Life Insurance Plans

A life insurance plan is one of the easiest ways to provide financial security for your family and loved ones.

By having an appropriate life insurance plan in place you can ensure that your surviving family and loved ones are looked after financially when you’re not there to look after them yourself.

What is a Life Insurance Plan?

Life insurance plans are made up of a number of different factors including the amount you are covered for and how you would like the benefits distributed in the event of a claim.

Your life insurance plan could for example be for a total of $1 million, with $500,000 to repay your mortgage, $300,000 to go to your wife and $100,000 to go to each of your two children.

Some life insurance plans are very basic, whilst some are very complex and are tied in with professional estate planning.

Ultimately a life insurance plan should be there so that you can provide affordable financial protection to your family and loved ones.

How Much Insurance Do I Need?

The amount of life insurance you require really depending on what your plan involves.

If your plan is to simply repay the mortgage and leave a lump sum for your wife, then you just need to add those two figures together.

If you have a more complex plan that involves multiple debts and the need to cover ongoing income and expenses for each child for various periods of time, then obviously more complex calculations will be required.

For those who are unsure of how they should structure their life insurance plan and how much cover they require, the best option is to consult with an insurance expert such as financial adviser or financial planner.

A financial adviser can assist you with formulating your life insurance plan and obtaining quotes from multiple insurance companies.

How Do I Pay For My Insurance Plan?

There are numerous ways in which you can pay for your life insurance.

One of the most popular methods is a monthly life insurance plan.  This involves a direct debit from your bank account or credit card which covers your insurance premium on a monthly basis.

You can also opt for an annual plan, and some insurers even offer options for quarterly or half-yearly payment plans.

If you also have an income protection plan in place you may be able to combine your insurance premiums into one easy payment.

Insurance Plan Quotes

Quotes for life insurance plans can be obtained from a variety of different sources.

Many Australians choose to obtain quotes from financial advisers who can access a variety of insurance company systems at once.

An alternative is to contact each insurance company directly in order to obtain quotes, however this can be time consuming.

You could choose to take out a life insurance plan with one insurer without shopping around for quotes, however with premiums fluctuating from one company to the next you could find yourself paying a lot more than you need to.

Thanks to advances in technology it is also not possible to obtain quotes on life insurance plans via the internet.

There are a number of websites which allow you to enter your personal information and you will then be given quotes for one or more life insurance plans with various insurance companies.

For more information on your insurance or to obtain a quote please contact your insurance adviser.

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