Life Insurance Blog

Affordable Life Insurance

February 24th, 2012 | Posted by Editor in Articles

Affordable Life Insurance and finding the appropriate cover to meet ones needs and budget are why people do not consider purchasing life insurance until it is too late.

The cost of life insurance will generally vary from insurer to insurer and depending on the following factors including your occupation, age, medical history and the amount of cover you require.

Your occupation will have an impact on the cost of your insurance particularly Income protection and Total Permanent Disability insurance, white collar workers are deemed to be less risk of an accident than blue collar workers and therefore premiums are generally lower.

Your age will have an impact on your premiums, the younger ages are generally cheaper and premiums will increase as your age does. There are ways to reduce this increase by selecting “level premiums” from the commencement of your policy. This options means the premium does not increase due to age but is generally at a higher amount from the outset.

Medical History
Your medical history may have an impact on your premiums, with the healthier lives treated more favorably, substandard medical history may trigger a loading to your premium or an exclusion to your policy.

Amount of cover
The amount of cover you require has one of the largest impacts on the cost of your insurance with higher amounts triggering higher premiums.

Affordable Life Insurance some options to consider
• Take advantage of tax effective insurance inside superannuation and use your super contributions or existing super balance to pay your premiums, you may also receive the benefit or group discounts as you may be part of a larger pool.
• For the younger ages level premium options may be a way to reduce the impact of the cost of insurance has the insured becomes older.
• Improve your health as insurers are more favourable on healthy lives, this may include giving up smoke or reducing your weight to a healthy range.
• Consider a rider policy rather than a whole new policy, this is when you attach a policy such as Trauma to your Life insurance, premiums are generally cheaper this way.
• Bundle your insurance policies together with the same company as they will generally give you a discount for more than one policy.
• Pay your premiums annually rather than monthly as there is generally a loading on monthly premium options.

The above options are may be worth considering when looking to purchase affordable life insurance.

This material is not intended to constitute personal advice, and must not be relied on as such. This information has been prepared without taking into account your objectives, financial circumstances or needs. Before making a decision based on this material, you should consider the appropriateness of this material having regard to your own objectives financial circumstances and needs. You should consider obtaining independent advice before making any decision.

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