5 things to do before buying life insurance online

Published on November 20th, 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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Find an insurer that gives you options

There are reputable insurance providers that have managed to bridge the gap for policy seekers by providing life insurance policies online. Recent research by Roy Morgan revealed that online life insurance policies have double in sales in the past 5 years to 349,000 by the same time last year. To get the best value from an online insurer it is essential that you choose an insurer that offers you options that you can compare that will be suitable for you.

Know what policy is suitable for your current life cycle

Being able to get the most out of your policy means that you need to know what type of policies are out there, and which one will be most suitable for your current life stage. Life insurance is an umbrella body that comes with other policies such as; income protection, Trauma insurance, Total permanent disability insurance, and the main being life insurance. You have the option of starting off with a life insurance policy then layering it with other policies such as income protection or trauma insurance which are specifically designed to protect you in the event where you are no longer able to work due to injury or illness.

Speak to an insurer or financial advisor

You may be wondering if the policy that you are purchasing online will adequately cover you and your loved ones when you are no longer around. When it comes to making such critical financial decisions, many Australians choose to approach a financial advisor or an insurer that will be able to advise them on making a more informed decision. According to Roy Morgan, 2.9 million Aussies turn to their friends or families to ask for advice concerning their finances and investments. However, speaking to an insurer or financial advisor can be more beneficial because they will be able to assess various aspects before suggesting an option that is more tailored to your needs.

Watch out for shoddy insurers

Although there are reputable insurers that are offering life insurance policies online, you may come across a few shoddy insurers that should raise your suspicion radar. An accredited insurer will take you through an in-depth process to find adequate insurance for you. Therefore, a quick approval without any questions asked or the request for documentation should raise your suspicion. They will also let you know about your options and be transparent about the fees that come with the policy. It is essential that you check if they are an accredited company that is registered within Australia. If not, then it's best to walk away.

Always compare your options

Never take a policy at face value, especially when your insurer tells you that it comes with the best rate on the market. You will be better off comparing various policies on your own before signing your name on the dotted line. Remember to always check the policies features and exclusions to see if it matches your needs.

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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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