Choosing life insurance doesn’t need to be difficult. Many people put off the task of choosing life insurance because they think it will be too much of a chore, or they don’t know how much insurance they need, or even because there is too much choice out there. However, once you know what to look for, getting the right life insurance can be simple!
1. Figure out How Much You Need
The first thing you will need to do is figure out how much insurance you need. To do this, you will need to take into account a number of factors. Whether you have children or elderly relatives as dependents. Whether you have debts that need to be paid off, such as a mortgage, a car loan or credit cards. To help work out what level of cover you need, it can be helpful to use an online calculator. Failing that, you could always get the advice of an insurance expert (just make sure to choose one that doesn’t work on commission).
2. Find out What You Need
Don’t be fooled into thinking life insurance is just one standard product. There are actually many different types of life insurance all categorized under the one heading. So, you may need income protection insurance to protect your income, funeral insurance to get a payout to cover funeral expenses, or standard life insurance to offer financial assistance to help those left behind.
3. Don’t Undervalue Yourself (Or Your Partner)
If you or your partner is a stay-at-home parent or a part-time worker, then it is essential that you don’t undervalue the work that is done at home. For all the work done at home – cooking, cleaning, childcare, laundry, gardening, and so on – you need to think how much it would cost to employ an outside party to come and do it. You’ll probably find it really adds up!
4. Shop Around
Just as you would shop around for a car or a vacation, you should also shop around for life insurance. It can help to start off with a comparison site to narrow down your options. Compare cover and price, but bear in mind that the advertized price may be different to the price you get, as it will usually be an estimate. Once you have a shortlist, you can start looking at each policy in more detail.
5. Get a Rider
A rider – also known as an add-on feature – can be added to a standard policy so that it is better tailored to your needs. Popular riders include the Term Conversion rider, which converts a term policy to a permanent policy, or the Return Of Premium rider, that returns all your premiums if you outlive your policy. Each insurer will have different terms and prices for each rider, so be sure to check out what is on offer before you just sign up for the standard policy.
6. Read the Small Print
While it can be a tedious task, reading the small print is essential when it comes to life insurance. The devil is in the details, as they say, so it pays to know exactly what you are signing up for. Check for any exclusions that could prevent you from making a claim, or any terms or conditions that would make the policy unsuitable for your needs.
7. Read Reviews
One of the most effective ways to find out if an insurer or a policy is worthwhile is to read reviews. You can check out independent review sites or go on forums to find out what other people are saying. Take everything with a pinch of salt, but what you do find may help you stay to away from policies or providers that are too expensive or untrustworthy.
Life insurance is an important step towards protecting your way of life, and that of your family. The Suncorp Group helps offer this kind of protection. It can give you peace of mind, and can offer financial support when it’s needed most.
*Image Credit – Freedigitalphotos.net
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