Life Insurance AU – Understanding The Australian Market
Australian life insurance pays a lumpsum benefit to the nominated beneficiaries upon the death of the policy holder. The benefit ensures that the dependents are able to lead a comfortable life after the breadwinner dies. The life insurance AU industry is somewhat different from other countries and it is important for customers to understand their options.
Is Whole Of Life Insurance Available?
Universal or whole life insurance is no longer offered by Australian insurers. This cover was replaced with term insurance. Term life provides cover for a specified period of time. The benefit is payable if the insured dies within this period. Once the policy expires, you can apply for a new cover or renew your policy. Depending on the cover provider, new medical underwriting may be required.
Options Available
Essentially, there are four types of life insurance plans to choose from. The policy holder has the option to purchase them separately or bundle them up.
Income Protection Insurance
This provides an ongoing replacement income which is normally 75 percent of the policy holder’s income. It is paid in the event that the insured is unable to work due to an illness or injury. Most policies will allow the insured to choose the cover period, which is often between 6 months and 2 years. Visit us to get more information about income protection insurance.
Term life
This provides a lump sum payout if the policy owner dies or is diagnosed with a terminal illness.
Trauma Insurance
This also provides a lump sum in the event that the insured suffers an injury or illness which should be specified in the policy.
Total And Permanent Disability
This also provides a lump sum if the policy holder becomes permanently disabled.
You can also find policies covering death, accident and funerals as stand-alone policies which can be bundled to provide sufficient cover.
Who Is The Benefit Paid To?
Life covers will provide payment to the beneficiary nominated by the policy holder. For other types of cover, the payment is made to the insured. Payments are payable through check, debit or credit card. Insurers will offer monthly, half yearly, fortnightly or annual payment plans.
Life Insurance Needs
It is important to assess your life insurance needs depending on your financial obligations. Consider expenses such as mortgage or rent payments and outstanding debts. You must also assess the needs of your children, such as their education. Consider what your spouse is earning to arrive at a realistic figure.
Factors Affecting Premium Payments
Premiums are determined based on the risk factor you carry. There are several factors that will be used to asses this. Most insurance companies will have their own criteria but most will consider gender, age and health condition, habits such as smoking or drinking, and occupation.
The life insurance AU industry has witnessed immense growth. Many companies have joined the industry, offering unique features to their customers. In light of the competition, customers stand to gain a lot in terms of the products being offered. A comparison will help you make an informed decision bearing in mind the products may differ slightly but significantly.
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Life Insurance AU is a post from: http://www.mecovered.com.au.
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