Cheap Life Insurance Policies, Do They Exist?
Saving that extra dollar is an all too common ideal, particularly if you have a family. In today's economic climate we have to be able to stretch that extra dollar and make it really count. There are a number of budgetary constraints that we can apply to a number of things, but it has not always been known that you can also apply this train of thought to life insurance.
So how can you save money by buying cheap life cover? And is cheaper necessarily better?
Are cheap life insurance policies better?
When it comes to life cover, you get what you pay for. It means you need to carefully assess how much coverage you need and stick to that figure. Doing this ensures you are neither over insured, or underinsured, and can help you find a competitive rate.
There are a number of ways to calculate how much life cover you need. One method multiplies your annual income by ten. This method is simple and gives you a guideline to follow when comparing quotes.
The other method determines how much life cover you need by calculating your debt, inflation, future bills, and future income needs of your loved ones. While this method may seem more accurate, it is not always possible to predict how much income your family may need in the future.
Once you have calculated how much cover you need, you should obtain a number of quotes to conduct an adequate comparison.
Where to find cheap life insurance policies
You have the option of speaking to a financial adviser or going online to do your research. Advisers do offer experienced advice, however the internet also offers a platform where you can gain a number of promotional discounts not offered through financial advisers.
It may be prudent to look at both options, and then perhaps decide once the quotes have been compared.
As previously stated, you get what you pay for, and cheaper does not always mean better. Some policies have built-in or optional benefits which in the long term are more beneficial to your situation. So when buying life policies it is a good idea to compare the benefits and clauses outlined in the product disclosure statement (PDS).
Cheap life insurance policies in Australia
It is actually possible to find cheap life coverage online; it's just a matter of finding competitive quotes without compromising on quality of cover.
Compare policies based on the same payment structure, do not compare level premiums with stepped premiums. Once you have narrowed your search to around three policies, carefully read the PDS and list the benefits and clauses that are helpful to your situation. If you are still unsure after conducting your own analysis seek advice from a qualified financial adviser.
by: Grant Main