Each of us take out life insurance for different reasons. For some, it’s to make sure our family is looked after when we’re gone. For others, it’s so we can rest easy in the knowledge that our income is protected – even if we’re badly injured.

But how do you know a life insurance policy is the right one for your situation? It’s easier than you think.

Term Life Insurance. You could call this product ‘standard’ Life Insurance, and it’s fairly easy to understand. In the event of your death, or the diagnosis of a terminal illness, it pays a lump sum to a person/s of your choosing.

  • Generally suited to anyone concerned about what happens to their family if they unexpectedly pass away.

Total and Permanent Disablement Insurance (TPD). TPD Insurance is a massive comfort to anyone worried they could get injured to the point where they wouldn’t be able to resume work anymore.

  • Consider TPD if you’re concerned about paying for expenses if you were no longer able to work.

Trauma Insurance. Many call Trauma Insurance ‘recovery insurance’. If you’re diagnosed with a certain illness or are injured, trauma insurance provides a cash benefit to help pay for things like medical expenses while you recover.

  • Consider trauma if you’re worried about the idea of expensive medical bills in a time of crisis.

Other things to consider

  • High risk individuals beware. Whether you’re an astronaut or an accountant with a dangerous hobby, some of us are riskier insurance prospects than others. If this sounds like you, don’t despair: there are still ways for you to insure your life.
  • Stepped premiums versus level premiums. You can structure your premium in a few different ways. Level favours those who are looking to take out insurance long term. Premiums start out a little more expensive, but over time can be more cost effective. Stepped premiums are initially cheaper, but increase with your age, and become more expensive over time.
  • Stand-alone versus linked policies. There are plenty of different types of insurance you could take out to insure your life and income. There’s nothing stopping you from getting a linked policy to get benefits of two or three of those products though!
  • Policy riders. If you’re getting your life insurance but require special addendums to your policy, you should look into policy riders, or ‘optional benefits’. They could mean the difference between a standard and a tailored policy…for a price.

Ready to compare policies that are suited to you? Then compare life insurance with us!

The information provided here is general only and does not consider your personal objectives, financial situation or needs. Before you decide to purchase a product, it is important to read the relevant PDS..