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Life Insurance

These are some of the big mistakes that could stop you from finding the right Life Insurance in Australia

28 Jan 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.

This is what you want to avoid when looking for the right Life Insurance available ​to you and your loved ones.

With so many policies and offers available, you may find the task of searching for the most suitable Life Insurance a bit daunting. Do you already feel overwhelmed with all the terms and conditions?

It’s difficult enough to think about mortality and the possibility of leaving your loved ones behind. All the numbers that you stumble upon may make you feel uneasy. Not to mention the hard conversation you need to have with your loved ones. It’s a good idea for them to know about the policy, especially the validly nominated beneficiary or beneficiaries.

That’s a demanding emotional hurdle you may need to overcome. But once you’re past it, there’s another one – finding the most suitable Life Insurance policy.

It may need to suit your current income, and it should also have a sum insured which is sufficient to cover all the potential costs that your family may face after your death. These include unpaid bills, debts, and more.

To really get going, it may help if you can avoid these common mistakes. They can prevent you from finding the best Life Insurance for you. Australia has many Life Insurance providers that may also be willing to help you avoid these mistakes, but only if you know what they are.

1. Skimming Over the Policy Documents

You probably know that you should always read the fine print. It may contain terms and conditions that you disagree with.

Two possible scenarios may happen if you don’t go through the documents carefully.

You may miss something that you’d have considered a deal-breaker and end up with inadequate Life Insurance. Pay special attention to the exclusions.

Similarly, you may skip over a good offer because you neglected to read the documents with care.

2. Not Recognising That a Life Insurance Policy Doesn’t Only Have to Cover Death

Many people only focus on what will happen to their family after they die. But what happens to your children if you get sick or injured and can’t work anymore?

One may want to consider products that don’t only provide some financial protection for your family in the event of your death but also other events such as illness and accidents which may prevent you from being able to work for an income, for example.

3. Deciding to “Do It When I’m Older”

Did you know that there are several factors that insurance providers consider when calculating the premiums? Age, gender, and lifestyle are only some of them.

But let’s focus on age for now.

The younger you are, the healthier you’re likely to be. This is a significant implication for Life Insurance companies. They’re likely to offer more favourable premiums if they are less likely to need to pay out any time soon.

If you want to consider the best Life Insurance options for you​, you may want to do it at an early age.

Focusing on Price Instead of True Policy Value

Understandably, people are looking for something they can afford. Someone with an average monthly income and three kids may not be able to afford Life Insurance right away.

Focusing on the real ‘value’ of a Life Insurance policy is often more important than its price. You may qualify for better premium rates according to your health, gender, age, and more so make sure you ask your insurer.

4. Having No Plan for How the Insurance Will Get Used

You don’t get Life Insurance just to have it. People who want to take out life insurance typically have a plan for how they’ll use this insurance. Do you want to help make sure your children don’t have to deal with student loans if you pass away? Is your illness making you think years in advance? Either way, it’s essential to have a plan.

If you don’t have one, you’re more likely to end up with inadequate cover and perhaps be under-insured. When you’re clear on what you expect from your Life Insurance and take the time to consider your options carefully, you decrease the chances of being inadequately insured in the future.

5. Not Updating the Beneficiary List

Unpredictable events, such as a divorce or spouse’s death, can affect your list of beneficiaries for your life insurance cover. People have a way of forgetting to update their beneficiaries in such cases, which can cause issues related to the payout. There are also joyful events that may well call for changes in your Life Insurance, such as the arrival of a new baby.

Having bought a Life Insurance policy, your job isn’t over yet in most cases. You still have to review it from time to time to help make sure it continues to meet your needs as life evolves.

6. Choosing the First Insurer You Find

It may be easier to go for the first provider you find, but you may deprive yourself of the chance to find something more suitable.

Take your time to explore your options. You should send emails and make phone calls, get a good number of quotes, consider the products carefully, and before you make your final decision.

You want you and your family to have the best Life Insurance Australia has to offer. After you’ve compared rates, cover terms and benefits, you’re more likely to get what you’re looking for.

7. Not Telling the Truth on Your Application

Insurance providers may not find out when someone’s not telling the truth. But you can bet that they will do everything to find out when it’s time to pay up.

But perhaps the most severe consequences may be something your family will bear. Be sure to be honest, complete and accurate in your application, think about how it might affect your beneficiaries in the future. Your claim may be denied and they may not be able to get the money when they need it. They may not get anything at all.


Avoid These Mistake and Get the Most Out of Your Life Insurance

If you’re looking for the best Life Insurance and Income Protection, Australia undoubtedly has an excellent line-up of products.

That’s why it’s crucial to compare your options. Most of all:

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.

Please do not use this information as a substitute for getting a proper quote and deeper assessment of your choices.




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