Compare Life Insurance
If you want to compare life insurance policies, you’re in the right place. Many Australians don’t consider life insurance early enough, and it can leave families financially exposed. No matter how old you are, there’s never a bad time to compare life insurance policies and give yourself some peace of mind. While we like to think we’re bulletproof and nothing bad will happen to us, it sadly isn’t the case.
If you were to die unexpectedly, think of all the expenses your family would be left with. Losing a whole income from a family can be financially crippling. Losing a loved one is always a difficult time, and financial pressure can only make it worse.
So let’s have a look at some of the key information you’ll need to know before you compare life insurance.
Understand What You Need
Your own personal circumstances will dictate the type of cover you choose. There’s different forms of life insurance, and Billy Explores can help you compare a range that suits your needs. You may not need all of the life insurance varieties listed below, so make sure you understand what you need before taking out cover.
Compare Life Insurance
Life insurance is a lump sum payment made to your family if you were to die or become permanently incapacitated. The higher total payout you want your family to receive, the more you will pay in monthly premiums.
Because it’s a lump sum payment, your family can use it at their discretion for things like:
- Paying off a mortgage
- Ongoing costs like rent and bills
- School fees
- Your funeral costs
- Expenses related to finalising your estate
- Everyday living expenses
- Car loans, credit cards or other debts
In a time of grief, the last thing your family needs is financial pressure. Life insurance can help protect your family financially when they’re most vulnerable. Similarly, you can ensure they’re looked after well into the future as well.
Income Protection
When you compare life insurance, one of the most common types is income protection. Depending on the level of cover you select, income protection will pay up to 75% of your wage if you’re unable to work for a period.
Your financial obligations can still be met while you’re unable to work, so income protection is a very popular type of insurance. Make sure you check out the product disclosure statement when you sign up, because there are some restrictions on the kinds of injury or illness it covers.
Total Permanent Disablement (TPD) Insurance
TPD insurance covers you and your family if you’re permanently disabled. Similarly, if you’re unable to work in your normal profession due to injury or illness you could be eligible for a payment.
TPD insurance is paid in a lump sum. This means you can use it for whatever your family needs most. Some expenses you could cover with TPD include:
- Everyday living costs
- Paying a mortgage in part or full
- Covering rent costs
- School fees
- Medical expenses associated with your rehabilitation
- Clearing debts or loans
- Re-training for a new career
When you’re unable to work again through no fault of your own, it can be an extremely stressful thing to deal with. If you’re unable to work again, TPD insurance gives you some peace of mind. Your family can still be looked after without your income.
Trauma Insurance
Trauma insurance is another lump sum that you can claim if you suffer from a debilitating illness or injury. Dealing with serious illnesses can take a toll on families as well as the individual. With trauma insurance, you can receive a lump sum payout to help cover costs while you’re receiving treatment.
Most health insurance doesn’t cover you for long term or serious illness. Likewise, even if treatment is covered, your lost income won’t be. That’s where trauma insurance can be a massive help for you and your family if you fall ill.
Trauma insurance may situations like:
- Strokes
- Heart attacks
- Cancer
- Dementia
- Intensive Care admission
- Accidents
- Paralysis
- Chronic illness
- Nervous system diseases
Trauma insurance covers these issues and many more. To understand everything you’re covered for, check with your insurance provider.
Key Man Insurance
Key man (also known as key person) insurance is a cover obtained by businesses. Whether a business is small or large, key man insurance can be extremely beneficial. It covers a business for the death or disablement of an integral employee. There’s no particular definition of who an integral person, but it’s usually someone who is very difficult to replace.
Should such an employee pass away, key man insurance helps cover the cost of replacing them.
Are There Tax Benefits When I Compare Life Insurance?
First of all, many superannuation plans include a life insurance component. Unfortunately, this may not be suited to your needs because you don’t choose the amount. This type of life insurance is not tax deductible.
You can’t claim a tax deduction for life insurance, TPD or trauma insurance either. In contrast, you can claim your income protection as a tax deduction.
How Much Life Insurance Do I Need?
There isn’t a specific trick to working out how much life insurance you need. When you compare life insurance, you’ll want to be looking for the best value for your specific needs. What we mean here is to find the level of cover you really need for an affordable price. That’s what Billy Explores and our Partner SpotterLife are here to help you with.
You probably have no idea when you may need life insurance, so that makes it difficult to calculate. You might decide you want your family’s annual expenses covered for 10 years. If they need $80,000 per year, then you want to purchase $800,000 worth of cover.
In contrast, you may just want to ensure they can pay off the mortgage, in which case you may opt for a lower amount. It will also come down to what you can reasonably afford in your monthly budget.
How Do I Compare Life Insurance?
When you compare life insurance, you want the job to be easy. It’s a complex matter, and you don’t want to spend hours searching different providers for the best value. The good news for you is that Billy Explores and our partner can do the hard work for you comparing a range of providers. Click here to compare life insurance today.
