Learn the benefits of getting a quote for life cover online.
Life Insurance can provide critical cover for your and your family should anything happen to you or your financial dependents. Various life insurance plans are designed to provide cover for specific events, such as death, temporary or permanent disability as a result of illness or injury.
Unfortunately, the vast majority of Australia’s population remains significantly underinsured. Many consider life insurance to be expensive, too confusing or redundant, as if there is simply no need for it. However, it is important to put yourself in the shoes of your loved ones – will they be able to shoulder the financial burden if you were to pass away or become permanently disabled, and you are no longer able to contribute to the household?
Compare life insurance quotes from these direct brands
What are the advantages of buying life insurance online?
In the past, buying life insurance might seem to be quite complicated. You would either have to visit your bank, the insurance provider, or a financial planner yourself to help you find a policy, with fewer options to choose from.
These days, you can go online to compare quotes on a wide variety of life insurance plans. This means, you are less restricted in the range of policies that you may want consider and have greater opportunity to find competitively priced policies that are tailored towards your needs. Some of the benefits of getting life insurance quotes online include:
- Greater flexibility to work with an insurance adviser or buy direct: If you require tailored product advice from an insurance consultant, you can still direct your inquiry to an adviser after comparing different options online. Applicants can have the best of both worlds by reading up about the different types of cover and products on offer before contacting an insurance consultant to commence their inquiry and compare prices. In addition, insurance consultants can provide tailored recommendations on different life insurance policies that are suitable to your personal circumstances. Alternatively, you can also complete your life insurance purchase online through a direct provider and get cover in place immediately. Direct insurance is a smart option for people who know what they want and are unlikely to have to undergo medical underwriting to get cover in place.
- More life insurance cover options and offers available online: As mentioned previously, buying life insurance online gives customers greater selection from a range of different product options. This means, you have the ability to compare various life insurance policies with their own set of benefits and options, and determine which features you actually need, so you can keep your premiums affordable. When in doubt, you can always ask for assistance from an insurance adviser to help you understand complex product features.
- No obligation and free-of-charge advice: While the services of a private financial planner may incur a fee for finding a suitable life insurance policy, when comparing policy options and speaking with an insurance consultant, there is absolutely no obligation to sign up for a policy right away.
- Access to online reviews: Online buyers can read through product reviews that give an unbiased overview of the products key benefits and features. Online reviews also give you the chance to assess the actual insurance company by reading about the company history, financial strength and awards received.
- Online life insurance application is simple and straightforward: When you purchase a life insurance policy through a direct life insurer, you can have your cover put in place entirely over the phone or online. An insurance representative will usually require you to provide some additional information and answer a series of questions. Your life insurance cover can be put in place immediately if no additional medical or occupation underwriting is needed. On the other hand, while the application process through an insurance adviser may take a bit longer for the application to be approved, you will continue to receive assistance throughout the entire process.
- Safe and secure application:Your personal details and inquiry are securely transferred to either the direct insurance provider or the team of financial advisers to confirm the applicants quote details. In general, details such as your name, age, gender and smoking status are required to produce a preliminary quote. Phone number and email address are necessary so that the life insurance adviser is able to contact you to discuss your options.
Why you may want to consider receiving online insurance quotes in Australia
With more and more of our day-to-day transactions moving online, finding protective cover online really is no longer restricted to the once “tech-savvy”. Whether you are a senior buyer looking for funeral insurance to cover final expenses or a young, single male with no dependents looking for income cover to protect yourself against injury at a weekend footy match, there is no limit to who can benefit from taking out cover online.
What are the benefits direct life insurance?
Buying direct life insurance online is usually more suitable for people who know what they want out of their insurance and are keen to get cover in place fast. They are predominantly low-risk buyers who do not want to avoid medical underwriting and get their cover activated either online or over the phone. These buyers do not feel they require the services of an insurance consultant to explain to them the different product options and features that are on offer.
Benefits of life insurance online quotes for high-risk applicants
It’s a sad truth that many applicants that carry higher risk to others due to their occupation, health or lifestyle will be put off purchasing cover after being rejected by one insurer. Buying life insurance cover online through a consultant enables people to find insurers more willing to offer cover for their situation. An insurance consultant will know what providers are more likely to provide cover for people that carry certain risks.
