When you are seeking life cover, also referred to as death cover or term life, you need to align yourself with a company that provides protection and saves you money on premiums, and gives you a comprehensive and secure cover. Personalised service and excellent claims management should also be a part of the package.
Cost Savings for You
When you choose the right insurance company, you will be selecting a provider that is able to pass on its savings to its clients. For example, when you select an insurer that does not invest in mass marketing or external commissions upfront, it can pass its savings back to its clients through premiums that are reduced. As a result, you, as a client, can save substantially each year or obtain increased cover at the same cost that a competing insurer provides.
When you buy your death cover direct, you are not charged for any advice commissions and, therefore, are not charged additionally on your cover. That way the insurer can also provide additional discounts or larger amounts of cover.
Discounts on Insurance
Most life insurers will allow you to pay your premiums yearly or monthly, either of which can be paid through a debit arrangement or via your MasterCard or Visa account. If you pay annually on life cover, you will usually receive an additional five percent discount. As long as you make sure that the premiums are paid, you will enjoy continual protection. That is why insurers reward you with a discount if you can make an annual payment.
Choose a Well-Established Insurer
Life insurance, when sold comprehensively, is usually sold directly to the public or through advisors. Therefore, it is usually associated with bigger brands. Make sure the death cover you choose is associated with a company whose policies are both protected and insured by a large reinsurer. Choose a company that is well established in the industry.
Fully Underwritten Insurance
Cover should be fully underwritten. That means all of the applications that are processed should contain full details about an applicant’s lifestyle and health history. Make sure you give answers that are truthful and complete and are not subject to any additional confirmation at the time of a claim.
Insurance Credentials
The life insurance company you select should also show proof that it holds an AFSL, or Australian Financial Services Licence, and should be regulated by the APRA, or the Australian Prudential Regulation Authority. It is also helpful to apply to a company that is a member of COBA, or the Customer Owned Banking Association – an entity that is the industry body for mutual financial services in Australia.
Some Final but Important Notes
As long as you pay your premiums, you should be able to renew life insurance annually until the expiry date. After you are accepted, your cover cannot be cancelled or premiums increased as the result of any change in the state of your health or switch in occupation. Buying life insurance is a necessity for any homeowner who regularly pays on a mortgage and has a family to support. Look at your options online. The protection is needed by everyone whose family’s lifestyle could be significantly impacted by their passing.
