11 Aug How do I find the best Life Insurance Policy
The best life insurance policy depends on each person’s circumstance. Every person’s situation is different so what might work for one person might not suit another. This is because every policy offers various built-in features, options and price levels.
In this article, we’ll help you find the best life insurance policy for you. These 4 steps are:
Step 1: Talk a financial adviser
The smartest thing you can do is to reach out to a financial adviser and ask for assistance. With a financial adviser, choosing the best life insurance policy is easier because you can discuss your particular situation with them and they’ll suggest the best type and level of cover for you. But note that the recommendation they’re going to give you will be based on the information that you have provided.
Step 2: Compare Policies
Don’t forget to compare the plans available to you in the market. By comparing policies, you’ll be able to see the premiums that are available to you as well as the benefits and options that come with it.
Step 3: Do your Research
Don’t forget to research and see the types of life insurance and the features and options that are available. This way, you’ll know more and understand what you’re getting.
Step 4: Know your condition
In order to get a cover that will suit you the best, you need to know your circumstances. If you don’t know what your mortgage repayments are or if you’re not sure how much you’re spending every week on living expenses, then this is the perfect time to find out. This will help your financial adviser a lot when finding a cover that will work best for you. Remember, you don’t need a cover that is insufficient or insurance that covers you for more than what you need, thus making you pay more.
General things you need to consider:
The first thing you need to do is to check if you can afford the policy you want to take out. Different policies have different premiums, so it’s always good to check and compare the best policies out there to get the best value for your money.
2. Worldwide cover
Do you love to travel? Most insurers nowadays offer policies that have a worldwide cover. So, if you’re planning on going on another trip soon, make sure your policy has this.
3. Sum Insured
Although most insurers don’t have a limit on the level of cover you can take out, some may still have a maximum coverage amount. So, you’ll need to compare policies to find the one that will fit you the best.
4. Check the built-in benefits
Different policies also come with many built-in features like Benefit Indexation, Terminal Illness Benefit, and Funeral Advancement. As you search and compare policies, you also need to look at the built-in benefits that are included to see what is one’s applicable to you.
5. Policy Options
Policy options are there so you can customise and upgrade your policy whichever way you want. But remember these policy options also come at an additional cost.
6. Other Cover Types
If you have other types of insurance like trauma or total and permanent disablement insurance, insurers usually let you combine those with your life cover. If you’re planning on taking out comprehensive protection and add other cover types, you might want to consider an insurer will offer different cover types.
7. Your Medical Condition
You need to find an insurer that will be able to provide you a good rate and cover for any pre-existing medical conditions. Make sure you mention this to your financial adviser beforehand.
If you’re married with kids, then you may also want to insure them. Look out for insurers that offer free child cover of up to $10,000.
9. Extreme sports
Insurers have plenty types of protection and benefits you could choose from, and they’ll always try to provide you the cover you need no matter what your situation is. But some insurance may cost more depending on your hobby or sport. If you enjoy extreme sports such as bungee jumping or skydiving, make sure to find an insurance that’s right for you but will also be at the right price.
Some tips on how you can save:
The simplest way to save money on your life insurance is to compare policies. If you’re already working with a financial adviser who can give you a comprehensive comparison of insurers, then it’s easier for you to compare and choose since you’ll be able to see the premiums available for each policy.
But if you want to save even more money, you can consider these tips:
1. Multi-policy discounts
Insurers usually offer discounts if you take our more than one policy across multiple cover types.
2. Multi-life discounts
Insurers may also give you a significant discount if you and your spouse take out a policy at the same time or if you take out a policy for your business.
3. Large lump sums
Large lump sum benefits usually get discounts on your premiums.
4. Annual Payments
Paying for your premiums annually instead of monthly or bi-annually often gets you a discount.
5. Give up smoking
Insurers will still classify you as a smoker even if you only had one cigarette in the past 12 months. If you give up smoking, you can cut the cost of your premium by 50%.
6. Choose a healthy lifestyle
Insurers also offer discounts if you can show them that you have an active and healthy lifestyle.
What should I do if my circumstances have changed?
When taking out a policy, it’s important to make sure that it goes with your circumstances.
But as time progresses, our circumstances also change. We get older and our circumstances change along with us. We may buy a house, get married, have children or we earn more money. You can change your cover by adding cover or reducing your cover level.
The Axiom Risk team is well qualified, having worked in banking/financial planning industry for more than 25 years collectively.
Contact us today on (08) 7231 1412 for a confidential and personalised discussion about your individual circumstances and requirements or visit our Adelaide Risk Insurance Website.