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1. Finding a policy that is suitable for your age and health
Before moving from your current policy to the next you may want to consider if your new policy is suitable for your age and health. Checking the policy features to see if it is suitable for your current circumstances is essential, but it also helps to think of how your policy will help serve you long term. Always remember to compare the various policies that are available on the market to find one that will offer you the best value for your money.
2. Does it come with a premium that is suitable for you?
It is vital that you constantly assess whether your life insurance policy comes with premiums that match the features. According to research by Roy Morgan, 1,008,000 risk and life insurance policies were planning on switching companies, but only 77.4% of Aussies are leaving their policies to be renewed automatically without approaching a new company. This could lead to you missing out on a great deal in terms of finding a low rate policy.
3. Is a life insurance policy within super enough?
You may be considering whether taking out a life insurance policy is worth it, or you may have one already but wondering if switching up is worth it. This is where you need to carefully weigh the pros and cons of having a life insurance policy through a superannuation fund. Although superannuation funds offer an affordable life insurance policy, it also has the pitfalls of being catered towards a group rather than your individual needs.
4. Fees that come with the new policy
It pays to research the fees and charges that come with your new policy. The last thing that you want is to bite off more than you can chew, which can lead to you making your policy void. Not all policies will come with the same fees and charges. Therefore, reading the fine print of your product disclosure statement can highlight what ongoing fees come with the policy.
5. Will you be getting the same level of cover?
Checking to see if you will be getting the same level of cover or more is essential. You can also check the exclusions that come with the policy to ensure that you are not underinsured or won’t be covered for certain circumstances. The same applies to finding a policy that will be able to cover any pre-existing conditions that you may have.
6. Will it come with a waiting period?
Some policies come with a waiting period which can affect how the claim is paid out. Checking whether your policy has a waiting period will ensure that you adequately prepare your finances to cover the waiting period.
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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.
Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.
For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.
