This article has been prepared by NobleOak Life Limited ABN 85 087 648 708 AFSL No. 247302 (‘NobleOak’). FlexiCover Life Insurance is issued by NobleOak. Qudos Mutual Limited trading as Qudos Bank ABN 53 087 650 55 AFSL/Australian Credit Licence 238 305 (‘Qudos Bank’) is not responsible for the FlexiCover Life Insurance product. Qudos Bank promotes the FlexiCover Life Insurance product under a marketing arrangement with NobleOak but does not provide any financial advice regarding the product.
Knowing the steps and some important details can make the process very straightforward.
Getting Life Insurance can at points seem overwhelming.
It’s not the most cheerful subject to think about and certainly isn’t any fun to handle. Plus, some people can find it confusing as it seems like a complex subject, and because of all these reasons, people tend to disregard it. However, Life Insurance can be a pillar of financial stability for the whole family. It’s potentially a crucial step to take when it comes to financial security.
For some, death, serious disability or illness can come unexpectedly. Since that’s the case, it’s best to prepare if life takes a turn for the worse in the most efficient way.
Life Insurance can bring the most security to your family, so taking some time to get to know what the options are could prove essential in the future. Besides, most of the complications are only surface deep. Getting Life Insurance is, in fact, much easier than it seems. All it takes to make the process more straightforward is to scratch that surface.
There are several questions to answer that will create a good starting point in choosing your Life Insurance. In this article, you’ll find out everything you need to get started.
Getting Life Insurance – Five Questions to Answer
The bulk of the confusion about Life Insurance comes from not knowing what’s important. But once you have the vital questions answered, the matter will look much less complicated.
1. What Type of Insurance Do I Need?
The main type of Life Insurance in Australia is term Life Insurance. But before 1992, there was a whole Life Insurance option, which superannuation has since replaced. You may like to take the time to review any life insurance you may hold within your super and consider if it's still right for you.
2. How Much Insurance Do I Need?
Of course, you can’t exactly predict how much insurance you might need. But you could narrow the figure down with careful budgeting.
Here are some considerations when it comes to planning your Life Insurance:
- What are your family’s regular living costs? Do you have any plans for reducing or expanding them in the future?
- Do you have personal savings? What assets do you have available?
- What’s the state of your loans and credit cards? Do you have a mortgage and how much do you owe on it? Do you have other debts and how long would it take to pay them off?
- What would your family’s income look like after your death? Are there other sources of income they could count on?
Once you answer these questions as best as you can, you’ll have a clearer picture.
Other factors you can take into consideration will depend on your life circumstances. For example, if you have small children or are planning to have kids, include the costs for their future education. You could also consider a retirement fund for your partner.
3. Where Can I Buy Life Insurance?
There are plenty of ways to buy Life Insurance. To start with, you can do it through an insurance company. There are also independent financial advisers and those that work online.
However, a respectable company might be the best way to go.
Financial advisers may offer a good deal and provide you with a number of options to consider, but dealing directly with a Life Insurance company may also be a good option and in some cases more affordable. Also, the experience will play an important role. You might need additional help or clarification about certain terms and conditions. A reputable Life Insurance company can provide that and create an offer that best suits your needs.
4. When Should I Consider Life Insurance?
The right age to buy Life Insurance will depend on your circumstances. The most reliable sign of a need for a policy is if you have people who depend on you financially. In most cases, this would mean your family.
If you can predict with certainty when you’ll have others depending on your income, you can adjust the policy accordingly. The most obvious example would be when you’re planning or expecting kids.
And if you already have unsecured debt, Life Insurance could be a wise choice. For example, with credit cards, the balance does not go away after death or if you can’t work due to an illness or injury and earn an income. The debt will still exist, and could impact those closest to you. Most loans, including student loans, would function the same way. In the event of a claim, you or your beneficiaries will be in a position to make important decisions regarding your debt situation.
5. What Can Life Insurance Cover?
It’s useful to know everything your Life Insurance can cover. Knowing this will help you make a decision and have a more detailed plan for the future.
The most important is likely the financial protection your family might be eligible for. Your policy could ensure that the home budget doesn’t become overburdened without your salary. Life Insurance can be an effective way to secure the future education of your kids.
Debts and mortgages can come as a shock in the event of a claim. If there are debts left behind if you were to die, or if you can’t work due to sickness or injury and earn an income, those might be too much for your family to handle. With Life Insurance, you and your beneficiaries will have the financial means in place to help manage the outstanding debt that is held.
Funeral costs are also an expense most people don’t like to think about. However, they can present a significant blow to the family budget. Additionally, dealing with them is more stressful for people who have just lost a loved one. Again, Life Insurance could help with that. Not having to worry about the funeral costs can somewhat alleviate a difficult situation.
Creating a Better Potential Future with Life Insurance.
After careful consideration, you’ll now have a better understanding of what kind of Life Insurance would be best for you.
The choice is probably one of the more important life decisions to make. While experts on the field might provide detailed insight, the best starting point is to ensure you know what you’re aiming for.
The process of getting Life Insurance isn’t as complicated as it seems. But like other vital decisions in life, it requires your full attention. Dedicating time to figure out the essential questions could bring you closer to choosing the ideal policy.
To insure or not to insure?
That is a question that only you can answer. You may choose to get some professional advice, or to carefully consider your own needs and circumstances and deal directly with a Life Insurer like NobleOak who can provide you with general advice and product information.
This is general information only and does not take into consideration your individual circumstances, objectives, financial situation, or needs.Click here for a Quote from NobleOak.
Visit www.flexicoverlife.com.au/qudos for a Quote from NobleOak.
NobleOak Services Limited (wholly-owned by NobleOak) pays Qudos Bank an ongoing commission of 16.5% of premium when products are acquired as a result of the marketing arrangement. This commission is at no additional cost to customers. Further information can be found in the NobleOak Financial Services Guide (FSG) available at www.nobleoak.com.au and in the Qudos Bank Financial Services Guide (FSG) available at www.qudosbank.com.au.
Published January 2022