Getting the most out of your life insurance online

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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It is something that most Australians put off buying, but it is something that will help keep your loved ones financial stable even when you are no longer around. Life insurance will help you to know that your loved ones are protected long after you have gone. The search for health services online has doubled over the past few years, but the question is how can you know that you are getting the best deal by not under or over-insuring yourself when it comes to life insurance?

You need to know why you need it

According to a recent release by the Australian Bureau of Statistics, searches for health services online has doubled by 46%. This is a sign that more people are interested in investing in their life, but when it comes to life insurance you need to know why you want to invest in it. Having life insurance can give you peace of mind, but if you are simply buying it because you heard that it is a ‘good idea’ then you could be missing the point. The aim of life insurance is to provide families with financial stability in the event where a spouse or parent passes on. Life insurance helps cover expenses such as:

  • Helps you to pay off the mortgage
  • Cover college education fees
  • It can help to fund retirement

Prepare for the future with life insurance

You might not have a family or a spouse, but life insurance can be started today to invest in the future. The perks of starting life insurance while you are still young is that you are most likely to be healthy and therefore you could be paying cheaper premiums. Even if you are looking for something small to get you going, you can choose a policy that matches your current financial situation and life circumstances without breaking the bank. Of course, it will be beneficial to constantly check that your policy matches the various life stages you will be entering to ensure that you are adequately covered.

How much cover will I need?

There is no lucky number when it comes to finding how much cover you need, and this is because it differs from person to person. The amount that will be paid out to your family after you have passed is called a death benefit. How much cover you will need will be based on the type of lifestyle you and your loved ones are currently living. Using online calculators can help you get an estimate of what will be adequate for you. It will also be helpful to speak to a broker who will be able to assist you in not over or underinsuring yourself.

Finding a provider

With so many providers that come with different offers, which one should you go for? Firstly, this will depend on the type of policy that you are looking for. Are you looking for life cover, Total and Permanent Disability cover (TPD), trauma cover, or income protection? You might need one or more which will depend on how much cover you need. This can also be determined by how much you can afford.

Secondly, by comparing online you will be able to test the quality of the provider that offers the best deal. It is always important to compare, and not settle for the first policy that you come across. The insurance policy you want is only as good as the company that you get it from. You need to check if the company has been around for long and will continue to be around for as long as you will need your coverage. The last thing you will need is to file a claim and the company has already gone under along with all your savings.