Live in Melbourne but don’t have life insurance? Here’s what you need to know before you buy.
With a cost of living index of 85.69 according to Numbeo, Melbourne is expensive even when compared to a number of major cities across the world, ranking 62 out of 538. Given its status as the second-most populous city in all of Australia and Oceania, this is not a surprise.
If you live in Melbourne or need life insurance in Victoria, this is what you need to know:
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Why is life insurance in Melbourne so important?
If you live in Melbourne, we don’t have to tell you the costs are high. According to Expatistan.com, monthly rent for a 85 square-metre furnished accommodation in a “normal” area in Melbourne will run about AU$1,956 per month. This kind of money adds up, especially if you’re no longer around to provide the income that makes a Melbourne lifestyle possible.
If you’re not there to provide your loved ones with income, they may have to move somewhere else. But there is a way to ensure that your family is taken care of, even if the unthinkable happens: securing the proper coverage.
What is life insurance stamp duty?
Stamp duty is a tax levied on specific types of arrangements such as life insurance. Generally, in Victoria you’ll see a 10% duty charge slapped on most types of insurance. The good news is this no longer applies to life insurance in Victoria.
According to the State Revenue Office Victoria, life insurance duty has been abolished since 2014, which means there is a built-in advantage to acquiring low-cost life coverage at the right price.
This doesn’t excuse you from researching other types of insurance and understanding how the duties may apply on those. But for life coverage, you’ll find there’s additional incentive to get covered thanks to the 2014 abolishment.
How does stamp duty in Melbourne, Victoria compare to the rest of Australia?
Do I need to go to an office to buy life insurance?
Buying life insurance can be much easier than you imagine. You can secure life insurance quotes for yourself in just a few clicks, entering basic information like whether you smoke, your occupation and your date of birth. You’ll then be taken to various insurance providers that can offer you quotes and tell you about the next steps.
The key is taking action. If something should happen to you, you don’t want to leave your family alone to deal with the stress of coping with a high cost of living. Check out your life insurance options by speaking to an adviser.