Taking out a life insurance policy is a big step in life. With this policy, you will become the ultimate provider to your family. Not only will you be able to take care of your last expenses on this Earth, such as any remaining debt and funeral expenses, but you will also be able to provide for your family long after your passing. Taking out a policy often gives one relief and tranquillity in life because they know that no matter what may happen, their family will always be provided for. However, to rest assured, you cannot simply take out any type of life insurance. Below you will find some important factors to consider before you buy life insurance:
• Always speak to your family about taking out life insurance. It is a big step in all of your lives, so make sure that everyone is informed and comfortable with the decision, especially with your partner.
• It is suggested that everyone in your family is insured, not just the “bread winner”. You can take out insurance policies on yourself, your partner and children.
• If price is an issue, you may want to look to your super fund. Many times you may already be insured through your super. If you are not happy with this policy, you can always increase it. This will normally be much cheaper than having to take out an unaffiliated insurance policy by yourself.
• Look at your current financial situation and determine how much you will need your insurance policy to cover. If you are unsure about how much you need covered, then you should speak with family members who already hold policies, insurance agents and also with financial consultants to help guide you in the right direction, but ultimately the decision is yours.
• Shop around online to compare the policy costs of different insurers. Make sure you read what they have to offer in their policies including the PDS where you will find a description of the product offered, the benefits, fees and charges as well as any limitations to the specific policy.
• While filling out an application, you must fully disclose all aspects of your life by filling in the application truthfully. If not, then your claim can be rejected because of dishonesty.
• You should find policies that are inflated so that the coverage is equal to that of the cost of living from when you took out the policy.
• Always make sure that you fully read the contract and the agreement, especially to make sure there are no restrictions for certain occupations that may be of a dangerous nature, part time work, age or maternity leave.
If you follow these tips, then you can rest assure that your life insurance policy will help to financially support your family when you are gone.