How Can Life Insurance Reviews Help You Find the Right Cover?
Life insurance — for most of us, those two words don't inspire feelings of interest or excitement. In fact, thinking about what would happen to your family if you were to meet with an unexpected tragedy is something most of us don’t even want to think about. However, taking out life insurance is something all of us should consider.
How would your family manage financially if you were to die unexpectedly? First with the funeral costs and then with the void left by the lack of your income? How would your family be able to cope with the mortgage, credit card debt, school fees and other ongoing expenses?
When you consider these questions it quickly becomes apparent why life insurance is such a necessity. Life insurance offers a financial safety net for your family if the worst were to happen, ensuring they can look after all their financial obligations if you were no longer around. Having this type of cover in place gives you and your family the peace of mind you need to simply live life to the full. Then, if tragedy does strike, your family can focus on grieving and not have to worry about their financial situation.
Benefits of Reading a Life Insurance Review
Life insurance is important, which is why choosing the right policy is crucial. While it can be tempting to simply sign up for a policy that offers you the cheapest quote, this is a mistake and could lead to you having an inadequate level of cover in place. Do plenty of research and shop around to compare a range of policies, all of which you can do yourself online. The Internet offers a wealth of information when it comes to life insurance — you can visit sites and product pages from different insurance providers in order to work out the cover you need. Find out more about companies and policies at finder.com.au. Read life insurance reviews online to get an in-depth understanding of the strengths and weaknesses of each policy.
Policy options available
Reading online reviews is the best way to get an idea of the policy options available from different insurance providers and what they do and don't cover. While you might think a certain policy from one insurance provider sounds adequate, doing some basic research could help you track down a policy that offers a much better level of cover for your requirements.
You'll also be able to find out what benefits and features competing policies offer. Does one policy offer a higher benefit payout than another? Are there additional cover options that you can add or subtract to tailor a policy to your needs? You can then get an understanding of the terms and conditions that apply to a policy, such as the benefit limits and any unexpected exclusions that may apply.
Claims handling process
Another important thing you can learn from online life insurance reviews is each company's claims handling process. Some things to look for include:
- how easy it is to file a claim
- how to track your claim's progress
- the typical time for a claim to be processed
- what processes are in place if your claim is not resolved to your satisfaction.
Previous customer experience
Finally, perhaps the greatest benefit of online life insurance reviews is that you get to hear about the experiences real people have had with different insurers. Rather than the exaggerated descriptions taken from glossy marketing materials, these are real world situations and experiences that people have dealt with. This can be a great help as you form an idea of which insurance provider best matches your needs.Back to top
What to Be Careful of When Reading a Life Insurance Review
Online life insurance reviews can be a hugely beneficial resource when it comes time to research your cover options. However, it's important that you don't base the very important decision of which policy you choose on one single review. There are a number of very good reasons for this, including:
- Unhappy customers. Use these reviews to assess how effective and efficient a company's claims handling process is, as well as how friendly and professional its customer service team is. Besides, it also pays to remember that some people are serial whingers who complain about the slightest of inconveniences and may not have been aware of the policy exclusions, so take these reviews with a grain of salt.
- Few people post positive reviews. The simple fact is that people are much more likely to post a scathing review after having a poor experience than they are to post a positive review after having a wonderful experience with a life insurance company. Keep this in mind when reading reviews.
- Reviews on the website of insurance providers. Reviews on a company's website are obviously only going to be completely positive, but they can be a useful source of information in terms of information about policy features and the claims handling processes.
- Compare sites. Before you take the word of one review site as gospel, weigh up its opinions against those given on other sites. If you’re looking at a website that gives ratings to insurance providers, remember that this is just the opinion of one organisation or industry body — others might have differing opinions that could be better or worse than the one in front of you.
- Who wrote the review? If you come across a review that claims to be written by some sort of expert, make sure to look into their qualifications, experience and overall right to pass themselves off as an authority on the subject in question. Look for reviewers with in-depth knowledge of the life insurance industry and the products available.
- Look out for fake reviews. Though these sorts of things aren’t as common as they might be on some travel or restaurant review websites, be wary of fake reviews of life insurance products. If something sounds ridiculously over the top and too good to be true, there’s a chance it could be. Verify the source of the review before passing judgement.
Policy Features to Consider When Reading Life Insurance Reviews
- Benefits and features. Compare the benefits and features offered by different policies and see how they stack up. Does one offer more benefits or a higher level of cover than another? Check out the minimum and maximum sum insured to get an idea of whether or not certain policies will offer you enough protection.
- Optional benefits. Some policies will allow you to add special optional cover to help you tailor a policy to your specific needs. This could include cover for your children, total and permanent disablement cover, and critical illness cover.
- Cover for more than just you. Can you take advantage of a discount by taking out joint cover for you and a spouse? Also look at whether policies can be tailored to offer cover for your whole family.
- Entry age. What are the minimum and maximum entry age limits for each policy? Most companies will offer cover up to an age limit of between 65 and 75 years.
- Premium structure. Will you be paying stepped or level premiums, or a combination of the two? It's also a good idea to look at whether a company offers flexible premium payment options - for example fortnightly, monthly, six-monthly or annually — to let you tailor a payment schedule to suit your budget.
- Cooling-off period. This is the time when you can cancel your policy before it is actually put in force. Most such periods range from 28 to 32 days.
- Exclusions. No matter what type of cover you're buying, make sure you familiarise yourself with the circumstances under which claims won't be paid. Doing so now will ensure you don't get a nasty surprise when you try to make a claim.
- When the policy will end. This can vary from one policy to the next. For example, a policy may end after a benefit is paid, when the policy owner dies, when the policy expires or if you fail to pay your premiums.
- Bundle and save. Some insurers will let you save money on premiums if you take out multiple insurance policies with them. If you need more than one type of cover, look for providers that offer this feature.
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Life insurance is one of the most important financial products that you can buy. Doing your homework is the best way to make sure you are getting a good deal. By looking at life insurance reviews online you can compare and contrast policy options, and get the right cover for you.