is ‘term life insurance’, not universal or whole of life insurance.
Unlike foreign definitions, term life insurance in Australia refers to a life insurance policy usually held until age 99; where you remain covered as long as you pay your premiums. In the event of your death, your term life insurance policy pays a lump sum amount to your estate or to your beneficiaries, who are often your loved ones.
Finding cheap term life insurance quotes
Many online businesses offer deals on different types of insurance and cheap term life insurance is often one of them. With the Australian life insurance market becoming more and more competitive, you may find a number of cheap life insurance deals which offer comprehensive cover without compromising on quality of cover.
You may also like to look into TPD Insurance and Trauma Insurance. TPD Insurance pays a lump sum should you become totally and permanently disabled; whereas Trauma Insurance pays a lump sum in the event that you suffer a medical disease or condition as outlined in a product disclosure statement (PDS).
Comparing cheap term life insurance quotes
Here are a few things you should consider before deciding on which term life insurance policy to go with.
1. How much term life insurance coverage do you need?
2. Do you need TPD Insurance and/or Trauma Insurance as well? Would you prefer bundled or stand-alone policies?
3. Would you prefer to pay monthly or annual term life insurance rates?
4. Which life insurance premium structure would benefit you most, stepped or level?
5. Which life insurance company should you go with?
6. Will you need additional financial advice?
Cheap term life insurance quotes in Australia
The Australian life insurance market has closely shadowed the U.S. and U.K. where the many of their people often find and compare cheap term life insurance online. Online life insurance comparison services are in abundance overseas, and Australia is closely following suit.
If you prefer to pay for cheap life insurance rates then doing your research well will pay-off in the long term. Use as many resources as you can to find and compare cheap term life insurance quotes. Term life insurance rates all add up and if you can save on your monthly or annual premiums then you could potentially save hundreds if not thousands of dollars over the life of your policy.
For competitively priced policies that meet your needs speak to your financial adviser.
Wednesday, May 26, 2010
Sunday, May 2, 2010
Women need personal insurance too, not just men!
Underinsurance is a problem affecting all Australians. But women in particular are failing to protect themselves financially from the consequences of bad health.
Once upon a time term life insurance was something you only considered for the main breadwinner. And with low workforce participation rates for women, that was usually the husband.
These days you would probably expect a more even balance. But you might be surprised by how little things have changed.
According to Rice Warner Actuaries, women make up only 15% to 20% of insurance cover. That’s despite making up 45% of the workforce.
And the gender gap for life insurance doesn’t seem to be closing – in 2007 only about 1 in 4 insurance policies taken out were for women.
This is despite the fact women now earn 92% of male incomes – giving Australia one of the smallest gender wage gaps in the world.
It also suggests that the unpaid contribution of women, who are typically more likely to be primary carers for children and/or elderly relatives, is often ignored when it comes to term life insurance.
Single Women
Social trends indicate that women are staying single for longer than ever.
According to the Australian Bureau of Statistics (ABS), the median age of women marrying for the first time increased from 23.5 years in 1986 to 28 years in 2005. They also estimate that 26% of females will never marry.
This means more single women are earning significant incomes, and are often solely responsible for mortgages and other personal debts – putting the in a high risk category in terms of insurance.
Women with a Family
More women are combining primary care responsibilities with employment – demonstrated by the fact that 46% of women employed in 2003 worked part-time (as opposed to only 15% of men).
This highlights the growing need for personal insurance that covers both the financial and non-financial contribution women make to a household.
Insurance is also just as important for full-time home-makers, whose contribution is often just as expensive to replace if they get sick or injured.
Specific Types of Life Insurance Available for Women
Select insurers offer cover to meet the specific needs of women. These can include:
• Trauma Insurance
Trauma insurance is crucial for women in any life stage. It pays a lump sum benefit if you suffer from a medically diagnosed condition. The main types of medical conditions where a trauma insurance claim is made is heart attack, heart disease, stroke, and cancer.
With modern day technology available to detect early signs of cancer, treatment is often successful and there has been a much higher rate of survival. Trauma insurance can help pay for costly medical bills associated with treatment, and other costs like travel to and from treatment centers, alternative therapies, bills and living expenses.
• Trauma Cover with Baby Care Option
This type of cover provides cover for additional trauma conditions with benefits to help a family cope with the financial and emotional stresses of pregnancy complications. These can include things such as Complications of Pregnancy Benefit, Congenital Abnormality Benefit, and Death Benefit.
• Home-maker TPD
This type of cover is popular with women who are not in full-time work as it provides a lump sum of up to $1.5 million if the insured is permanently unable to perform normal domestic duties.
• Own Occupation TPD
For women who take time off work with maternity leave, some life insurance companies will allow the insured to retain their TPD definition even if the maternity leave is extended beyond 12 months.
• Child Cover
When children get sick or injured, it’s often their mother who takes the responsibility of looking after them. If that means taking time off work, this can increase the financial burden of childhood illnesses.
Some insurers offer cover for children over two years, and it is often premium FREE when added to a parents policy. It pays a lump sum if a child dies suffers one of a list of trauma conditions – helping a family cope financially during an already difficult time.
• Life Insurance
Life insurance pays a lump sum to your beneficiaries or your estate if you die. If you have any debt like a mortgage, or personal loans, life insurance is a must. It helps to ensure your financial burden isn’t passed onto your loved ones during a time of grief. Their financial future is secure, even if you are not there.
• Income Protection Insurance
Income protection insurance pays up to 75% of your salary from personal exertion should you become ill or injured and cannot work. Benefit payments are made after the selected waiting period, usually 30 days, however some waiting periods can be longer depending on your policy.
