Check if your life insurance policy is suitable for your situation
Having a life insurance policy in place is the first step that you can take. But keep in mind that not all policies are created equal. With so many policies to choose from the life insurance umbrella body, it is important that you carefully choose that has suitable features for your current life stage. Remember to check the product disclosure statement to see what you are covered for and what you are not covered for.
Are you optimising avenues where you could possibly save?
Setting aside money can be one of the ways that you can build a solid nest egg that can help you retire comfortably. According to statistics from MoneySmart, 57% of Australians invested their income into savings, with the top two reasons for saving being; saving for the future (47%) and saving towards an emergency fund (33%). You can also maximise your savings by comparing life insurance policies to find one that offers you all the features that you need to adequately cover you and your loved ones at a competitive price.
Slowly build your cover
There is an advantage to having a life insurance policy that allows you to upgrade your policy whenever you reach big life milestones. Being able to cover every aspect of your life is ideal, but not everyone can afford to have all life insurance policies at once to do this. One way to overcome this is by slowly building your life insurance policies. This means having a life insurance policy in place and slowly adding other policies such as:
- Income protection
- Trauma insurance
- TPD insurance
- Funeral insurance
The effects of the waiting period
Carefully consider how the waiting period on your life insurance policy will affect your finances. Waiting periods vary from policy to policy, which is why it is essential that you check the product disclosure statement. Some policies can take 30-60 days based on the type of policy that you have. It will be useful to consider how you can use your finances to cover this time frame until your claim is processed. This can help you make a smoother transition into retirement without straining your finances.
Always remember to check that you meet the eligibility criteria and that you know what you are covered for. This can help you avoid disappointments when it is time for you to process your claim. Speaking to a broker or an insurer can smoothen the process of finding a policy that is tailor-made for you.