Life insurance, or Life Cover, provides a lump sum on your death or on the diagnosis of terminal illness. Life insurance provides financial support when it’s needed most, giving your loved ones the financial freedom to make choices about their future. Research has shown that most Australians are underinsured or do not have life insurance at all which is alarming considering the increasing debt levels among Australians.
Our financial advice services include:
- Determining how much life insurance you may need
- Comparing various insurance product providers available to you in terms of price and features
- Setting up and implementing the insurance policy
- Negotiating with the insurer on your behalf, if any special terms or conditions are imposed and;
- Reviewing your policy regularly to ensure the cover continues to meet your needs
Term life insurance is the most common type of insurance because it is simple and low cost compared to other insurances. If you die or become terminally ill, you will be paid a lump sum. This can clear your debts and provide for your family (subject to individual circumstances and the sum insured).
You pay for life insurance through a regular premium. The cost of the premium is calculated based on your life expectancy as well as the insurance company’s risk assessment of you. In simple terms, the older the person, the higher the premium. Also, the higher the risk, the higher the premium such as if the person is a smoker or likes to participate in hazardous activities. The insurance company also considers your medical history. The premium is generally indexed according to the consumer price index (CPI), or a formula based on the CPI. Therefore, the cost of premiums usually increases throughout the term of the policy even if you are paying a level premium.
Most life insurance policies will pay the benefit early if you are diagnosed with a terminal illness with no chance of remission or recovery. This will help you clear your debts, cover medical costs and provide for the loss of your income if you are no longer working.
Give us a call on 07 3812 7122 to book an appointment.