We have all questioned who needs life insurance, but when it comes down to it, it can be an absolute asset to those you hold dear. Losing a loved one is the most challenging thing we go through in our lives, but if there is one thing we can do to relieve some sort of burden in our passing, life insurance is definitely it.
When you’re paying it, it might feel like a waste of money, but take it from us; it is one of the kindest things you can do to those who mean the most. Today, we will talk about a few of the critical points concerning life insurance, what you need to make sure is in your policy, and why it needs to be updated if it doesn’t already cover the essentials.
Things you may not know your life insurance can cover
Of course, we all know that life insurance is there to provide a lump sum payment to those you love after your passing. However, there are some additional features that life insurance in Australia can cover, so make sure they are on your policy.
- Indexation: This is a fantastic feature that means the amount you are insured by increases year by year with inflation or an agreed percentage. If you include this in your policy, it will ensure that your loved ones are left with something truly substantial.
- Funeral Costs: These costs can be harrowing, but if you include this in your policy, the insurance company will give an advanced payment to cover everything, so your loved ones don’t have to.
- Terminal illness cover: These days, many policies offer this. If given an estimated time to live, there will be a payout to help the insured person pay off their debts, bequeath their loved ones, and make the most of their time.
- Life Insurance being too Expensive is a Myth.
You may hear people claim that life insurance premiums are too much or not worth it, and we are glad to say that that is false. There are two types of coverage you are likely to find: specific policies and broad coverage. Broad coverage is a brilliant safety net that covers several eventualities, so it will come with high premiums. However, if you know what you are looking for, you can cut costs by opting for specific policies.
So now you know
As long as you are aware of the specific policies you want your life insurance to cover, you can gain peace of mind for a reasonable premium. Remember, it is always important to carefully read through your insurance policy before agreeing to it. Learn a bit of lingo, and make sure your policy suits your needs. Life insurance is a fantastic way to give both you and your loved ones peace of mind and financial stability and avoid leaving behind any unpleasant financial surprises.
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