Should I consider bundling my insurance products?
Combining products and services is not a new idea anymore as you can see bundling in different industries, like broadband or credit cards. When it comes to life insurance it can help simplify your premiums while it ensures that you have the necessary cover you need. Some of the key benefits are as follows:
- Less Maintenance: Give careful thought how you manage your life insurance coverage. Let’s say you have life insurance with one provider, health insurance with another, and so on, keeping track of your premiums would take a lot of effort on your part. You are also forced to maintain relationships with each. But having them under one cover and one underwriting saves you time and effort.
- Less complicated and confusing: Let’s say you have two different kinds of insurance underwritten by two different insurance companies. Placing a claim would require you to place a number of phone calls or schedule some meetings with two different insurers. However, if it is held by only one insurance company, any matter can be resolved with a single call.
- Huge Discounts: If there is something very appealing when you package different insurance products, it is the huge discounts you can get. Life insurance providers usually reduce their rates when you allow them to underwrite multiple coverages. You might enjoy lower premiums when you consolidate life, health, or business insurance coverage.
- Flexi-link: A recently introduced feature called flexi-link allows policies held inside of super to be combined with policies outside of super and vice versa, which provides greater flexibility for policy holders and can result in savings of up to 15-20% on premiums and policy fees.
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Packaging Options Available for Insurance Products
How you consolidate or package different insurance products would depend on different factors which include your needs, finances, and the risks you face. You can package two or more insurance products as your needs dictate. Some of the most popular combinations are:
Life Insurance and Income Protection
Having life insurance and income protection covers you for death, and at the same time, provides you a stream of income when you become disabled due to injury or sickness. Life insurance pays your family a lump sum in the event of your death. The money can also be used to pay off additional medical and funeral expenses. It can also be used to pay off any financial obligations that have been incurred by the insured. Furthermore, it can also be used in planning your estate. Life insurance can help your family financially as they adjust to the new lifestyle. It also balances the emotional stress they feel because of the loss by not having to worry about the day-to-day expenses. Income protection, on the other hand, pays you up to 75% of your gross monthly income when you become unable to work due to disability or illness. It will provide you with a steady stream of income to help pay for medical and rehabilitation costs. Income protection also helps you pay daily expenses, such as food and bills. You can also use it to repay your debts or any mortgage payments. By taking care of these daily and common expenses, you are eased out of financial and emotional stress.
Life + Income Protection + Total and Permanent Disablement Insurance
In addition to the life and income protection insurance benefits it can give you, adding Total and Permanent Disablement to your package can give you additional cover for sickness or injury that will deter you from ever working again. Total and Permanent Disablement Insurance pays you a lump sum in the event that you are unable to work or perform your duty related to your training, experience, and education. It also helps you pay expenses brought about by the disability, such as rehabilitation and nursing care costs. It can also give your income a boost when your spouse has to cut his or her working time to take care of you. It will enable you to maintain some semblance to your lifestyle before the injury or illness. Just think about the emotional and financial stress your disability could incur if you are unprepared for such things.
Life + Income Protection + Trauma Insurance
According to Heart Foundation statistics, there has been an increasing amount of Australians dying of heart disease, with one Australian dying of cardiovascular disease every 12 minutes. What would happen if you are suddenly diagnosed with a terminal illness or to suffer a stroke? Would your family be able to cope financially? Trauma or Critical Illness insurance pays a lump sum benefit if you are diagnosed with any critical illness included in the policy. This lump sum benefit could help you pay for medical expenses that you cannot otherwise afford. In addition, it helps you pay for medical equipment or rehabilitation costs you need while recovering from disability.
Life + Income Protection + TPD + Trauma Insurance
There is likely to be no other cover you can get that will be as comprehensive as this. It covers you and your family thoroughly from any unfortunate events.