How to Choose a Company to Buy Life Insurance From?

Once the first steps have been taking in recognising the need for life insurance an insurance broker can help you through the rest of the process.  We sift through all of the policies available and see what fits best. Here is your checklist:

• Use a life insurance broker
• Choose a company with a high rating
• Look out for companies with hidden exclusions
• Ensure they have a good track record with paying out claims
• Make sure you are comfortable with your decision

It’s important to choose a reputable insurance company. Lifebroker only deal with companies that have high ratings. Since Lifebroker is not an insurance company, its best interests are finding the most comprehensive polices on offer for its clients. Insurance agents like Lifebroker, compare all the top rating companies to find the fit that is best for your needs.

Not every insurer is looking out for the best interest of the public. Some insurer’s have ‘hidden’ exclusions that are not apparent upfront. It is generally quick and easy to apply with these companies, as they do not medically underwrite your policy upfront. You can end up paying for a premium for years, even tens of years, only to find out at claim time you are not covered.

A common myth in the insurance industry is that the insurance company will look for ways to decline your claim. According to The Lifebroker Research Report 67% of respondents said they agreed (strongly/somewhat) with the proposition that insurance companies tend to use loop holes to avoid payouts. The fact is, 90% of all claims are paid out. Agents like Lifebroker, will only use companies that have a history of paying out claims fairly. Our dedicated claims team ensures this.

An insurance broker will discuss with you what your needs are when it comes to life insurance. There are generally two main considerations when determining the level of cover.

Paying off debt

When it comes to life insurance, people are generally considering their loved ones. If you are to die, you wouldn't want to leave your family with lots of debt? Your debts may include mortgage, personal loans and credit card debts. They can also include foreseeable expenses, such as children’s education costs.

Earning an income

People like the idea of being able to protect their income, should they fall ill or injured. Australians are falling sick or injured, as many statistics will tell us, and income protection can cover 75% of your monthly income.

Your insurance agent will then find the company who offers the lowest premium for you based on a combination of factors. This includes your age, gender, the state you live in, smoker status and occupation and income.

You will then receive quotes, generally from the companies who are willing to offer you the lowest premiums. You will also be sent a statement of advice. You can discuss with your insurance broker, which company you wish to go with. You should then receive the insurer’s Product Disclosure Statement, which details what the product includes and details of the company.

Having a broker can help make the decision of buying life insurance a little less complicated.  There are many companies that will insure you, however, you need to find the right company and product that suits your needs.