Copyright (c) 2014 Kerrie Peacock
In 2013, more than $ 4.4 billion was paid out by Australian insurance providers for 70,895 life cover claims (based on statistics by The Risk Store). However, receiving your insurance benefit won't really be worth it if you paid excessive amounts of insurance premiums. Hence, you must know what to do to get cheap life insurance.
I Choose The Right Amount Of Cover And The Most Suitable Policy
A 2013 survey by TAL sampling about 1,200 Australians revealed that only 8% were highly confident that they had adequate insurance. The only way to improve such a situation is by making sure that your pursuit for cheap life insurance cover doesn't cause you to settle for less than adequate insurance cover.
In the long run, having adequate insurance within the most appropriate policy will avoid the need to change insurance plans in future. Such a future change would be even more costly, since you'll be applying for a second cover at an advanced age.
II Opting for Separate Insurance Cover Instead Of A Joint Life Insurance Policy
When choosing between a joint policy and separate insurance covers, you must first consider the long-term costs, rather then short term gains. A couple can either have separate life covers or settle for a less costly joint policy. Unfortunately, the joint policy will end up being costly in the long run. This is because a joint policy will end in case one partner dies, which means that the remaining partner must then seek a second insurance cover.
III Shop Around
The availability of 13 Australian insurance companies specializing in life cover means that you have many options from which to choose the most appropriate life cover. However, don't just concentrate on the pricing, but also check on the value you expect to derive from such insurance policies. Rankings by various research firms, such as Canstar (a specialist research service) will also help you in finding the best fit. For instance, Canstar ranked AIA Australia and TAL as the top providers offering outstanding value in term life products in 2013, whereas Clearview and OnePath were the top providers in packaged life insurance products (based on a combination of premiums, benefits and options).
IV Take Up A Healthy Lifestyle
By observing a healthy lifestyle, you would be less likely to contract various ailments, hence your insurance premiums will be less costly. In fact, just by taking up a healthy lifestyle, you could receive discounts on your already existing premiums. Recently, an insurance provider started a program to reward the healthy lifestyle of policy holders. Policy holders can earn points through the program called Vitality (launched by AIA) simply by eating healthy, exercising and doing health checks/ assessments. In return, life insurance policy holders can receive discounts on their premiums, as well as other benefits including discounts on certain flights, fitness memberships and gift cards.
V Buy Life Insurance Early
Older people generally pay higher premiums for life insurance. This is because the older you become, the more at risk you are to fall ill and even die. For instance, the Australian Institute of Health and Welfare reports that 1 in 4 Australian women and 1 in 3 men will have malignant cancer by 75 years. Therefore, if you buy life insurance early, while you're young and healthy, you'll have less costly insurance premiums.
Kerrie Peacock constantly checks on current trends within the personal insurance industry and shows you what to do to get cheap life insurance. For more information and tips about life insurance, visit http://www.mecovered.com.au/what-to-do-to-get-cheap-life-insurance.
Orignal From: What To Do To Get Cheap Life Insurance
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