Looking for life insurance? With many different options and features to choose from, navigating this space for the first time can be quite confusing.
So, we asked our SHARE advisers for some tips on how to get started.
Consider seeking expert help
On the surface, life insurance is pretty straightforward. When the insured person passes away, the policy pays an agreed lump sum to the designated beneficiary. This money can be used in many ways, including debt repayment and ongoing financial support.
However, not all life insurance policies are created equal, so you may want to consider getting professional insurance advice. Our SHARE advisers know the market, and by getting to know you, they can help you find a solution that’s suitable for your needs and goals. Click here to learn more about our services and please don’t hesitate to contact us if you need any assistance.
Assess your current financial situation
The life insurance decision is an important one, and it starts with a clear understanding of your financial picture. For example:
- Are you single or in a couple?
- Do you have anyone depending on you financially (for example, children or ageing parents)?
- Do you own your home with a mortgage?
- What is your level of debt?
These are just some of the key questions to start with. Generally speaking, if you have a high level of debt and/or family members relying on your income, life insurance is worth considering. It can protect your loved ones’ financial future and current lifestyle should anything happen to you.
But even if you don’t have dependents and don’t own a home, a small life insurance policy may still make all the difference – or they may be other types of insurance to explore.
Like to discuss your needs? Our SHARE advisers can help you understand what’s available and how it relates to your goals.
How much cover may you need?
Once you’ve identified that life insurance is suitable for your situation, the next step is to work out how much life cover is enough for you.
People often underestimate how much cover they need. In many cases, insuring the outstanding mortgage amount is a good place to start. But if you have dependents, you may also want to provide them with a replacement income for living expenses, or secure your children’s tertiary education.
Once again, one size doesn’t fit all: there are many factors to consider. So if you’re looking for a ‘good fit’ for your needs and budget, get in touch. We’ll be happy to talk you through your options.
Comparing insurance solutions
Many people think that life insurance is just too expensive, or choose a policy solely based on the lowest premium without weighing the pros and cons. But the reality is, you may not get the level of protection you’d expect.
Rather than looking for the lowest price, it’s a good idea to seek value-for-money – an insurance solution that provides the most comprehensive protection for your needs and budget.
Understand what your policy entails
As we said, not all life insurance policies are the same: features and benefits change widely from policy to policy, and from insurer to insurer. That’s why it’s important to understand what your policy entails before signing on the dotted line.
At SHARE, we take the time to explain the small print in detail and are always available for any questions you may have, from quotes to claim time.
Getting insurance online often seems like a quick and easy way to protect your future, with very few questions asked. But there’s a ‘catch’: the application process is not designed to capture your situation in detail, and the cover you get is not tailored to your specific circumstances – including your health history. This means that any pre-existing medical conditions you may have will likely be excluded from cover.
Insurance taken out through an adviser provides a more comprehensive, bespoke solution. Sure, it may answering a number of questions, but this information allows the insurer to really take your circumstances into account and make a decision on them.
The key thing is to disclose everything – no matter how insignificant a past medical condition might seem. Keep in mind that failing to disclose a medical issue, whether deliberately or accidentally, could see you uninsured or even uninsurable in the future.
Why life insurance is not a ‘set and forget’ transaction
Life insurance is not a one-off transaction but rather a solution that needs to evolve with you. Over time, your circumstances may change, so reviewing your cover on a regular basis is crucial. A new relationship, a new baby, a career change, your first home – these are just some examples of life events that can trigger the need to review your life insurance.
Our SHARE advisers are there for you, every step of the away: to answer your questions, provide you with a refresher of your policy details, and assist your family with the claims process.
Find a SHARE adviser near you
Ready to discuss your life insurance needs? Please don’t hesitate to contact us, or click here to find an adviser near you.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.