Below are a few hints and tips to help ensure that you get the best benefits from your life insurance:
- The younger you start, the better. When purchasing insurance at a younger age, you are more likely to be in better health. This means that you will normally obtain better rates on your premiums. Once you’ve purchase insurance, you are guaranteed renewal of it, no matter what conditions you may be diagnosed with at a later point in life. However, if you wait too long to purchase insurance, chances are that you may not be as healthy as before, meaning that you could pay higher premiums or have health conditions excluded that may have arisen in the meantime.
- Enquire whether you have any over available through your super fund, and if so, how much is available. You might find that you will only need to top up existing cover, and working this way will enable you to pay a far lower premium than if you had to purchase a standalone policy. In addition, you will save money because the premiums will be paid out of your pre-tax income.
- Determine how much cover will suit your needs. Although it’s essential that you not underinsure, you should also not be paying for more insurance than you will truly need.
- Ensure that you thoroughly read through the Product Disclosure Statement (PDS). This is crucial, as it not only describes the product you are purchasing; it also outlines the benefits it provides and whether there are any limitations or exclusions in place.
- Don’t be afraid to shop around. There are many insurance policy products available in what has become an extremely competitive industry over the past few years.
- Ensure that you disclose all required information honestly and thoroughly, especially where medical conditions and lifestyle habits are concerned. If you fail to provide the information or are untruthful regarding whether you smoke or suffer from a pre-existing condition, your policy may not pay out when needed.
- Check to see that the policy you purchase makes provision for indexation to account to cater for inflation.
- Enquire whether it will be possible for you to claim your insurance premiums as a tax deduction. Some types of premiums are tax deductible, which could make your premiums more affordable than you think.
- Inspect your Salary Continuance/Income Protection Insurance in your super account. If it happens to include a two year benefit period, it’s recommended that you take out private cover that will take effect at the end of the two year period. This could help reduce your premiums significantly.
If all of this information is leaving you feeling overwhelmed, why not chat with us here at Find Life Insurance today? We will be more than willing to sit down with you and discuss the various insurance options that are available to suit your family’s financial needs in the event of you no longer being able to do so.