Life insurance in Australia in also known as Death Cover or Term Life Insurance.
Why Are Life Insurance Quotes Important?
Life Insurance covers the insured person and pays a lump sum upon their death to their estate or named beneficiary.
This provides protection to your loved ones and will assist in paying off any outstanding debts such as a mortgage on your home or investments. Life cover insurance should also be enough to provide your family enough funds to continue their lives without financial difficulty.
Without any funds, your partner and family may be required to sell their home, sell their investments, shift schools and be forced to work two jobs. This is very easy to avoid through an appropriate life insurance comparison.
How Does It Work?
Term life insurance pays the sum insured amount as a lump sum upon the insured’s death. This amount is usually paid to their estate, policy owner or spouse.
Most life insurance policies provide extra benefits, such as terminal illness benefit (at no extra cost), where if you are diagnosed with a terminal illness the amount insured is paid out sooner rather than waiting for a death to occur. We will only quote on the life insurance companies that provide this.
Life Insurance For Your Spouse
Another thing to keep in mind is that Life Insurance is not solely for the breadwinner of a family either, couples cover can attract a 5-10% savings. It is also important to consider cover for a spouse caring for children along with the income earners policy. These policies cover child care costs and other costs related to caring on a day to day basis for the family and will be paid should anything unfortunate occur to the carer.
Life Insurance Quote Considerations
The three key factors you should consider when getting life insurance quotes include:
- Face amount or sum insured (protection or death benefit)
- Premium to be paid (cost to the insured)
- Length of coverage (term)
Life insurance is particularly good for those who wish to be and would like to be eligible for high benefits during certain times of their life.
For example, let's say your family has a significant debt, such as a home loan, that cannot be serviced if one of the family's income streams were lost as a result of a tragedy. In such cases, Life Insurance is an excellent product because, in the case of death, high benefits are paid for a relatively small premium compared to other forms of long term savings.
Once you have serviced all your debts, and have built a significant asset base, the need for Life Insurance may not necessarily be there. If you decide your circumstances have changed, and you no longer need Term Life Insurance, you have the flexibility to stop paying your premiums and that's it.