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What features are important when choosing life insurance

Published on November 27th, 2020
  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.
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Know your why

It all starts out with knowing why you need life insurance. Thinking about death is something that we all put off, but there comes a time where you have to think about what will happen when you are no longer around. Think of life insurance being there to step in to continue the lifestyle your loved ones know. This will help you figure out what you would like covered in terms of expenses which will determine how much cover you take out. Expenses can range from anything such as:

  • Paying off your bills
  • Personal or Mortgage debt
  • Funeral expenses
  • Educational expenses
  • Everyday living expense

When you have figured out how much cover you will be needing to cover expenses that are tailored towards your personal situation it will bring you to the next step.

Consider your life stage

Searching for an insurance policy that fits the bill will take time. There is no need to rush the process until you know that you are satisfied with the type of policy you have chosen. The next part when choosing an adequate life insurance policy is considering your life stage.

Life changes in stages and so should your loan. This means a policy for a 25-year old who is single will be different for a retired 50-year old. Changes can be in the form of you getting a new home, starting a family, or remarriage.

Your age and health will play a role in what you pay in premiums, so it is vital that you keep yourself in a healthy condition. 62% of Australians don’t do enough physical activities, which decreases with age.

Choose something that is more important to you at this point in time. As your life grows and changes you can change your policy accordingly. Using an agent to help you find a policy that is suited towards you can have the perks of finding the best deals that are currently on the market.

Researching can help you make an informed decision

There are various life insurance features that are available to tailor make your policy. However, knowing what features matter the most to you will make the research process easier. You can write a list of features that you need and will not negotiate, then proceed from there in searching for a policy that meets the criteria. How would you like the policy to work for you? Features that can be useful to you are Premium Freeze Feature and Guaranteed future insurability.

Premium Frees Feature comes in handy when it comes to pausing your premiums should you be struggling financially. Guaranteed future insurability, on the other hand, increases your cover amount as you get older without having to undergo additional medical assessments. Never skimp on how much cover you want because you are trying to save money. In the end, it will come back to haunt those you leave behind. Rather seek ways to help you save on your life insurance premiums while getting the best cover for your loved ones.

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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.

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