How to get adequate life insurance coverage without breaking the bank

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, updated on August 4th, 2023       

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If you are someone who has dependents that rely on you financially, it is vital to get a life insurance policy to keep them protected should you find yourself unable to provide for them due to illness, injury or even death. This also means you taking out a policy that will protect you in the event where you are unable to go to work. But how do you add policies that will cover you while you are still alive without breaking the bank?

Adequate life insurance cover


Building a life insurance policy that will cover you and your life one takes time, but it is important that you start. According to Lifewise, 1 in 3 Australians do not have adequate life insurance cover. Taking out a policy is the first step. Life insurance is an umbrella body that has various policies that can protect you and your loved ones while you are still living and after you have passed on. The common one pays out a lump sum that will help cover funeral and legal expenses while being able to sustain your loved one’s lifestyle long after you have gone. But you can add other policies to build adequate cover.

Income protection

After you have taken out a life insurance policy you might want to consider an income protection plan that will protect you in the even where you are unable to work due to illness or injury. It pays out 75% of your salary to help you take care of your expenses without the financial stress. According to Rice Warner, 70% of working Australians opt to protect their salary through their superannuation fund, but if you are looking for a cover that is tailored to suit your needs without having to pay for features you won’t use then taking out a policy with a broker or insurer is the way to go.

Add according to each life stage

In an ideal situation, you will get trauma insurance, TPD insurance, and income protection as a strong shield against life’s financial curveballs. But this is not possible for many Australians that have financial obligations. The average Australians is short by $480,000 short when it comes to adequately covering their loved ones. However, you can eliminate the stress of having all policies by slowly building according to your life stage. If you are just starting a job, getting married or growing a family you can get policies that will cater for each life stage. It will also give you enough time to plan your finances accordingly so that you can budget for each policy as you grow so that it doesn’t overwhelm you.

Compare to get the more bang for your buck

Adding a bunch of policies that are not worth their salt can be the last thing that you will need. Try not to be blinded by the price that comes with a policy, but rather compare what each package has to offer and if it is suitable for your needs. The common assumption is that the more expensive something is the better, but this could be a dangerous assumption. That is why it is important to always compare policies not just for an affordable rate, but on the value it offers.

You will be surprised at how affordable life insurance policies are. It will be beneficial to speak to an insurer or broker to know what your options are and how you can work towards building your policies to get premium cover