According to TAL reports, nearly 50 per cent of Australians don’t have a life insurance policy. Surveys have shown the primary reason for this, is because they think it’s too expensive.
But you can insure your family for less than $25 a month
Truth be told, in the long run, not having insurance costs a family more than actually having one. Especially in Australia, where rates continue to lower by leaps and bounds, making life insurance more affordable than ever before. (Less than $25 a month is proof of this.)
The factors that affects the cost of life insurance are age and health. The younger you are when you buy life insurance, the less you will pay in premiums. The financial terms become even more favourable if you’re a non-smoker with good medical history.
The cost of insurance depends on the type of life insurance policy you decide to buy. There are a variety of policies you can choose from. They include:
Life Cover (Death Insurance)
The most basic form of life insurance, this pays out one lump sum in the event the policyholder dies, to their loved ones or dependents.
Funeral insurance covers the costs of end-of-life expenses, which can often be surprisingly high and often taps into the inheritance received by the deceased’s family, causing financial strain. It covers up to $30,000 in funeral expenses and is paid out in one lump sum.
Accidental Death/Injury Insurance
This is either available in the form of a lump sum or income protection in case the policyholder suffers accidental injury or death. It will protect you financially if you’re seriously injured in an accident. And it will protect your family financially if you, well, die.
There are other forms of insurance too. With a little bit of online research, it’s pretty easy to find out the one that will suit you best.
Life insurance will also give you peace of mind regarding the people you love
Sure, things are okay while you’re working hard to make ends meet. But have you ever stopped to wonder what would happen to your family without your financial support?
The comfort life insurance offers, through the protection it provides, is not to be sneered at. Having a life insurance policy will give you confidence about your family’s ability to (financially) survive in case something happens to you. The proceeds can provide for a family’s needs for many years.
Start comparing life insurance policies now
Don’t buy the first favourable plan you see, of course. Take the time to compare different policies to choose one that is right for you – in terms of price and coverage.