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Life Insurance

Comparing Life Insurance – A Checklist to Use for Every Quote You Get

22 Feb 2021

Life Insurance by Life Stage

The choices you make today can impact your long-term health, wealth and happiness. Understand the important role Life Insurance can play in key life events.

You probably won’t just accept the first Life Insurance quote without comparing what’s available on the market. Here’s a checklist that may help you consider what’s right for you.

If you’ve decided to get Life Insurance, congratulations! It’s a wise choice for you and your family’s future.

But like with most purchases, you may be wondering if there’s a way to keep your costs down without sacrificing quality.

A life insurance comparisoncan help. You can obtain a range of quotes and compare what’s on offer in the market.

Just like you wouldn’t buy the first house you come across, you may want to get quotes from several insurers and compare them.

If you only pay attention to that part of your Life Insurance, you may end up with something that doesn’t suit your needs at all.

Of course, costs are important. But lower premiums might also mean less cover and fewer benefits.

Here’s a checklist to help guide you through a Life Insurance comparison. It includes things that you should check off for the purpose of comparing quotes. And it’ll help you to think about what you might need.

How Much Insurance Do You Need?

You may feel under pressure when deciding how much insurance you need. There are plenty of options to choose from, to begin with. But you feel determined to protect your loved ones and you want to make the right decision. That’s why comparing your options is crucial.

You can get a rough number by requesting life insurance quotes online. But first, make sure that you analyse your needs and finances, and factors that may affect your premiums, such as your age and your health.

Who Are Your Dependents?

Who do you want to leave money to if you pass away? Even if you don’t want to have children or you don’t have them yet, it can be a spouse, another family member, or a friend.

You can have more than one beneficiary for a life insurance policy. You can update your beneficiaries whenever you see fit. These are the people who will receive the Life Insurance payout after your death (although the situation may differ a little if you take life insurance cover as part of your super fund).

Did you know that you could also name an organisation as a beneficiary? If you’d like to leave your death benefit money to a charity, most insurers will allow you to do that without a problem (although, again, the situation may be different with cover taken out under superannuation).

What Bills/Debts Will Your Family Need to Pay (And Does the Sum Insured you are Quoted for Cover Them)?

Think about what costs your family would need to cover if you die.

Do you have any debts, like car loans or a mortgage, that they would need to pay for? The answer to this question may indicate what type and amount of insurance you should consider.

Bear in mind that your family may need to pay your bills as well. These may include utilities, mobile plans, and taxes. There may also be medical bills that would fall on your family.

Your bank statement or online banking may help you work out these numbers. Don’t skip this step as ensuring you have enough life cover to allow for meeting these obligations can help  give your loved ones time to grieve without financial burdens.

What Questions Will You Ask the Provider?

Make a list of questions you’d like to ask a potential life insurer and don’t hesitate to put your questions on the table. Your insurer’s representative will be more than happy to help you by providing information about their products. At the same time, you’ll be more comfortable that you have important facts before you put your signature on the agreement.

Are You Entitled to Reductions?

If a Life Insurance company considers you low risk, you are likely to qualify for a more attractive premium.

What does that mean?

If you’re young, you’ll probably get better premium rates.

Are you a smoker? If not, your quote will probably be more favourable.

Do you practice extreme sports as your hobby? Do your eating habits affect your health? These may be some of the questions on the application.

Do you have a hazardous job? A construction worker who is a smoker probably won’t receive the same quote as a 25-year-old school teacher who doesn’t smoke.

What Are the Policy’s Exclusions?

Today, many people are calling their insurance providers to enquire about the effects of COVID-19. They want to know if they’re covered if they get coronavirus, they can’t work, and so on.

If you have an illness that your policy doesn’t cover, you may want to keep looking. Also, some life insurance companies may refuse to cover people with dangerous hobbies. If you’re one of them, check if your policy covers a potential accident related to your hobby.

That’s why it’s a good idea to check with your insurance provider what your policy covers and also to carefully read the information Product Disclosure Statement. Most policies have a number of exclusions and being aware of the extent of your cover may help you avoid unpleasant surprises in the future.

Have You Disclosed All Medical Conditions?

Getting Life Insurance is an important investment, so you need to be honest with your provider. They’ll probably ask questions about your lifestyle to learn more about the risk and liability that they’ll be taking on.

For example, if you have an illness, you’ll have to inform your Life Insurance company as part of the application process. The company may not always require a medical examination but checks will likely be made at claim time. If you’re not accurate and truthful during the application stage, it could result in the claim getting denied.

Striking the Balance

Does it seem clearer now?

Obtaining some information, doing some research and conducting a Life Insurance comparison may help you do it. Explore all the quotes and policies to select a suitable policy for your needs.

Take advantage of the internet and check out online quote calculators which you can use as a tool to help you think about how much cover you might need and / or how much the cover is likely to cost. Contact insurers and ask any questions you have, including  questions about exclusions and premiums. Make sure you’re covered even if something unexpected happens.

Today, it’s more important than ever to help protect your loved ones should something unexpected happen. Getting the right Life Insurance policy can create a degree of security for you and your family.


Do you need Life Insurance?

That is a question that only you can answer. You may choose to get some professional advice or to carefully consider your own needs and circumstances and deal directly with a Life Insurer like NobleOak who can provide you with general advice and product information.

Disclaimer: This is general information only and does not take into consideration your individual circumstances, objectives, financial situation, or needs.





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