Sometimes called sickness and accident insurance, income protection insurance ensures your bills and daily living expenses are paid while you focus on recovering. You need to work at least 20 hours per week to be eligible for this type of cover, making income protection insurance suitable for part-time mums.
1 ‘Australians at risk’ – TNS/ Rice Warner, August 2006
2 OneCare policies written in 2007 by ING Life Limited
3 ‘Australian Social Trends, 2005’ – Australian Bureau of Statistics
4 ‘Australian Social Trends, 2007’ – Australian Bureau of Statistics
5 ‘Australian Labour Market Statistics, 2005’ - Australian Bureau of Statistics
Once upon a time term life insurance was something you only considered for the main breadwinner. And with low workforce participation rates for women, that was usually the husband.
These days you would probably expect a more even balance. But you might be surprised by how little things have changed.
According to Rice Warner Actuaries, women make up only 15% to 20% of insurance cover. That’s despite making up 45% of the workforce.
And the gender gap for life insurance doesn’t seem to be closing – in 2007 only about 1 in 4 insurance policies taken out were for women.
This is despite the fact women now earn 92% of male incomes – giving Australia one of the smallest gender wage gaps in the world.
It also suggests that the unpaid contribution of women, who are typically more likely to be primary carers for children and/or elderly relatives, is often ignored when it comes to term life insurance.
Single Women
Social trends indicate that women are staying single for longer than ever.
According to the Australian Bureau of Statistics (ABS), the median age of women marrying for the first time increased from 23.5 years in 1986 to 28 years in 2005. They also estimate that 26% of females will never marry.
This means more single women are earning significant incomes, and are often solely responsible for mortgages and other personal debts – putting the in a high risk category in terms of insurance.
Women with a Family
More women are combining primary care responsibilities with employment – demonstrated by the fact that 46% of women employed in 2003 worked part-time (as opposed to only 15% of men).
This highlights the growing need for personal insurance that covers both the financial and non-financial contribution women make to a household.
Insurance is also just as important for full-time home-makers, whose contribution is often just as expensive to replace if they get sick or injured.
Specific Types of Life Insurance Available for Women
Select insurers offer cover to meet the specific needs of women. These can include:
• Trauma Insurance
Trauma insurance is crucial for women in any life stage. It pays a lump sum benefit if you suffer from a medically diagnosed condition. The main types of medical conditions where a trauma insurance claim is made is heart attack, heart disease, stroke, and cancer.
With modern day technology available to detect early signs of cancer, treatment is often successful and there has been a much higher rate of survival. Trauma insurance can help pay for costly medical bills associated with treatment, and other costs like travel to and from treatment centers, alternative therapies, bills and living expenses.
• Trauma Cover with Baby Care Option
This type of cover provides cover for additional trauma conditions with benefits to help a family cope with the financial and emotional stresses of pregnancy complications. These can include things such as Complications of Pregnancy Benefit, Congenital Abnormality Benefit, and Death Benefit.
• Home-maker TPD
This type of cover is popular with women who are not in full-time work as it provides a lump sum of up to $1.5 million if the insured is permanently unable to perform normal domestic duties.
• Own Occupation TPD
For women who take time off work with maternity leave, some life insurance companies will allow the insured to retain their TPD definition even if the maternity leave is extended beyond 12 months.
• Child Cover
When children get sick or injured, it’s often their mother who takes the responsibility of looking after them. If that means taking time off work, this can increase the financial burden of childhood illnesses.
Some insurers offer cover for children over two years, and it is often premium FREE when added to a parents policy. It pays a lump sum if a child dies suffers one of a list of trauma conditions – helping a family cope financially during an already difficult time.
• Life Insurance
Life insurance pays a lump sum to your beneficiaries or your estate if you die. If you have any debt like a mortgage, or personal loans, life insurance is a must. It helps to ensure your financial burden isn’t passed onto your loved ones during a time of grief. Their financial future is secure, even if you are not there.
• Income Protection Insurance
Income protection insurance pays up to 75% of your salary from personal exertion should you become ill or injured and cannot work. Benefit payments are made after the selected waiting period, usually 30 days, however some waiting periods can be longer depending on your policy.
Sometimes called sickness and accident insurance, income protection insurance ensures your bills and daily living expenses are paid while you focus on recovering. You need to work at least 20 hours per week to be eligible for this type of cover, making income protection insurance suitable for part-time mums.
1 ‘Australians at risk’ – TNS/ Rice Warner, August 2006
2 OneCare policies written in 2007 by ING Life Limited
3 ‘Australian Social Trends, 2005’ – Australian Bureau of Statistics
4 ‘Australian Social Trends, 2007’ – Australian Bureau of Statistics
5 ‘Australian Labour Market Statistics, 2005’ - Australian Bureau of Statistics
Top 10 Life Insurance Quotes Tips
There are a few points you should consider when choosing term life insurance. Here we list some handy tips to help you make the right decision.
1. Do your homework - Leverage the power of the internet and educate yourself on the options available to you.
2. Make sure you buy enough life insurance coverage – you need to take into consideration all of your living costs, plus inflation. A general rule of thumb used in the industry is five to ten times your current yearly salary. But, that's just a rule of thumb. Everyone's situation is a bit different, and deserves a bit of research.
3. Get the right type of policy – getting the right policy will help come claim time. Generally speaking, if you have personal insurance cover through your super fund, you may find that it can take longer to make a claim. Whereas a policy taken through a life insurance company may be able to make a much faster claim - which can be important if you urgently need funds to cover medical costs. Also, a policy taken through your superannuation fund may not cover you for the right amount, which is also important come claim time because the last thing you need in a time of crises is to run out of money.
