1. You can get life insurance with a pre-existing medical conditionIn Australia, having a pre-existing medical condition doesn’t automatically exclude you from getting cover. It’s important to first understand the potential barriers to help get the cover to suit your circumstances.
2. The premium structure affects how premiums may rise in the futureLife insurance premiums are based on a number of factors of your premium type, including age, gender, occupation and smoking status. The structure of your policy, be it a stepped or level premium, can impact how much they rise and how often.
3. Superannuation alone may not provide adequate coverIt’s widely seen that superannuation provides suitable life insurance cover. This may not always be the case, with over half of Industry Super Fund members under insured by $100,000 . It’s worth taking a closer look at how much your super will actually provide in the event of a payout.
4. The value of underwritingUnderwriting is the process used to assess a person’s risk, and provide the premium a person pays to cover that risk. The more information you provide us, the more tailored your cover will be to your own needs.
5. Renewal of most life insurance is guaranteedOnce you have taken a life insurance policy, there’s no obligation to notify your insurer of a change in your health or lifestyle. Given you pay your premiums on time your policy will be renewed each year, up to the maximum age renewal on your policy. This means getting covered when you’re young can be a cost effective way to stay covered in the future.
6.Redundancy cover can't be offered by life insurersWhile life insurance policies can’t provide payouts when you lose your job, there are other forms of insurance that can.
7. Life insurance advice must legally be in your best interest
With so many policy options in the market, and lots of information available, getting the right advice is extremely important. The good news is, the new Future of Financial Advice (FOFA) legislation means financial advisers are legally bound to provide advice in the best interest of the individual, not the business, institution or adviser themselves.
Please note that the information provided in this article is not advice but general information only.
*Source: Australian Institute of Superannuation Trustees (AIST) and Industry Funds Forum (IFF) - See more at Lifewise.