Life Insurance Guide

Congratulations on taking the first step in protecting you and your family by considering taking out a life insurance policy!

There are a number of options for you to consider when taking out a personal insurance policy such as Life, Trauma, Income Protection or TPD Insurance.

This guide has been put together to help you with your insurance comparison.

Life Insurance – What you need to know

1. Why should I take out Life Insurance?

A life insurance policy can help to protect your beneficiaries financially if you pass away and are no longer around. The lump sum benefit provided can help to pay off a mortgage or any other debts, cover day to day living expenses or to give your loved ones financial security. It can give you peace of mind knowing your family is protected financially.

2. How much cover should I take out?

The amount of cover you should take out will come down to you and what you want. In general, people look at taking out cover that is 10 to 20 times their annual income. When you are deciding on what level of cover you require, it is worth considering any ongoing financial obligations you have and is therefore important to bear in mind:

3. When is the best time to take out a life insurance policy?

It is important to take out a life insurance policy as soon as possible as your health status may change – you are generally never as healthy as you right now!

You also need to consider whether or not you have any ongoing financial obligations which you are committed to. In general, most people take out a life insurance policy when significant life events occur – this may include:

In general, if you are thinking of starting a family or if you have any dependents or any debts, it may be important to take out a life insurance policy to help protect your family.

4. When will my life insurance policy expire?

Generally, life insurance policies expire at the age of 65 - 100. However it is important to review your PDS and clarify what the exact expiry age of your policy is however it is generally possible to get an expiry age of up to 100.

5. What other types of personal insurance are available?

There are a number of personal insurance types available, including:

6. Who will receive my life insurance benefit?

Your life insurance benefit will be received by your nominated beneficiaries which can be any person or entity you want your lump sum benefit to go to. It can be a spouse, child or another family member, an organisation or trust or a combination.

You can generally choose up to 5 beneficiaries (as is the industry standard) as well as choosing what percentage of your benefit you want to go towards each beneficiary. However different insurers may have different requirements around nominating beneficiaries.

8. What factors will affect my premiums?

The amount you pay for your insurance (known as your premium) will be dependent on a number of factors:

If you would like to compare life insurance quotes now, simply enter your details in our quotes page and a consultant will be in touch with you shortly to discuss your options. Don’t forget to ask about what other personal insurance options are available!

Information provided by xLife Pty Ltd, a corporate authorised representative of Millennium3 Financial Services Pty Ltd, AFSL 244252.

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