2 life insurance tips that will allow you to hang ten in the future

Posted on Friday, November 10, 2017 - 11:15

Life Insurance policies are created to give you and your loved ones’ peace of mind when you are no longer around. It’s there to work for you while you relax. We take out protection for everything, but Life Insurance. 37% of industry Super Fund members in Australia believe that Life Insurance is not set as a high priority on their list due to other financial commitments. This leaves as many as 84% Australians who set their leave their Life Insurance to the last moment.

1 in 3 Australians consider Life Insurance to be too complicated to understand, but we have simplified into two tips that will get you started.

If you are reading this it’s not too late and you still stand a chance of salvaging the future so you can hang ten peacefully. We help simplify things for you with a quick and easy process that leaves you feeling more assured than unsure. Here are two essential tips that will give you peace of mind when it comes to life Insurance:

Before we start, understand what it can do for you

Life Insurance is not only available when the curtains have closed, but can be accessed when you are alive. The policy has expanded beyond just paying out a lump sum of money to cover your family’s needs in the event of death. It covers you should life take a turn for the worst in the event of a terminal illness, sudden redundancy and accident.

1. Know the type of life cover suits you

When it comes to life Insurance it’s not one glove fits all. That will be like a scuba diver jumping into the ocean without a scuba suit, but a onesie because, “Ey it’s all the same to me.” There are many to choose from to cater towards your needs but the main four are:

Trauma insurance (critical illness insurance)

Purpose

This aims to cover critical illnesses such as; having a stroke, cancer, or a heart attack. It pays out a sum of money while you take time on your rehabilitation process to cover expense should you not be able to work.

Key features

The benefits of this is that it can help you take time off work and recover. You can enjoy the process of recovering rather than worrying about the cost of it. Death benefits can be included from your Life cover. The only thing is that some policies involve a survival period before they pay you out.

Life cover:

Purpose

A lump sum of money is paid out in the event of death or should you be diagnosed with a terminal illness.

Key features

The benefits of this is that you are covered instantly as soon as you take out your policy. There are premium wavers, which means that some premiums on your policies will be waived should you fall terminally ill or become disabled. Furthermore, some policies have funding and pay outs towards rehabilitation in exchange for reduced benefits.

Income protection:

Purpose

This is for all employees who might suddenly not have financial support due to loss of work.

Key features

It usually covers up to 75% of your gross salary for a maximum period. These could be stepped or levelled, so you need to understand what policy you are getting.

Total and Permanent Disability Insurance (TPD):

Purpose

This is geared towards paying one lump sum should you obtain a disability and can’t work again.

Key features

It can assist in covering remaining debt, medical expenses such as rehabilitation and carer costs. Furthermore, it will supply a secure income to help you maintain your lifestyle.

2. Get a Life Insurance agent

These are your guardian ninjas who finesse their way through policies and plans with a razor blade eye to suit you, your family, health, and current financial status. How to judge if your ninja is a true guardian ninja?

  • They are good at analysing the field to come out with the best results for you. They can tell you which best policy can suit you, advantages along with its drawbacks in detail.
    • They are accredited by the state they reside in and it should be up to date. In such delicate matters you cannot afford to have imitations.
      • They are experienced in working with people in your situation to make sure that you get the best.
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