4. Read before you sign the dotted line - There are a variety of inclusions, exclusions, discounts, and other forms of "fine print" within a life insurance policy, and it's important to know what you are about to purchase. A common fine print item may be “No payment for pre-existing diseases: Diseases that were in existence before the commencement of the policy are not covered”.
5. Review your policy each year - There are a number of life events that could be cause to reassess the coverage and options of your life insurance policy. Personal financial changes, such as an increase or decrease in your overall assets, expenses, or income are one set of factors to consider. You may also consider other personal factors like a change in your overall health. There are also outside factors like inflation to consider.
6. Stay healthy - Many life insurance companies offer lower life insurance rates based on your good physical health. Factors like smoking, your cholesterol level, high blood pressure and other factors, like depression, can drive up the cost of your policy. It's also a good idea to get your weight under control, as it's also a factor that's used to determine eligibility for lower premiums.
7. Shop around - There are some insurance companies that have more liberal cholesterol guidelines as compared to their competitors. The same holds true for blood pressure. Also, with so many life insurance companies on the market and even more insurance products, it pays to shop around for the best discount.
8. Chat with a professional - Buying life insurance can be complicated, and there are many factors to consider in terms of coverage, discounts, and selection of an insurance provider. A good insurance adviser will have an eye for your personal situation including factors like your age, marital status, number of dependents, and your overall health. It's not impossible to do this on your own, but there's always value in consulting a Life Insurance Adviser.
9. Find the right policy that works for your life stage - There are many different types of life insurance products to suit many different life stages. Learning about the available options will provide you the most comfort and security.
10. Cover your spouse - Many insurers offer a discount if you sign up your partner. You can save from 5-10% off your monthly premiums if you take out a life insurance policy for both yourself and your spouse.
1. Do your homework - Leverage the power of the internet and educate yourself on the options available to you.
2. Make sure you buy enough life insurance coverage – you need to take into consideration all of your living costs, plus inflation. A general rule of thumb used in the industry is five to ten times your current yearly salary. But, that's just a rule of thumb. Everyone's situation is a bit different, and deserves a bit of research.
3. Get the right type of policy – getting the right policy will help come claim time. Generally speaking, if you have personal insurance cover through your super fund, you may find that it can take longer to make a claim. Whereas a policy taken through a life insurance company may be able to make a much faster claim - which can be important if you urgently need funds to cover medical costs. Also, a policy taken through your superannuation fund may not cover you for the right amount, which is also important come claim time because the last thing you need in a time of crises is to run out of money.
4. Read before you sign the dotted line - There are a variety of inclusions, exclusions, discounts, and other forms of "fine print" within a life insurance policy, and it's important to know what you are about to purchase. A common fine print item may be “No payment for pre-existing diseases: Diseases that were in existence before the commencement of the policy are not covered”.
5. Review your policy each year - There are a number of life events that could be cause to reassess the coverage and options of your life insurance policy. Personal financial changes, such as an increase or decrease in your overall assets, expenses, or income are one set of factors to consider. You may also consider other personal factors like a change in your overall health. There are also outside factors like inflation to consider.
6. Stay healthy - Many life insurance companies offer lower life insurance rates based on your good physical health. Factors like smoking, your cholesterol level, high blood pressure and other factors, like depression, can drive up the cost of your policy. It's also a good idea to get your weight under control, as it's also a factor that's used to determine eligibility for lower premiums.
7. Shop around - There are some insurance companies that have more liberal cholesterol guidelines as compared to their competitors. The same holds true for blood pressure. Also, with so many life insurance companies on the market and even more insurance products, it pays to shop around for the best discount.
8. Chat with a professional - Buying life insurance can be complicated, and there are many factors to consider in terms of coverage, discounts, and selection of an insurance provider. A good insurance adviser will have an eye for your personal situation including factors like your age, marital status, number of dependents, and your overall health. It's not impossible to do this on your own, but there's always value in consulting a Life Insurance Adviser.
9. Find the right policy that works for your life stage - There are many different types of life insurance products to suit many different life stages. Learning about the available options will provide you the most comfort and security.
10. Cover your spouse - Many insurers offer a discount if you sign up your partner. You can save from 5-10% off your monthly premiums if you take out a life insurance policy for both yourself and your spouse.
The value of financial advice for life insurance
When an individual suffers sickness or injury, or in the worst case scenario, death, their family should be able to focus on the recovery or grieving process, and not have to worry about the finances.
Why is life insurance advice important?
Financial advice becomes critical in a time of dilemma such as how to compare life insurance or what to do with the proceeds from a life insurance benefit payment.
Some life insurance companies will pay you an additional financial planning benefit under their life insurance policies, and sometimes for their trauma insurance or total and permanent disability insurance (TPD Insurance) policies.
There are certain terms attributed to these types of policies, so be sure to speak to your financial adviser to find out which life insurance policies offer this financial planning benefit.
Financial advice for life insurance
Leroy has a life, TPD and trauma cover policy with a sum insured of $500,000. He is unfortunately involved in a motorcycle accident and loses the use in both of his legs. He sees his financial adviser who restructures his financial affairs. Two years later, having not taken proper care of himself, Leroy suffers a heart attack. He is told by his doctor that he must take it easy.
Having ignored the advice of his doctor, Leroy dies three years later, leaving his grieving widow to pick up the pieces. She needs to determine the best way to invest his insurance proceeds and seeks financial planning advice. On each occasion that Leroy and his wife saw a financial planner, and the planner charged a fee for service, Leroy’s life insurance company reimbursed his family up to $5,000 after each claim.