Underwriting criteria can vary greatly between insurers which is why comparing multiple options will give greater chances of getting cover in place. In addition, purchasing cover online gives greater access to different types of insurance cover, with some products not requiring the same level of medical or occupation underwriting.
- Funeral insurance
- Accidental death cover
- Accidental income cover
Why couples should consider getting life insurance quotes online
If you are in a long-term relationship, you may want to consider the benefits of applying for a joint life insurance policy. No matter what role you and your partner/spouse play in the household, it is important to have sufficient cover in place should anything happen to you and/or your spouse, especially if you have young children and significant financial commitments to meet.
If you apply for life insurance online as a couple, you may be eligible for a discount on your premiums. You can also benefit from additional children’s cover on your joint life insurance policy, which may be available for free or at an extra cost. Your insurance adviser can assist you in finding life insurance policies that offer children’s insurance for free when you apply for a joint life insurance policy.
Busting the common myths on getting life insurance online
Different people come up with different reasons why they are less inclined to get cover. Some feel it is simply too expensive while others take a "surely it won't happen to me" approach.
What if it did happen to you? Statistics have shown that three out of four people will suffer from a debilitating illness in their working life before they even reach 65 (ABS), with one in two men and one out of three women under the age of 65 will be diagnosed with cancer in their lifetime (Cancer Council, 2012).
Some of the common reasons that may hold back many Australians getting life insurance online:
- It is too expensive: One of the most common reasons why people are hesitant in obtaining insurance is due to the perception that insurance premiums are too costly and outside of their household budget.
- It is too complicated: It is understandable for insurance jargon and complex product features to be confusing to first time buyers. This rings true with almost anything you are not familiar with. Therefore, it is essential to do your research if you are considering buying a life insurance policy. You can always seek advice from insurance experts, should you require more information and assistance with policies to suit your needs and budget.
- I won't ever be able to use it: Life insurance is all about risks. There may be a 50/50 chance for you to sustain an injury or fall into an illness that will lead to a claim. The choice falls into your hands – have the peace of mind that whatever may happen to you, you are covered and you don't have to worry about your finances and rely on your savings when you get injured or sick, or live for the moment without any cover.
- It is very difficult to get insurance: If you have a pre-existing medical condition, work in a high-risk job, or you are a smoker, it does not mean that you cannot obtain any life insurance coverage. More and more insurance providers are specialising in high risk insurance to make it easier for people to get cover.
Understanding the concept of online life insurance
Whether you are thinking of getting a life insurance quote face to face with a financial planner or online, it is still important to understand what life insurance is all about. As previously mentioned, buying life insurance is an important decision as it constitutes a long-term commitment. You just don’t click, tick the boxes, and sign off on your life insurance policy without a real understanding what kind of policy you are getting or what level of cover you have.
While the purchase process may have gotten easier, it is still crucial to be vigilant when assessing different types of cover available in the market to compare as many policies as possible to determine which ones are most suitable to your needs.
What are the different types of life insurance I can obtain online?
- Life cover: If you are looking to provide financial support for your family in the event of your death or if you have been diagnosed as terminally ill, then you may want to consider life cover. It provides a lump sum benefit payment to your financial dependents, so that they are able to keep up with any ongoing living expenses, outstanding debts, children’s education expenses and cover any funeral costs.
- Total and Permanent Disability (TPD) Insurance: is suitable for applicants who are looking for cover that can provide them with financial support in the event that they are unable to work ever again as a result of a permanent disability. The lump sum benefit can be used to replace any loss of income and assist the transition to your new condition.
- Trauma Insurance: is a valuable form of protection against serious medical events, such as cancer, heart attack, organ transplant or Alzheimer’s disease. It works as a financial buffer so that you are able to meet any immediate medical and rehabilitation expenses, while keeping on top of your ongoing living expenses.
- Income Protection: is designed as a replacement income in the event that you are unable to work temporarily as a result of an illness or injury. Generally, income protection provides a monthly benefit of up to 75% of your average salary and you can tailor your policy with different features and benefits to match your personal circumstances. Some of the features that you can obtain from an income protection policy include: rehabilitation expenses benefit, needlestick injury benefit, and elective surgery benefit.
- Funeral Insurance: provides a lump sum benefit so that your family can meet the cost of your funeral arrangements. Funeral cover is suitable for applicants who are looking to secure a form of financial cover, but are not eligible to apply for life insurance due to age, health or occupation restrictions.
