We really don’t want to think about the fact we may die. However, it is important to plan for this if the unexpected happens. People who depend on you may experience financial hardship after a sudden death. If this occurs, life insurance can assist them in covering their bills and other living costs.
The biggest question is of course, do you need life insurance? Billy Explores is here to help! We’re going to work through some of the big questions about what is life insurance and do you really need life insurance? Then Billy can help you work through the best value life insurance for your particular needs! We’ve already got a handy FAQ here as well.
You can quickly and easily compare life insurance from our panel of life insurance providers below.
What Is Life Insurance?
Term life insurance and death cover are other names for life insurance. When you pass away, it pays out a fixed quantity of money to beneficiaries. The beneficiaries you designate receive the funds on the policy.
In the absence of a designated beneficiary, the super trustee or your estate will select who receives the funds.
There may be a terminal disease component to life insurance. If you are told you have a terminal illness with a short outlook on life, this pays a lump payment.
Accidental death insurance is different from life cover. It will only pay out if you die from an accident. It will not provide cover if you die from an illness, disease or suicide. This type of cover often has a lot of exclusions.
How To Buy Life Insurance
Verify your existing life insurance coverage through super. Most super funds offer default life insurance, which is less expensive than purchasing it separately. If necessary, you can raise your level of coverage through your super fund.
You can purchase life insurance from:
- Financial consultant
- Insurance broker
- Direct purchase from an insurance company
- Compare life insurance through Billy Explores
You can get life insurance separately or as a bundle with trauma, TPD, or income protection insurance. If it’s packaged, any money paid on the other claims in the package may be deducted from your life insurance. Billy recommends examining the PDS or contact your insurer.
Life Insurance Premiums
Typically, you have two options for paying for life insurance. Both premium rates depend on your individual circumstance.
Stepped premiums — assessed again at each insurance renewal, typically going up every year in response to the increased likelihood of a claim as you get older.
Flat premiums – charge a larger premium at the beginning of the policy; but, price rises aren’t based on your age so increases occur more gradually over time.
The cost of your premiums, both now and in the future, is significantly influenced by whether you choose stepped or level premiums. This is why it’s important to constantly compare life insurance and see if you can get a better value deal. You can do this through Billy Explores!
How To Compare Life Insurance
After determining how much life insurance you really need, browse around and compare:
- advantages and policy aspects
- lengths of time before you may claim
- restriction on cover
- the current and future costs associated with premiums
A less costly coverage can contain more exclusions or it might cost more in the future. The product disclosure statement or the insurer’s website both contain information regarding the policy.
What You Must Disclose To Your Insurance Company
When you apply for insurance or make changes to your policy, an insurer will have a lot of questions for you to answer. These questions could be about:
- medical history
- family history, including a history of illness
- lifestyle choices (for instance, if you smoke)
- risky hobbies or activities (such as skydiving)
Insurers may have more exclusions or more specific policy definitions if they don’t request your medical history.
Your information will aid the insurer in making the following decisions:
- How much your premiums will be, assuming they decide to insure you,
- Terms of your insurance
It’s very important that you provide truthful responses to the questions. An insurer may cancel, change, or deny your coverage if you give false or insufficient information, or they may decline a claim you submit.
Important Questions to Ask When You Compare Life Insurance
You need all the facts when you start to compare life insurance policies in Australia through Billy Explores. Some important questions you need to find out and ask yourself are listed below (thankfully we’ve already answered some of them for you!):
Compare Life Insurance in Australia Now
So you now know a little bit more about why you need life insurance. So the best thing to do is compare life insurance through Billy Explores! You can save time and effort and explore potential savings today. Compare Life Insurance
Important Links For Health Insurance Comparison
While you’re comparing life insurance in Australia, why not do a health insurance comparison through Billy Explores too? We’ve got the links below.
Compare Health Insurance
Difference Between Medicare and Private Health Insurance
Compare Private Health Insurance
Compare Health Insurance In Australia