Life insurance advice offering you value
The financial planning benefit is another way a life insurance company can help you in the event of sickness or injury. We encourage you to seek further advice to ensure that any insurance proceeds you receive are spent or invested wisely.
Why is life insurance advice important?
Financial advice becomes critical in a time of dilemma such as how to compare life insurance or what to do with the proceeds from a life insurance benefit payment.
Some life insurance companies will pay you an additional financial planning benefit under their life insurance policies, and sometimes for their trauma insurance or total and permanent disability insurance (TPD Insurance) policies.
There are certain terms attributed to these types of policies, so be sure to speak to your financial adviser to find out which life insurance policies offer this financial planning benefit.
Financial advice for life insurance
Leroy has a life, TPD and trauma cover policy with a sum insured of $500,000. He is unfortunately involved in a motorcycle accident and loses the use in both of his legs. He sees his financial adviser who restructures his financial affairs. Two years later, having not taken proper care of himself, Leroy suffers a heart attack. He is told by his doctor that he must take it easy.
Having ignored the advice of his doctor, Leroy dies three years later, leaving his grieving widow to pick up the pieces. She needs to determine the best way to invest his insurance proceeds and seeks financial planning advice. On each occasion that Leroy and his wife saw a financial planner, and the planner charged a fee for service, Leroy’s life insurance company reimbursed his family up to $5,000 after each claim.
Life insurance advice offering you value
The financial planning benefit is another way a life insurance company can help you in the event of sickness or injury. We encourage you to seek further advice to ensure that any insurance proceeds you receive are spent or invested wisely.
Life insurance quotes for seniors
Most of us, at some point in our lives, especially seniors will realize that owning life insurance is very important to ensure our sense of security. It can offer funds to support a spouse, pay debts and perhaps leave some money for grandchildren and loved ones.
Life insurance quotes for seniors can be gained from the internet or from life insurance advisers like xLife. The internet provides an excellent platform to compare different types of policies without having to visit or speak to multiple life insurance companies. Information from online is often quick to return, and you have the opportunity to ask questions that you may not understand when comparing different life insurance policies.
A specialist adviser that compares life insurance policies day in and day out, is often better qualified to identify important issues and can make meaningful recommendations for better life insurance policy coverage.
Types of life insurance policies for seniors in Australia
Term life insurance - The main type of life insurance available in Australia is term life insurance. Term life insurance pays a lump sum benefit to your estate or beneficiaries should you pass away. In Australia, the word ‘term life insurance’ usually means a policy you can hold until the age of 99 years (however refer to the product disclosure statement as each company can differ).
The cost of term life insurance for seniors depends on the answers you give in the life insurance application. Typical factors which can affect your premiums include your age, gender, smoking status and health. A medical exam may be required to show if you have a history of medical conditions. This in turn may increase your life insurance premiums if you have a number of conditions which may be classified as a higher risk. However each life insurance company will assess you on an individual basis so it pays to look around and compare policies.
An affordable term life insurance comparison is a good idea for anybody who is married or has children or grandchildren. Avoid narrowly defined life insurance policies that only cover specific loss of life, such as accidents, plane crashes or cancer as you might be limiting yourself.
Funeral insurance – this type of cover does not ask any medical questions, so it is another alternative if you have been declined for term life insurance due to health reasons.
Funeral insurance pays a lump sum benefit to beneficiaries should you pass away. Another positive factor is that the acceptance age is slightly higher at around age 79 years, giving seniors an alternative to term life insurance.
How much seniors should be insured for?
The most agreed upon rule of thumb is that an individual should be insured for about 10 times his or her annual salary. However seniors generally just want to cover any outstanding debts. Total assets are subtracted from the total financial obligations to determine the amount of life insurance needed. And with life insurance quotes for seniors it can give a better look into the choices you may have available to you.
Compare and save on life insurance for seniors
You may like to get a term life insurance and a funeral insurance comparison to make it easier to make a final decision. A life insurance adviser can review your needs, determine what you want your life insurance or funeral insurance to cover and go from there.
Life insurance quotes for seniors can be gained from the internet or from life insurance advisers like xLife. The internet provides an excellent platform to compare different types of policies without having to visit or speak to multiple life insurance companies. Information from online is often quick to return, and you have the opportunity to ask questions that you may not understand when comparing different life insurance policies.
A specialist adviser that compares life insurance policies day in and day out, is often better qualified to identify important issues and can make meaningful recommendations for better life insurance policy coverage.
Types of life insurance policies for seniors in Australia
Term life insurance - The main type of life insurance available in Australia is term life insurance. Term life insurance pays a lump sum benefit to your estate or beneficiaries should you pass away. In Australia, the word ‘term life insurance’ usually means a policy you can hold until the age of 99 years (however refer to the product disclosure statement as each company can differ).
The cost of term life insurance for seniors depends on the answers you give in the life insurance application. Typical factors which can affect your premiums include your age, gender, smoking status and health. A medical exam may be required to show if you have a history of medical conditions. This in turn may increase your life insurance premiums if you have a number of conditions which may be classified as a higher risk. However each life insurance company will assess you on an individual basis so it pays to look around and compare policies.
An affordable term life insurance comparison is a good idea for anybody who is married or has children or grandchildren. Avoid narrowly defined life insurance policies that only cover specific loss of life, such as accidents, plane crashes or cancer as you might be limiting yourself.
Funeral insurance – this type of cover does not ask any medical questions, so it is another alternative if you have been declined for term life insurance due to health reasons.
Funeral insurance pays a lump sum benefit to beneficiaries should you pass away. Another positive factor is that the acceptance age is slightly higher at around age 79 years, giving seniors an alternative to term life insurance.
How much seniors should be insured for?