How to compare life insurance quotes online
As more and more people are looking for information on life insurance online, it is no surprise that this is also where they're going to get their life insurance quotes. Many insurance companies have an online presence these days, with most insurance adviser also providing their service on the web, making it easier for you to request life insurance quotes online.
However, before doing so, it is important to ascertain the type of cover that you may need and the purpose that it may serve. Consider the following key steps:
- Identify your needs: It all begins by evaluating the need for you to get a life insurance policy. Is it to cover financial expenses when you die, or is it for the education of your kids? By making your goals clear, it is easier to calculate a sufficient amount of cover to take out.
- Know your budget: Before you can undertake any long term premium payments you'll have to know what you can afford, otherwise the time will come when you'll stop making payments and the cover will be lost. Knowing your budget limitations will also let you know what level of options you can add to the life cover itself such as income protection and total and permanent disability cover.
- Who needs to be covered: It is worth considering taking out cover for your spouse and children. Joint policy options can offer premium discounts of up to 10% and some providers will give free child cover on some policies.
- Work out the exact amount of cover you need: When calculating the amount of life insurance cover that you may need, it is important to consider all components of your family’s financial obligation. Using the needs approach, think of how much the family spends on living expenses, bills, debts repayments, and any other expenses, such as funeral and medical costs.
- Obtain multiple quotes online. Some life insurance policies may have similar names but the built-in features, additional benefits and cost will vary significantly between providers. They will also have different rules and provisions. Therefore, it is important to compare and get multiple quotes before making your decision.
The steps to successfully buy life insurance online
Are you ready to take the step and secure yourself a life insurance cover? Then you want to check out this step-by-step guide in buying life insurance online:
How to receive a life insurance quote
How might my online life insurance quote change?
When you receive a preliminary life insurance quote online, it is important to note that the premium rates are determined based on the initial information that you have provided to an insurance adviser, which is usually based on your age, gender, smoking habit, type and level or cover. To get an accurate quote on your life insurance policy of choice, additional details will be required and you may be asked to complete a medical examination to provide the insurer with more information on your health.
Health is one the most important factors that will determine how you will be paying for your life insurance policy. You can expect that if you are a smoker, or have a pre-existing medical condition, you will pay an additional loading on top of your premiums. Your online life insurance quote will also change depending on additional features and benefits that you have chosen for your policy.
What might I pay in addition to my online life insurance quote?
When you agree to sign up for a specific life insurance, you also won’t be charged with any establishment fee. So, there are absolutely no fees to pay when you apply for life insurance online, although you may have to cover stamp duties when your life insurance is being set up, which may vary between states. Stamp duties aside, there is no cash transaction taking place until your first premium payment on the date listed in your policy schedule.
Essential tips for getting online life insurance
When buying life insurance online, even with the help of an insurance adviser, it is advisable to follow these few simple tips to help you make informed decisions:
- Consider your family: Life insurance is designed to provide for your family if you are no longer around to care for them. So, it is necessary to consider their needs first thing to help you identify your needs better and quicker. This will also help you decide what type of cover and the level you want.
- Seize the opportunity: When you start at a younger age, the premiums you pay are lower as you are less likely to suffer from any preexisting medical conditions.
- Review the insurance company’s track record: It is crucial to be happy with the actual provider of the policy you elect to take out. Look into the insurance provider's background, claims history and customer service to determine whether they are reliable or not. When in doubt, seek assistance from a financial adviser to help you find not only the right company, but policy as well.
- Do not withhold information: When it comes to your medical history, never make the mistake of withholding any information that may influence the insurance underwriters decision to provide you with cover. Failure to do so could result in ineligibility of future claims. Be as truthful as possible so that you can have a proper assessment.
- Change your lifestyle: Changing your lifestyle can have a huge impact on your premiums. Simply put, a smoker might find himself paying double the premiums of a non-smoker.
Ready to receive an online life insurance quote?
The importance of having adequate life cover in place to protect those you love cannot be overstated. You can start by doing a little research on your own to make sure that you have a general understanding of the different life insurance policies on offer and the insurance providers that offer them.
Gain a no-obligation online life insurance quote
Need some assistance? You can also speak to our insurance consultants who can provide with a tailored advice on a suitable option to match your cover needs.