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Life Insurance – Tips and Traps

July 13th, 2012 | Posted by Editor in Articles

Life Insurance, Income Protection, Trauma insurance and Total & Permanent Disability insurance (TPD) at some stage could play important role in our lives. If you already have or are in the process of getting some or all of these insurances, the following may be worth considering.

1. Price – Life insurance is generally priced on the products, features and terms of the insurance, the more they offer the more expensive they will be. In this case cheapest is not always the best especially if a claim occurs.

2. Insurance companies actually do pay claims, if they are legitimate and you meet the terms and conditions of the policy and you disclosed correct and accurate information when first taking out the cover.

3. Review your insurance regularly, as you progress through different stages of your life your need for insurance may change, events including marriage, child birth and purchasing of a property may trigger a need to change the level of cover you currently have.

4. Age – the younger you are the cheaper your insurance premiums will be, there is an opportunity to take level premium options which over a longer period of time could be more cost effective. Generally the condition of your health is also at its peak which may help avoiding any exclusions or loading to your policy

5. Beneficiaries – if you decide you would like the proceeds of your life insurance to be paid to a certain person or persons, you may wish to use a binding nomination for your beneficiaries and if possible seek professional advice in relation to your will.

6. Be honest when taking out insurance, if you smoke or have medical condition tell them so, and while your application is being assessed if anything changes keep them up to date.

7. Use and independent Insurance adviser, they will be able to give you specialist advice to suit your needs and circumstances, they will lodge, negotiate and administer your policy and will generally assist with claims handling.

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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