The most agreed upon rule of thumb is that an individual should be insured for about 10 times his or her annual salary. However seniors generally just want to cover any outstanding debts. Total assets are subtracted from the total financial obligations to determine the amount of life insurance needed. And with life insurance quotes for seniors it can give a better look into the choices you may have available to you.
Compare and save on life insurance for seniors
You may like to get a term life insurance and a funeral insurance comparison to make it easier to make a final decision. A life insurance adviser can review your needs, determine what you want your life insurance or funeral insurance to cover and go from there.
Life insurance mistakes to avoid
Most of us know what life insurance quotes are: you pay a monthly or annual premium and in return the insurance company pays your nominated beneficiary or estate a lump sum when you die. Over the years life insurance has grown, with a multitude of policies to suit nearly every kind of need.
1. Buying Life Insurance From Mortgage Lenders When Arranging A Loan
Another common mistake is buying life insurance from a mortgage lender or bank who is lending the individual money to buy a home. Banks like to cross sell a variety of products to their customers, and when individuals seek financing for the purchase of a home, they suddenly become a captive audience to the bank who is making the loan. The financial institution will try and add on a variety of insurance products in addition to the mortgage or loan they are making, and the deals on offer may not always be the best deals that can be picked up were the individual to approach an insurance adviser or a specialist.
It is better to buy life insurance from a specialist financial adviser, largely because they have a better understanding of the products on offer, and how they compare to rival products and probably have a bigger offering.
Individuals should also not be afraid to make an adviser work for their money and feel no pressure to commit. Advisers may be commission driven and financial products such as life insurance provide remuneration to advisers through a commission structure.
2. Life Insurance Coverage through superannuation fund providers
Life insurance through your superannuation fund may seem like an easy option, but just make sure you read the fine print. A life insurance policy through your super fund may not cover you for the right amount. This means that if something does go wrong, you may be severely underinsured, leaving your loved ones with insufficient funds during an emotionally turbulent time.
3. Buying Life Insurance directly without underwriting
Life insurance quotes sold directly without underwriting, often sold aggressively via television advertising, may cost double compared to equivalent cover which is fully underwritten.
Another point to note is that non-underwritten type life insurance policy often have exclusions on previous medical history.
1. Buying Life Insurance From Mortgage Lenders When Arranging A Loan
Another common mistake is buying life insurance from a mortgage lender or bank who is lending the individual money to buy a home. Banks like to cross sell a variety of products to their customers, and when individuals seek financing for the purchase of a home, they suddenly become a captive audience to the bank who is making the loan. The financial institution will try and add on a variety of insurance products in addition to the mortgage or loan they are making, and the deals on offer may not always be the best deals that can be picked up were the individual to approach an insurance adviser or a specialist.
It is better to buy life insurance from a specialist financial adviser, largely because they have a better understanding of the products on offer, and how they compare to rival products and probably have a bigger offering.
Individuals should also not be afraid to make an adviser work for their money and feel no pressure to commit. Advisers may be commission driven and financial products such as life insurance provide remuneration to advisers through a commission structure.
2. Life Insurance Coverage through superannuation fund providers
Life insurance through your superannuation fund may seem like an easy option, but just make sure you read the fine print. A life insurance policy through your super fund may not cover you for the right amount. This means that if something does go wrong, you may be severely underinsured, leaving your loved ones with insufficient funds during an emotionally turbulent time.
3. Buying Life Insurance directly without underwriting
Life insurance quotes sold directly without underwriting, often sold aggressively via television advertising, may cost double compared to equivalent cover which is fully underwritten.
Another point to note is that non-underwritten type life insurance policy often have exclusions on previous medical history.
Life Insurance Calculators
The internet is a great source of information when trying to find out which life insurance policy best suits your needs. There are news articles, educational content, life insurance company websites, and life insurance comparison websites. However one particular tool which should be used with caution is the online life insurance calculator.
Life Insurance Calculator Types
There are a variety of different types of life insurance calculators found online, both U.S. and Australian based. These vary from simple and crude life insurance calculators, to more comprehensive life insurance calculator types.
The purpose of these online life insurance calculators is to help you identify how much life insurance coverage you need. Obviously finding the right amount will give you peace of mind knowing that your loved ones will have enough funds should you pass away.
Simple Life Insurance Calculators
A simple online life insurance calculator will usually calculate the sum you should be insured for by multiplying the income you earn by ten. As such, a simple online life insurance calculator will ask you to enter the following data:
• Your income
• Your age
Comprehensive Life Insurance Calculators
On the other hand, more comprehensive online life insurance calculators will usually try to calculate the gap between your needs and the amount of cover you may already have (if any).
These more comprehensive life insurance calculators will ask you to enter your age and income amount, as well as the following information:
• Outstanding mortgage and loans
• Living expenses
• The number of years you would like to cover your living expenses for
• How much life insurance you currently have
• The cash value of assets you would consider selling quickly to cover any costs in the event of your death
A Word of Warning on Life Insurance Calculators
While life insurance calculators will give you an approximate idea on the sum you should be insured for, online life insurance calculators should not be solely relied upon for the purposes of making a decision in relation to life insurance. This is because everyone’s situation is different, and as such the amount of life insurance needed will differ from person to person. Another negative factor is that these online life insurance calculators do not do is help you identify which type of life insurance policy is best for your situation, such as stepped or level life insurance policies.
You should consider obtaining advice from a financial adviser before making any financial decisions. A qualified financial adviser should be able to give you more accurate life insurance quotes, and can compare a number of policies from the top life insurance companies in Australia.
Life Insurance Calculator Types
There are a variety of different types of life insurance calculators found online, both U.S. and Australian based. These vary from simple and crude life insurance calculators, to more comprehensive life insurance calculator types.
