Life Insurance Service by Professionals in Melbourne
With many options to choose from, it’s very important to understand the different types of life insurance and tips for selecting coverage. Take some time to research all of the available options so you can make an informed decision.
Life Insurance, also referred as Term Insurance, provides a lump sum payment, when death or terminal illness occurs to the insured life. The legal owner of the policy can still receive payment even if they don’t have any relationship to the person whose life is insured.
When the insured person is diagnosed with having twelve months or less to live, payment will occur to provide your business with financial security.
Educate yourself on what type of life insurance is best for you.
There are basically two main types of life insurance – term and *permanent. To determine which may be best in your situation, you need to understand the difference between the two. A level-premium term life insurance policy generally provides coverage for a limited period of time, typically five to 30 years. When the initial term is over, you can continue the policy. However, the premiums are likely to increase. A permanent life insurance policy (such as whole, universal and variable universal life) are designed to provide coverage until you die, as long as you continue to maintain your required premium payments. Because of this lifelong coverage, permanent life insurance rates are typically higher than term rates. You may want to learn more about evaluating term vs. permanent life insurance.
Know how much you can comfortably afford.
Maintaining your life insurance is contingent upon your ability to make your required premium payments. How much you’ll pay depends on the type of policy you buy, your overall health, and many other factors. A good rule of thumb would be to buy as much coverage to meet your needs and can comfortably afford. Typically, you’ll have the option of paying monthly, quarterly, or on an annual basis.
Understand your beneficiary options.
The beneficiary of your life insurance policy is the person(s) who will receive the death benefit when you die. Whatever type of life insurance you apply for, the insurance application will require that you name a primary beneficiary. Can’t decide? Then you have the option of splitting the benefit, say, if you have more than one child. It’s also smart to name a contingent beneficiary in the event that your existing beneficiary dies before you do.
Be prepared for your medical exam.
Whether or not you will undergo a medical exam depends on many different factors, including the type of life insurance policy you buy and the amount of the death benefit. Because you may be required to undergo a medical exam, it’s best to be prepared by getting as healthy as you can. This could mean dropping a few pounds or even quitting a bad habit such as tobacco use. You may have the option of seeing your own primary physician or requesting that a paramedical examiner come out to your home or office.
Contact HIFS to speak with one of our experts regarding your insurance needs.
Our Service Locations
- Glen Waverley
- Caroline Springs
- St Kilda