This is a generic list of questions that may pop up in your head now when you are into the thought of discovering more facts on life insurance. This article will certainly help, but we welcome more questions if you have. We will be happy to cater your needs. Read on to educate yourself the recent facts on life insurance.
Does one needs to be an Australian to apply?
Normally just persons with Australian permanent residency standing or who are in the process of applying for stable residency is considered for insurance.
New immigrants to Australia may need a time phase for recognized occupation and income, before income protection or TPD cover is given.
What if one tours overseas?
Once your cover is in place you will be covered 24 x 7 and anywhere worldwide. Some insurers may want that you come back to Australia within a precise period after making a claim so that to carry on to get payments.
What medical evidences may be compulsory?
For those under the age of 45 there are no medicals essential by the insurer if the amount of your life insurance cover is below than $2.5M or your income protection monthly benefit is within $6,500. For the above age groups medicals might be needed at even lower levels of cover – feel free to contact us to trace if there are any standard medical requirements for the cover you need. Of course if you tell a medical condition in your application the insurer may look for more information about this by seeking a report from your doctor.
What financial evidences may be asked for?
On the basis of the amount insured, job and whether you are in employment or self employed it may be requisite to complete a financial questionnaire, it may even need to provide copies of tax returns plus business accounts.
What are the available payment choices?
Most insurers propose monthly, half yearly and annual payment options.
What methods of payment are there?
- A cheque made out to the company
- A credit card deduction authority
- A direct debit request
What are level & stepped premiums?
- Stepped premiums are calculated at every policy anniversary date at your present age. Stepped premiums add up every year, with the rate of increase becoming greater the older you turn out to be.
- Level premiums, on the other hand are constant at a flat sum and will only be different if the insurer brings a change to the level of rates.
Things to consider when choosing between stepped and level premiums:
How long will you upkeep your policy?
If you are going to keep your policy not more than five years you will be good off paying stepped premiums. However, level premiums can offer savings if you hold your policy for long terms.
What mold of cash flows is ideal for you?
You may wish to give the lower stepped premium because cash flow is tight and you wait to have a higher income to fulfill the stepped premium that elevates in future. If this cash flow is at ease now, you may prefer to pay the higher level premium now so that prospect payments are not a load. One of the common causes for people discontinuing their stepped premium policies is the mounting premium as they get older. Level premiums can help out to keep the cost of insurance affordable and permit the cover to be continued at least until age 65.
How can I buy insurance through superannuation?
If you are by now contributing to a super fund you can inquire whether they present insurance products and whether the insurance premiums can be deducted from contributions to the fund. A few of the super funds have limits on the sums you insure or will have controlled benefit periods.
When you have a Self Managed Super Fund (SMSF) you can buy your policy using the contributions it receives or investment funds.