The purpose of these online life insurance calculators is to help you identify how much life insurance coverage you need. Obviously finding the right amount will give you peace of mind knowing that your loved ones will have enough funds should you pass away.
Simple Life Insurance Calculators
A simple online life insurance calculator will usually calculate the sum you should be insured for by multiplying the income you earn by ten. As such, a simple online life insurance calculator will ask you to enter the following data:
• Your income
• Your age
Comprehensive Life Insurance Calculators
On the other hand, more comprehensive online life insurance calculators will usually try to calculate the gap between your needs and the amount of cover you may already have (if any).
These more comprehensive life insurance calculators will ask you to enter your age and income amount, as well as the following information:
• Outstanding mortgage and loans
• Living expenses
• The number of years you would like to cover your living expenses for
• How much life insurance you currently have
• The cash value of assets you would consider selling quickly to cover any costs in the event of your death
A Word of Warning on Life Insurance Calculators
While life insurance calculators will give you an approximate idea on the sum you should be insured for, online life insurance calculators should not be solely relied upon for the purposes of making a decision in relation to life insurance. This is because everyone’s situation is different, and as such the amount of life insurance needed will differ from person to person. Another negative factor is that these online life insurance calculators do not do is help you identify which type of life insurance policy is best for your situation, such as stepped or level life insurance policies.
You should consider obtaining advice from a financial adviser before making any financial decisions. A qualified financial adviser should be able to give you more accurate life insurance quotes, and can compare a number of policies from the top life insurance companies in Australia.
How to compare life insurance policies in Australia
Life insurance pays your estate or beneficiaries a lump sum should you die. However purchasing a life insurance policy in Australia is different compared to overseas life insurance policies, such as those from the U.S. The Australian life insurance products are structured differently, and as a result it can make online research difficult to accomplish. There are a number of questions you should ask yourself when thinking about purchasing life insurance in Australia. These are things like:
• which life insurance company to go with
• which life insurance policy product to select
• how much life insurance cover you need
• if you also need TPD (total and permanent disability insurance) and trauma insurance or income protection
Let’s delve into each point a little more:
1. Compare the top life insurance companies in Australia
There are a number of life insurance companies in Australia, and some of these companies operate world-wide. One of the best ways to check if a life insurance company is trustworthy is to check their rating. To ensure your life insurance policy is with a top company, you should choose a company with a AA or AAA rating.
To make things easier for you, we have listed the top life insurance companies operating in Australia:
• AIA (formerly AIG)
• AMP life insurance
• Asteron
• Aviva
• AXA
• CommInsure
• ING
• Macquarie
• MLC life insurance
• MetLife
• Suncorp
• Tower life insurance
• Zurich
2. Compare the different types of life insurance policies
In Australia the main type of life insurance product available is Term Life Insurance. This type of insurance typically covers you up to age 99 or 100. However some select life insurance companies also offer 5, 10 or 15 year term life insurance policies.
Within term life insurance policies, you have the option of choosing to pay either stepped or level premiums. The most common option is stepped premiums, where the cost of your premiums increases with your age. The other option is level premiums, where the premiums stay the same to a certain age, usually up to age 65.
It should be noted that the choice of stepped or level premiums depends on what suits your particular situation. The cost difference between stepped and level premiums of each policy has its pro’s and cons. If you are in doubt be sure to speak to your financial adviser.
3. Calculate how much life insurance cover you need
As a general rule of thumb, the average Australian would need approximately ten times their annual income. If you have additional loans or mortgages for residential or commercial properties, you may like to factor these in as well.
If you have any dependents like children, or elderly parents to care for, take a minute to consider what would happen to them should you pass away. There are childcare, nanny, school and possible hospice-care costs that could add up. If there is a significant monetary value in having your loved ones taken care of, you should factor in these costs too.
4. Do you also need TPD Insurance?
Many life insurance companies bundle their TPD insurance with their life insurance policies. Purchasing a bundled policy can save you money, compared to purchasing a two different policies. However, once a claim is made on a bundled policy, you may not be able to make a second claim later on. An example of this is a person with a bundled policy of $500,000 for both life insurance and TPD insurance. If they make a claim due to becoming totally and permanently disabled, when they die, another claim can usually not be made. This is because the TPD claim reduces the life insurance sum insured.
These bundled policies may or may not have a sufficient level of cover to claim for both TPD insurance and life insurance. If you are in doubt or have any additional questions please contact your financial adviser. A qualified financial adviser can help you decide on the above factors, and ultimately which life insurance policy would best suit your situation.
• which life insurance company to go with
• which life insurance policy product to select
• how much life insurance cover you need
• if you also need TPD (total and permanent disability insurance) and trauma insurance or income protection
Let’s delve into each point a little more:
1. Compare the top life insurance companies in Australia
There are a number of life insurance companies in Australia, and some of these companies operate world-wide. One of the best ways to check if a life insurance company is trustworthy is to check their rating. To ensure your life insurance policy is with a top company, you should choose a company with a AA or AAA rating.
To make things easier for you, we have listed the top life insurance companies operating in Australia:
• AIA (formerly AIG)
• AMP life insurance
• Asteron
• Aviva
• AXA
• CommInsure
• ING
• Macquarie
• MLC life insurance
• MetLife
• Suncorp
• Tower life insurance
• Zurich
2. Compare the different types of life insurance policies
In Australia the main type of life insurance product available is Term Life Insurance. This type of insurance typically covers you up to age 99 or 100. However some select life insurance companies also offer 5, 10 or 15 year term life insurance policies.
