Life Insurance in Australia

What is the best life insurance, how to buy life insurance in Australia, how much does life insurance cost? Everything you need to know, before hiring life insurance.

In a world that changes very quickly and at all times, investing in the safety of your family is one of the best decisions you can make, do you agree? In addition to the obvious reason, that is, to ensure that the heritage you have built does not deteriorate, planning for the future brings a lot of tranquility in the present.

In Australia, there are different life insurance products – life cover, TPD insurance, income protection cover, trauma insurance and so on. Before buying any type of life insurance in Australia, the insurer will provide product disclosure statement (PDS). Check out all important things (especially regarding COVID-19) inside before making the final deal.

Did you know that it is much cheaper than you think? And that it evolves along with your history and that of your family? Check out these and other questions below!

  1. Life insurance for and your dependents

If you have children, a partner or other type of dependent who has your financial support, you need life insurance. The main objective of this type of insurance is to guarantee the payment of an indemnity in the event of any event covered by the insurance. This is because, in the cases provided for in the contract, life insurance will guarantee financial security for your family.

  1. Calculation, how much to invest

If you are trying to understand the approximate amount of insurance you should take out, start by multiplying your annual income by 60% times the years left until retirement.

Do not forget to add the value of your company benefits to the calculation, such as health insurance. The next step is to subtract taxes! This way, you will’ve the money that your family will need if anything happens to you that prevents you from maintaining your income.

During calculation process, don’t forget to compare life insurance from different insurance companies in Australia.

  1. Life insurance is cheaper than you think

Many people believe that life insurance is much more expensive than it actually is. It depends on age, health, income statement, etc.

In Australia, if you have life insurance from Super, then you need not to buy separate life insurance from any company because Super funds already include a life insurance that is very cheaper cover.

  1. An important point: Life insurance is a smart investment

Life insurance cost in Australia varies1 according to age, sex, health and lifestyle. For example, a normal man over 40s needs to pay $4.40 weekly for a $250,000 insurance package. A woman of same age for same cover will need to pay only $2.80 weekly.

Spending $2-5 weekly for the life insurance is a great investment.

  1. Better understand the life insurance that a company offers in your benefits package

Many people believe that the life insurance offered by the company covers much more than it actually has capacity. Try to better understand the characteristics of what you are buying. To complement this understanding, it is worth reading the product disclosure statement (PDS) about the benefits that the company can offer you.

  1. Research about how insurance works

The more you compare life insurance offered by different companies in Australia, the more knowledge you will have to choose yours. Many people like to seek professional advice while others seek to understand the subject on their own.

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