We all need life insurance. This becomes even more important if we have people depending on us, such as our spouse or children. However, getting insured is often a confusing affair, since we're not exactly sure how much cover we need, what type of insurance suits us, and where we can get the help we need when we need it.
In this article, we'll give you a brief round up of the essential things you need to factor in when getting life insurance. We recommend that you read this first before even talking to an insurance company. By being armed with information, you can proceed with confidence on whatever decision you make. So if you're ready then read on.
Choosing a Life Insurance Policy
Before choosing a policy, you need to know first of all what it covers. This helps ensure that you will be adequately covered when you and your family needs it. Otherwise, you might be in for a nasty surprise of having not enough coverage.
It also helps to know how much you can claim and the conditions that cover it. This is important because your insurer might not cover certain types of illnesses, which could put you at a disadvantage later on if you're diagnosed with the same condition.
In addition, ask how much the premium costs and other expenses that might be involved. All these information will help you know exactly how much it will cost you to pay the premium, as well as additional costs if you decide to upgrade or switch policies.
Deciding on Your Cover Amount
You need to have a clear idea of how much your family usually spends on a monthly basis, as well as your financial obligations if you want to know the amount of cover you need. The general rule here is that you need ten times the amount of your annual salary and the addition of your debts and possible expenses to get you and your family adequate coverage. So if for example you earn $100,000 annually and you currently have $50,000 in debts (mortgage, credit card, car loan), you'll need at least $1,050,000 in coverage, plus about $5,000 for funeral expenses.
However, keep in mind that it is merely a rough guide, as your needs may be different from other people. It is therefore important that you speak with the qualified advisors at Rate Detective. They will assess your personal circumstances and provide you with comparisons of the offerings from Australia's top insurance companies. Contact us today!