5 Tips for Choosing Life Insurance for the First Time

Life insurance can replace your income in the event of a major health catastrophe, injury, illness, or unexpected death. Your beneficiaries could use the money to cover expenses and pay off debt. Life insurance can give you peace of mind. 

Also read: Things To Look For When Buying Life Insurance

Here are 5 tips for choosing life insurance for the first time: 

1. What Does Life Insurance Cover? 

  • Check what the life insurance policy covers. Unfortunately, some policies cover accidental death only. Others do not cover death from diseases. 
  • In addition, life insurance policies do not just cover death. They can provide other benefits, including income protection and Total and Permanent Disablement. 
  • It is, therefore, essential to check what the policy covers before choosing. 

2. What Life Insurance DOES NOT Cover? 

Some life insurance policies do not cover suicide for the first 13 months. In some cases, it may not cover accidental death, including drowning, poisoning, motor vehicle accident, accidental drug overdose, etc. So, check what the policy covers before choosing. 

3. What Is the Cost of the Premiums of Life Insurance? 

  • The cost of the premiums will depend on your age, the length of your cover, the insurance company you choose, the type of your life insurance policy and the extent of your insurance cover. 
  • If your needs change in the future, they can affect the cost of your premiums. 
  • It is, therefore, more important to compare the premium costs of multiple insurance companies to find affordable ones. You can get quotes from multiple insurance companies. 

Related: Is Life Insurance Worth The Cost?

4. Can You Increase Your Life Insurance Cover Without a New Health Check If Your Situation Changes? 

Yes, you can increase your cover without a new health check if your situation changes, especially if your insurer assessed your health in the last five years. 

5. Can You Switch to a New Life Insurance Policy? 

  • Yes, you can switch to a new policy. If you decide to switch to a new policy, you may need to cancel your current insurance policy. 
  • You will have to write to your insurance company and provide the amount of notice needed. If you cancel your policy during the cooling-off period, you can get some or all of the premiums you have paid. 
  • Therefore, once your new insurance company accepts your new policy, you can cancel your old insurance policy. If you switch to a new insurance company, you will have to pay the upfront fees. 

Life insurance can protect you and your beneficiaries. It is, therefore, essential to read all the important documents and talk to an expert before choosing your policy. If you are researching life insurance and intend on taking one in Perth, Western Australia, you can contact Absolute Insurance today.

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Greg Maguire

Greg Maguire

Greg is an experienced Insurance Broker in Perth, WA, with an Advanced Diploma of Financial Planning from Deakin University and a Bachelors Degree from Edith Cowan University. He is a member of the Chamber of Commerce & Industry WA and Baldivis Rotary, as well as Vice President of the local high school's Parents & Citizens Association. Greg provides personalised and dedicated services to his clients that bigger firms are unable to match.