Within term life insurance policies, you have the option of choosing to pay either stepped or level premiums. The most common option is stepped premiums, where the cost of your premiums increases with your age. The other option is level premiums, where the premiums stay the same to a certain age, usually up to age 65.
It should be noted that the choice of stepped or level premiums depends on what suits your particular situation. The cost difference between stepped and level premiums of each policy has its pro’s and cons. If you are in doubt be sure to speak to your financial adviser.
3. Calculate how much life insurance cover you need
As a general rule of thumb, the average Australian would need approximately ten times their annual income. If you have additional loans or mortgages for residential or commercial properties, you may like to factor these in as well.
If you have any dependents like children, or elderly parents to care for, take a minute to consider what would happen to them should you pass away. There are childcare, nanny, school and possible hospice-care costs that could add up. If there is a significant monetary value in having your loved ones taken care of, you should factor in these costs too.
4. Do you also need TPD Insurance?
Many life insurance companies bundle their TPD insurance with their life insurance policies. Purchasing a bundled policy can save you money, compared to purchasing a two different policies. However, once a claim is made on a bundled policy, you may not be able to make a second claim later on. An example of this is a person with a bundled policy of $500,000 for both life insurance and TPD insurance. If they make a claim due to becoming totally and permanently disabled, when they die, another claim can usually not be made. This is because the TPD claim reduces the life insurance sum insured.
These bundled policies may or may not have a sufficient level of cover to claim for both TPD insurance and life insurance. If you are in doubt or have any additional questions please contact your financial adviser. A qualified financial adviser can help you decide on the above factors, and ultimately which life insurance policy would best suit your situation.
Compare life insurance quotes
A life insurance policy is a guarantee on the life of the insured person. When the insured person dies, the insurance policy will give their beneficiaries a specific amount of money. The insured person makes a payment, known as a life insurance premium, usually on a monthly basis for a given period of time.
How do we know which life insurance policy is best for us? There are a few factors to consider like:
The type of insurance – in Australia there are two main types of insurance offered by insurance companies.
Term life insurance policies – a term life insurance policy is policy that pays out to the insured person’s beneficiaries as long as the insured person passes away within the fixed term specified in the term life insurance policy. For example, a 99 year term life insurance policy would pay out only if the insured person passed away within the 99 years specified.
Select term life insurance - this is a type of term life insurance where the fixed term specified is usually only a brief five or ten years. As with the standard term life insurance policy, a 5 year term life insurance policy would pay out only if the insured person passed away within the 5 years.
Amount of coverage needed - The general guideline is between five and ten times your annual salary. But as stated, this is only a guideline. It's difficult to apply a rule-of-thumb because the amount of life insurance you need depends on factors such as your other sources of income, how many dependents you have, your debts, and your lifestyle.
The cost - The amount of the life insurance policy premium is usually determined by factors such as the age of the person, their gender, occupation, whether or not they smoke, medical history, along with the amount that is required to be paid out on death.
When choosing life insurance Australia, use the Internet's resources to educate yourself about life insurance basics, find a adviser you trust, then have the policies he or she recommends evaluated by a online comparison insurance quote service or fee-only insurance advisor. The bottom line is that the average person does need life insurance and that cheaper doesn’t always mean better – make sure you shop around!
How do we know which life insurance policy is best for us? There are a few factors to consider like:
The type of insurance – in Australia there are two main types of insurance offered by insurance companies.
Term life insurance policies – a term life insurance policy is policy that pays out to the insured person’s beneficiaries as long as the insured person passes away within the fixed term specified in the term life insurance policy. For example, a 99 year term life insurance policy would pay out only if the insured person passed away within the 99 years specified.
Select term life insurance - this is a type of term life insurance where the fixed term specified is usually only a brief five or ten years. As with the standard term life insurance policy, a 5 year term life insurance policy would pay out only if the insured person passed away within the 5 years.
Amount of coverage needed - The general guideline is between five and ten times your annual salary. But as stated, this is only a guideline. It's difficult to apply a rule-of-thumb because the amount of life insurance you need depends on factors such as your other sources of income, how many dependents you have, your debts, and your lifestyle.
The cost - The amount of the life insurance policy premium is usually determined by factors such as the age of the person, their gender, occupation, whether or not they smoke, medical history, along with the amount that is required to be paid out on death.
When choosing life insurance Australia, use the Internet's resources to educate yourself about life insurance basics, find a adviser you trust, then have the policies he or she recommends evaluated by a online comparison insurance quote service or fee-only insurance advisor. The bottom line is that the average person does need life insurance and that cheaper doesn’t always mean better – make sure you shop around!
Cheap Term Life Insurance
Term life insurance is great for individuals who have a family, children or dependents and earn the most income to support their family. Life is unpredictable and it is important to ensure your family and loved ones are taken care of financially in case anything happens to you.
When shopping for life insurance Australia, searching online and using the internet’s resources are a great way to educate yourself on life insurance basics, shop and compare quotes for the best life insurance policy for you. The main type of life insurance in Australia is term life insurance.
Cheap Term Life Insurance for young & healthy people
This type of life insurance may be low cost and great for young healthy individuals who want to ensure their dependents are taken care of in the event of death. Your policy will cover a pre-determined “term”, and in Australia this is usually up to the age of 99 years - but 5, 10, and 15 year term life insurance policies are also available. Your premium payment and death benefits are only applicable during that term.
Cheap term life insurance for people with family
Cheap term life insurance is great for those individuals who want to protect their family in the event of their death. Cheap term life insurance is often referred to as “pure insurance protection” because there is no cash value compared to whole of life insurance or universal life insurance. Cheap term life insurance also expires at a certain time after either a set number of years or when you reach a certain age.
