Things you need to know about life insurance

 
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What is life insurance? How and when can it help your family? What extra cover options are available? Read on to find out.

Life insurance provides for a lump sum payment to your family if you pass away or are diagnosed with a terminal illness. Life insurance makes it possible for you to look after your family financially in tragic circumstances.

The lump sum payment – which is up to $1.5 million depending on the policy and your age for policies Choosi can arrange direct - can be used to maintain the lifestyle your family is used to. Your family can use it to pay off the mortgage, other debts or help with the day-to-day costs of life.

It doesn’t matter whether you are young, middle-aged or heading to retirement, or if you have kids or not: life insurance can have a role to play in your particular circumstances.


The right cover

Choosing life insurance is about determining the level of cover you need and selecting an affordable policy that is right for you.

Your financial commitments can help you to determine the amount of cover your family needs. Consider factoring in debts like the mortgage, car loans, personal loans and credit card balances, as well as ongoing expenses like property maintenance, council rates, and utilities. It all adds up. 

If you wish to obtain information that is more particular to your circumstances, consider using a life insurance calculator from a trusted source such as MoneySmart1, or you could consider obtaining independent financial advice.

Some policies also allow you to take out a joint policy, insuring both yourself and partner.


Optional extras

Many policies offer optional extras which can be added for an additional premium. These may cover you for additional events which are not included in standard policies.

These optional extras available direct through Choosi may include:

  • Total and Permanent Disability Insurance – a benefit paid when an insured person suffers a total and permanent disability which leaves them permanently unable to work (up to $1 million depending on your age and life cover amount^);
  • Serious Illness Insurance – a lump sum benefit paid in the event of a covered defined serious illness (up to $500,000 depending on life cover amount); and
  • Children’s Insurance – a lump sum benefit paid when an insured child passes away or is diagnosed with a terminal illness* or suffers a specified and defined serious injury or illness (up to $50,000 per child aged between 2 and 17 years).

Compare, choose and apply

Life insurance can provide the financial support your family needs if you were no longer there to provide for them. Additional cover can protect against specific events including total and permanent disability and serious illness.

If you are considering getting life insurance, now is the time to find out more. Choosi can help you to compare so that you can choose and apply for life insurance. It’s simple: talk to Choosi’s team of Chooser’s on 1300 363 526 or request a quote online today.


^ Payment of any Total & Permanent Disability or Serious Illness benefit (if applicable) will reduce the available death benefit.

* For most of the policies available direct through Choosi (depending on the policy) diagnosis of a terminal illness means where life expectancy is 12 months or less and cover is excluded for death or terminal illness as a result of a self-inflicted injury in the first 13 months.

This is general information only and does not take into account your personal objectives, financial situation or needs. You should consider the relevant PDS available on this website prior to purchasing any product. Choosi offers insurance products from a range of brands but does not compare all products available in the market.

References  

1. https://moneysmart.gov.au/how-life-insurance-works/life-insurance-calculator


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