Comparing life insurance policies provides comfort in knowing you’ve picked a suitable policy for you and your family or loved ones. Here are some of the key things you might look to consider when comparing insurers. You can find most of these things in the insurer’s product disclosure statement or, if you would prefer, you can always ask your Lifebroker insurance consultant.
Figure out what type of insurance policy you need
A ‘life insurance policy’ is what you or your family can be covered by should you become seriously ill, injured or pass away. Comparing a range of insurance products – such as life, trauma, total & permanent disability and income protection cover – between different insurers, helps you work out what would be suitable, what you will be covered for and the premium prices for different levels of cover.
Make sure you’re across all exclusions
‘Exclusions’ are the things that your insurance policy won’t cover, like certain events, illnesses or pre-existing conditions. Some exclusions may be applicable for the term of the policy, however others may be reviewable. For example, an insurer may initially not cover a recently broken leg, but might consider reviewing the exclusion at a later date. If you need coverage for something in particular, speak with your Lifebroker consultant to understand your options with some of Australia’s leading life insurers.
Determine whether you prefer a stepped premium or level premium
A ‘stepped premium’ is a more cost effective option when your policy initially starts, however the premiums increase with each year as you get older (because as you get older, there’s a higher chance of you falling ill or passing away).
A ‘level premium’ doesn’t change with age. It may however increase marginally with inflation or changes to the insurer's underlying premium rates. While generally higher when you first take out a policy, a level premium can help you budget accordingly and gives you more control over what you pay for in the long term.
Choose your level of cover
It’s important to select the right level of cover for your needs. Income protection is based on up to 75% of your income, however, there a few considerations when selecting how much life insurance to purchase. You may want to consider your debts, mortgage, income, cost of living, school fees and your savings among other things to understand how much money your family would need should you pass away or become terminally ill.
Cover calculators are a great way to get started and can help you get an understanding of the level of cover you may need.
Compare life insurance with Lifebroker
When looking for a policy that suits you, your family and your loved ones, it can be overwhelming wading through the various insurers and the policies they offer. Read our top tips on buying life insurance and Lifebroker’s comparison tool to discover more about some of the different policies available. If you’re unsure about how much cover you need, Lifebroker’s insurance calculator can also assist you by evaluating your family situation, income and debts.