A medical exam may be required when you are buying cheap term life insurance. Most exams cover height, weight and medical history. Sometimes test results can hinder your ability to get approved for term life insurance or it could potentially increase your rates, but if you are healthy you should be fine.
Bundling your cheap term life insurance with income protection or trauma insurance
You may like to consider bundling your cheap term life insurance with income protection or trauma insurance. If you purchase multiple types of personal insurance from the same life insurance company, your premiums may be reduced.
Get advice on cheap term life insurance
If you need advice on where to purchase cheap term life insurance from, speak to your financial adviser. Your financial adviser may be able to help compare hundreds of cheap term life insurance policies and options, and help you select the best policy which suits your particular situation without compromising on quality.
When shopping for life insurance Australia, searching online and using the internet’s resources are a great way to educate yourself on life insurance basics, shop and compare quotes for the best life insurance policy for you. The main type of life insurance in Australia is term life insurance.
Cheap Term Life Insurance for young & healthy people
This type of life insurance may be low cost and great for young healthy individuals who want to ensure their dependents are taken care of in the event of death. Your policy will cover a pre-determined “term”, and in Australia this is usually up to the age of 99 years - but 5, 10, and 15 year term life insurance policies are also available. Your premium payment and death benefits are only applicable during that term.
Cheap term life insurance for people with family
Cheap term life insurance is great for those individuals who want to protect their family in the event of their death. Cheap term life insurance is often referred to as “pure insurance protection” because there is no cash value compared to whole of life insurance or universal life insurance. Cheap term life insurance also expires at a certain time after either a set number of years or when you reach a certain age.
A medical exam may be required when you are buying cheap term life insurance. Most exams cover height, weight and medical history. Sometimes test results can hinder your ability to get approved for term life insurance or it could potentially increase your rates, but if you are healthy you should be fine.
Bundling your cheap term life insurance with income protection or trauma insurance
You may like to consider bundling your cheap term life insurance with income protection or trauma insurance. If you purchase multiple types of personal insurance from the same life insurance company, your premiums may be reduced.
Get advice on cheap term life insurance
If you need advice on where to purchase cheap term life insurance from, speak to your financial adviser. Your financial adviser may be able to help compare hundreds of cheap term life insurance policies and options, and help you select the best policy which suits your particular situation without compromising on quality.
Buy life insurance online in Australia
You may question whether it is safe to buy life insurance online in Australia, but it is actually a very popular way of not only buying but comparing life insurance policies.
The main type of life insurance available in Australia is called ‘term life insurance’. Term life insurance protects you for death, usually until age 99, and pays a lump sum benefit to your beneficiaries or to your estate.
There are also a number of other personal insurance products placed under the life insurance umbrella. These products include trauma insurance, TPD insurance and income protection insurance.
How to buy life insurance online
When buying life insurance online in Australia you can choose to buy life insurance directly from a life insurance company’s website, or through an online life insurance comparison service.
Buying direct from the life insurance company online
When buying life insurance online be sure to go with a well known life insurance company with a good reputation. If you are in doubt, look for a company with an ‘A’ or ‘AA’ rating. These are the top ratings given out by an independent company that can help you determine the trustworthiness of a life insurance company.
Buying from an online life insurance comparator
Another way of buying life insurance online is to go through an online life insurance policy comparison service. There are a number of websites that compare life insurance policies for free, to help you find the most suitable policy. The benefit of using a service like this is that it can save you valuable money and time.
It is important to note that irrespective of who you decide to buy life insurance from, it may be more advantageous to buy life insurance from a business who asks more questions. Companies that ask only a few questions, or do not ask any questions at all, often have higher premiums compared to those companies that ask a large number of questions at application time or at underwriting stage).
Should you buy life insurance online?
Deciding where to buy life insurance from is a personal decision. An advantage is that you may also benefit from special promotions only offered by these online life insurance comparators. Online comparators often have qualified financial advisers who can offer you valuable advice to help you decide which life insurance policy is best suited to your situation.
However purchasing life cover is not something that should be entered into lightly please seek financial advice if you are unsure or require any assistance.
The main type of life insurance available in Australia is called ‘term life insurance’. Term life insurance protects you for death, usually until age 99, and pays a lump sum benefit to your beneficiaries or to your estate.
There are also a number of other personal insurance products placed under the life insurance umbrella. These products include trauma insurance, TPD insurance and income protection insurance.
How to buy life insurance online
When buying life insurance online in Australia you can choose to buy life insurance directly from a life insurance company’s website, or through an online life insurance comparison service.
Buying direct from the life insurance company online
When buying life insurance online be sure to go with a well known life insurance company with a good reputation. If you are in doubt, look for a company with an ‘A’ or ‘AA’ rating. These are the top ratings given out by an independent company that can help you determine the trustworthiness of a life insurance company.
Buying from an online life insurance comparator
Another way of buying life insurance online is to go through an online life insurance policy comparison service. There are a number of websites that compare life insurance policies for free, to help you find the most suitable policy. The benefit of using a service like this is that it can save you valuable money and time.
It is important to note that irrespective of who you decide to buy life insurance from, it may be more advantageous to buy life insurance from a business who asks more questions. Companies that ask only a few questions, or do not ask any questions at all, often have higher premiums compared to those companies that ask a large number of questions at application time or at underwriting stage).
Should you buy life insurance online?
Deciding where to buy life insurance from is a personal decision. An advantage is that you may also benefit from special promotions only offered by these online life insurance comparators. Online comparators often have qualified financial advisers who can offer you valuable advice to help you decide which life insurance policy is best suited to your situation.
However purchasing life cover is not something that should be entered into lightly please seek financial advice if you are unsure or require any assistance.
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