Many of our earliest business and career efforts are driven by the needs of our nearest and dearest. This is because most of us are keen to reach a point in our lives when our loved ones are financially secure, and we want to reach this point as soon as possible. For some, it is only when this point is reached that it becomes possible to concentrate fully on building a business empire or reaching the top of a chosen profession, which makes attaining this early goal even more important. But how can we arrive at this point in our lives as quickly as possible? Let’s find out.
Ensuring Financial Security with Life Insurance
Achieving financial security for our loved ones could take years or even decades if we try to reach this goal solely through our efforts to scrimp and save in the early years. It’s simply too difficult for most business executives and entrepreneurs to save a large percentage of their income in the formative stages of their careers. So, what we’re looking for is a path to financial security that doesn’t take years to traverse, but it must also be:
- 100% Reliable – A financial security net needs to be 100% reliable or it has no practical value.
- Flexible – Our lives and the circumstances in which we find ourselves operating, change quite frequently, often with little to no warning. In such an unpredictable world, we need flexible financial solutions.
- Affordable – If you’re just starting out, you need an eminently affordable solution to your family’s financial security.
- Sufficient – The solution to your loved one’s financial well-being must be sufficient for their needs or it won’t do the job that you need it to do.
If you’re looking for a financial security solution that meets all the above requirements, life insurance is the obvious choice, especially if you live here in Australia (it’s also the best choice in many other nations across the globe). Finding the best policy can be tricky though, so don’t leave before reading our top tips on shopping for life insurance in Australia; you might be glad you did!
Top Tips on Buying Life Insurance in Australia
If you’re looking for your first life insurance policy in Australia, we recommend considering your needs before you look for a suitable policy. Having carefully considered what exactly you need your policy to do for you and your family, you can start to evaluate life insurance companies and the policies they offer, focusing on whether they meet your stated requirements. When performing this task, try to stay focused on the following points:
- Licensing – It’s illegal to conduct life insurance business in Australia unless you have a life insurance or friendly societies licence. Whenever you find a new insurer, the first thing you should check is that they have a current licence.
- Pricing – The best life insurance policy will be of little use if you struggle to pay the premiums. The insurers that make your shortlist should therefore all be competitive market participants. To determine which companies make the grade in terms of price, you should request quotations from each one. When doing so, make sure that you request the same coverage options and levels from each insurer so the quotes you receive can be used to make valid price comparisons.
- Coverage – Look at the maximum level of coverage each insurer offers and make sure it’s generous enough to meet your needs before placing them on the shortlist. It’s also a good idea to check whether coverage can easily be increased or decreased in the future to meet your changing requirements.
- Optional Add-Ons – Useful add-ons such as income protection insurance and critical illness cover can make all the difference when you’re hunting for the best value and the most suitable life insurance policy for your needs.
- Reputation – Spend a few minutes looking for reviews of each insurer you discover. Reputable firms with many years under their belt should have accumulated a decent percentage of positive reviews.
Make a note of the insurers that score highly in all of the above areas, and you will have a shortlist of top prospects to refer to when you’re ready to make a purchase.
