If you only do one thing this year…
We all start the year with great intentions. So many new year goals to aspire to, goals we generally stick to for a month, three months if we are really committed, then the year gets busy and life takes over and the goals we set in January fall by the wayside. This year, how about getting your goals set and complete within that first, motivated month? If you only do one thing this year, check that your personal insurance cover is in place, and is correct for where you are at this stage of your life. With suitable advice and the right insurance policy in place, you could save yourself time, effort and energy should an unexpected event occur this year.
What life insurance?
Whilst many of us may have insurance on our homes and our cars, it is likely we are not insured ourselves and probably do not realise that having life insurance is an important financial safeguard for our family and loved-ones if the unexpected occurs. Discussing life insurance can be a sensitive topic, but without planning for the unexpected, it could be incredibly difficult for many families to maintain their current standard of living. Life insurance should provide financial security for your dependents if you die. Generally, the policy should clear the mortgage and significant debts, and provide a nest egg for the family. There are many policy options and ways to purchase life insurance such as contacting a provider directly either online or over the phone, purchasing through your superannuation, or talking to a financial adviser. Purchasing life insurance involves making decisions such as choosing which cover level is suited to your needs and which benefits you should consider. The options and range of policies available can sometimes seem complex. So what are the ways to select and purchase a life insurance policy that is suitable to your circumstances?
Ways to purchase insurance
Online and over the phone offers convenience, often with minimal or no medical information required, and the approval process can be immediate. When comparing insurance policies online, it is important to do the research and ensure you understand exactly what is included and excluded in each policy. Direct life insurance may be quick to arrange, but you may be less able to select and tailor a policy that suits your needs so if you do decide to purchase direct, understand any policy exclusions before you sign up. Some direct life insurance policies reduce the amount of cover as you age whilst others may exclude cover of pre-existing conditions at the time of applying. Cover provided by direct insurance may also have lower payouts than a policy arranged through a financial adviser, so it is important to read the ‘fine print’ if you don’t have a financial adviser to assist
with your decision. If you choose to engage a financial adviser to assist you with your personal insurance cover, one of the benefits is that they do the research so you can choose suitable policy with the right coverage and amounts for your needs and budget. They can also assist with processing a payout in a timely manner, should you need it. This is an important key benefit as it is a process you will most likely not want to go through alone if you are dealing with a difficult time in your life. A tailored life policy arranged through a financial adviser can often be more economical and better value for money, with the added benefit of confidence that the policy is more likely to be suitable to your circumstances as your adviser has helped to source the most appropriate policy for you. It is not a ‘cookie cutter’ solution and service.
If you feel you, or a member of your family, would benefit from a review of your personal insurance policy or would like to discuss the type of policy that is right for you right now, why not contact our office and make an appointment to discuss your individual situation and options? We would love to hear from you.
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