Why Your Home and Car Aren’t the Most Important Things to Insure
Money Bulldog started life as a website focussed on personal finance and practical advice for the UK market, but we’ve come to realise that a lot of the things we talk about here hold true overseas as well. With that in mind, here’s our resident Australian contributor Raj Padarath on the topic of life insurance quotes in the second of today’s posts for our readers in Australia.
Life insurance can be a daunting topic to think about, let alone investigate. Often when faced with a confronting topic such as insuring your own life, the temptation is to simply ignore, delay or make a joke and move on.
But there is undoubted merit in looking at life insurance. It gives you peace of mind. You wouldn’t drive your car without insurance, so does it really make sense to not cover your life? And that’s without even taking into account the benefit that comes from the peace of mind that flows through to your family. This is one of those things that can be done that is a truly altruistic act. What could be more selfless and important than taking a relatively simple step to ensure that in the event you couldn’t do it yourself, that your family could continue to get educated, travel to work and grow as you intended for them.
The next step is to become familiar with the topic to make sure you understand what you’re getting and to get the information you need to ask the right questions, and ultimately, make the right choices. Again, think back to how much time and research went into choosing your last car and relate it to how much effort should go into this far more important decision.
Luckily, there are companies out there that offer services that reduce the head-spinning array of options and quotes down to a manageable number with personal advice. There are several standouts, and GIO offers life insurance quotes that are competitive with the major players while still being large enough to give the trust and security you need.
The deregulation of the sector in the late 80’s led to a huge proliferation of financial instruments and service providers that offer insurance options, as well a range of associated services. However, many of these latest entrants to the market have larger marketing budgets than strong products, and it certainly pays to do research using a reputable, well-established provider. These are also the best places to get your first quote, as they will provide a realistic number, rather than an “only for our first 100 callers” special or an offer laden with asterisks that qualify the otherwise incredible (and too good to be true) price. Once again, GIO and other building societies and companies with a long trusted history are a good place to begin your research.
Often the structure of life insurance policy options is highly variable and can be tailored to your needs and circumstances. For example, if you have a regular wage, a weekly contribution to your premium that is deducted from your pay is usually the simplest arrangement. On the other hand, if much of your work is variable and unpredictable, and therefore changes week to week, a fixed contribution over a longer timeframe, such as fortnightly or monthly, could be the preferred option to smooth out any short term variances in cash flow.
Remember to take your time and compare your options and quotes, and as with any important decision, to weigh the quality of the offering against potential cost savings when making any final choices.
Life insurance is not an easy topic to approach. But once it’s done, the benefits far outweigh any negatives, and you and your family can get on with your lives, safe in the knowledge that you have done everything in your power to ensure the best future for them.