Wednesday, April 25, 2012

Life Insurance Policies You Can Get in Australia

Life Insurance Quotes
One of the best and easiest ways to provide financial security for yourself and your family is to get insured. If you live in Australia, there are basically 4 types of life insurances you can purchase: life term insurance, which are the most popular insurance policy, universal coverage, whole life coverage and endowment. Not all insurance policies are made equal and with so many insurance agencies, banks and financial institution competing for your money, you have to compare life insurance quotes of different companies before settling for one.

Let's find out about each of the 4 types of life insurance policies that you can buy in Australia.

•    Life Term Insurance: This is how all insurance policies started. This life insurance provides coverage for a fixed period of time for a fixed premium. The fixed period, called the relevant term, can be 10, 15, 20 and 30 years. Your beneficiary will receive the death benefit if you die before the relevant term expires. If you are still living when the insurance expires, you will have two options: either to forgo the coverage or agree to a new one with new terms and conditions. Although this doesn't sound so attractive at first, this is the best selling type of insurance in Australia as you can purchase a considerable amount of death benefit with a relatively small premium.

•    Whole Life Coverage: This is a permanent type of life insurance. It lasts as long as you keep paying the premium or until you die. In this type of life insurance, death benefit to your beneficiary is guaranteed. Most whole life coverage requires you to pay the premium every year until the end of the contract. You will have three options for paying the premium: small premiums each year as long as the policy lasts, larger payments within a few years, or start with lower premium and increase the premium later. Smokers and those with life threatening diseases like heart disease and cancer have a higher risk of dying and thus are usually required to pay larger premiums.

•    Universal Coverage: This is also known as universal health coverage. It is a largely government sponsored healthcare system that provides coverage to all individuals. Most affluent countries around the world provide universal coverage in one form or another. In Australia, universal coverage is called Medicare, which provides medical services at a minimum cost to the insured according an agreed schedule.

•    Endowment: This is a type of insurance which guarantees payment of an agreed lump sum to you or your beneficiary after a specified period, called maturity period, or after you die. Maturity periods are typically of 10, 15 and 20 years. However, you can surrender your endowment policy before your contract expires, but you will not receive the full amount as it depends upon the amount you have paid until that time.

Universal coverage is the only one provided by the federal government; the rest are provided by private insurance companies. You may like one or all of the insurance policies. But you must compare life insurance quotes of different agencies before purchasing any of them so as not to be lured into a bad policy.

5 comments:

  1. very great insurance policy, huge coverage. Hope Philippines insurance companies will adopt this kind of policies. thanks for sharing this article.

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    1. I think you can still find that kind of life insurance coverage in the Philippines as well. Just keep looking for the ideal life insurance plan for your family.

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    2. I hope so because some of life insurance companies here in Philippines have so many issues which for me in my own opinion cannot guaranty the coverage of each insurance plan.

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    3. Yeah you're right, but sometime I feel worry cause some Life Insurance companies have issues regarding their plans specially on the news that there plan holders goes down or closed, I hope I find some insurance company. Thanks for sharing...

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  2. People who are typically in great health must look into getting life insurance coverage that needs a medical exam, as they can often get a better rate on premiums or more ample coverage.

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