4 signs that you are investing in a good life insurance policy

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors
, updated on November 25th, 2021       

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No one knows what can happen tomorrow, but taking out a life insurance policy can help you protect your family financially from unforeseen circumstances. However, with so many insurers offering a wide range of policies how do you know that you will be getting the best value for your money? Here are five signs that you are investing in a good life insurance policy.

1. Your insurer breaks down the policy for you

An insurer will tell you what policies they have to offer, but a good insurer is one that lets you walk away understanding what you have invested in. Looking for the right insurance policy can get confusing, but when making such big financial decisions it is important that you understand what you are investing in. A good insurer shows you the range of options and explains how each may be beneficial for your individual circumstance. They also help break down the various features that come with it and how each will be beneficial for you and your family when it comes to claim time.

2. The premiums match your finances

Putting in the research by comparing various life insurance policies is vital to finding one that is financially affordable for you, but still offers adequate cover. A good life insurance policy is one that doesn’t come with hidden fees and charges. These are usually disclosed in the product disclosure statement which gives you a clear description of what your policy offers, its exclusions, and the fees that come with it. If there are fees and terms that you do not understand you can ask your insurer to explain to you. Remember to never sign a policy that you do not fully understand.

3. Research the claims rate

When choosing a life insurance policy from an insurer it is important to put in the research to get the best value for your money. Finding an insurer that has your best interest at heart will pay off in the long run. An insurer or broker that boast a good track record when it comes to their claims record is a good sign that when it is your time to make a claim you are likely to have your claim approved. Carefully read through the fine print to see what exclusions come with the policy and whether it will offer adequate cover for you when you want to place a claim.

4. Tailor-made life insurance policies

Purchasing a life insurance policy through a superannuation fund may be an affordable way for many Australians to purchase life insurance. However, one of the major drawbacks is that it is tailored towards a group and doesn’t take individual needs into considerations. Buying a life insurance directly through a broker or an insurer ensures that every aspect of your life is taken into consideration to ensure that you and your family are adequately covered. It also proves to be the best option for people who already have pre-existing medical conditions since there are insurers who cover these.

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