Guide to life insurance

If you’ve never had an insurance policy before or even if you have, life insurance can seem pretty complicated. To start with, the term itself could almost be described as a catch-all, umbrella term that covers a lot, including income protection cover, total permanent disability cover and death cover. It’s a topic that can’t really be sugar-coated so we won’t even try - what we will try to do is give you the facts.

After you’ve worked out whether or not you need life insurance, the next step is working out what level of cover you need, and the key here is balance.

As the old saying goes, there are two things you can count on in life: death and taxes. Life insurance is all about planning for the former (even if it’s not really pleasant to think about.)

When you purchase a vehicle from a car dealer, you'll probably be offered a whole lot of extras. While an alarm system or GPS navigation may be worth forking out extra for, one add-on you should avoid at all costs is life insurance.

Life insurance is meant to be a safeguard for the tough times in your life - to give you peace of mind in the event of a loved one's death or to guarantee your financial safety if something happens to you and you’re unable to work. So the last thing you want to have to deal with after making a life insurance claim is a rejection.  

In the market to purchase a life insurance policy? Then you’ve got two choices. Either you can purchase a policy directly from an insurer, or get one through your super fund.

If you’ve decided to bite the bullet and buy a life insurance policy, you should take the time to work out which of the key features on offer are important to you. After all, this is one insurance policy you could wind up sticking with for the rest of your life.

Life insurance is supposed to give you peace of mind that if you die your loved ones will be protected, but recently insurers have been publicly criticised for employing outdated definitions in order to avoid paying life insurance claims, using in-house advisors to favour their own insurance policies, and linking the pay of staff to claims outcomes.

Whether you see being unable to work as a stressful experience or a chance to catch up on your Netflix binging, there’s one thing that you can definitely count on: the bills still need to get paid.

Longstanding superannuation fund Equip Super will change how it manages life insurance from 1 October, 2020.Equip chief member officer, Tania Cumming said the changes will focus on increased flexibility and member input.“In reviewing insurance products and talking to our members, they were clear that they wanted insurance that responded to their lifestyle needs. And critically, they wanted us to deliver these options to them rather than them having to construct it themselves,” Cumming said.While some members will see their life insurance premiums increase, Cumming said the changes are designed to meet long-term needs.“Key to getting this right is working to ensure that our insurance products align to members’ lifestyles and financial aspirations as well as offering long-term value, rather than short-term changes. It is important that we take a balanced approach that is both affordable and sustainable.”

As pandemic conditions and restrictions continue to develop across the country, the mental well-being of impacted Australians is becoming a top concern.This has become more evident in national discussions since early August, when Victoria’s lockdown was reinstated – with even tighter restrictions for metropolitan Melbourne – after a sustained spike in Coronavirus cases.In an ABC News Breakfast interview this week, deputy chief medical officer professor Michael Kidd recognised the mental and emotional impact of prolonged isolation.“Please look after each other, please look after your mental health. If you are feeling particularly depressed or anxious as a result of the restrictions which are in place, please reach out to Lifeline, Beyond Blue, the other resources,” he said.

When we’re young we tend to live life on a whim. But as we get older, get married, have kids, grow careers and more, we come to the realisation that life insurance could be an important part of having a sound financial plan. After all, nobody knows what tomorrow holds. The fact is, life insurance can be confusing, and it’s hard to know what you really need. So, it’s important to research and compare the plans that are out there; what they include, how much you’ll pay, and ultimately find one that is aligned with your individual needs. For the second year in a row, Mozo money experts took to the stage, sifted through the nitty gritty of 25 different providers of life insurance to find Australia’s best value and quality direct life insurance for 2020. “Our research showed there were vast differences between features and policies, as well as incredible price variations of up to 50% between similar policies on the market,” said Mozo Experts Choice Awards judge, Peter Marshall.

According to a recently released survey by KPMG and the Financial Services Council, life insurance claims related to mental health increased by a whopping 53% between 2013 and 2018. This new research is very timely, given that a large number of people across the country have just spent months inside due to the Coronavirus pandemic.