10 Reasons To Take Out Term Life Insurance

Need More Reassurance on Why You Should Have Term Life Cover?

There different types of life insurance policy that are available in Australia. These insurance products are designed to protect everyday Australians on specific events; term life cover for death or terminal illness, TPD insurance for total and permanent disability, critical illness for traumatic medical events, and income protection for coverage on your income for when you are unable to work because of an illness and injury.

If you are looking to provide financial support for your family, shall you pass away prematurely or you only have 12 months to live due to diagnosis of a terminal illness, you may want to consider term life insurance. You can obtain quality coverage to suit your needs and within your budget, giving you the peace of mind on your family's future.

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Why Term Life Insurance?

The number one reason for this is that Term Life Insurance is simple and affordable – you get to set how long you want the policy to cover you, and you pay a low initial payment for your premium. Other reasons why term life insurance is the life insurance of choice nowadays are as the following:

  1. Term life cover can be customised to fit your lifestyle

Term life insurance gives you the power of choice. The features which you have now can be changed or modified in the future according to what you need. These changes can also affect your premiums. And as your ability to pay for premiums increases, you could add other options which you think are necessary.

  1. Affordable coverage is available to fit your budget

Since term life insurance can be modified, you can choose a limited package that fits your budget at the moment – one which you can increase when you have the means to pay for wider coverage.

  1. Flexibility to choose when to make payments

You have the choice of whether to pay your premiums on a monthly, quarterly, or annual basis. However, payments made on an annual basis offer huge discount for as much as 10% less on premiums.

  1. Term life insurance is available to smokers and non-smokers

If you are a smoker who is considering getting yourself insured, a term insurance policy is for you. It should be noted, though, that smokers are charged a higher premium than non-smokers because of the different health risks brought about by smoking.

  1. Some types of term insurance are available without medical exams

If you are worried that you will have to undergo a battery of medical and physical examination to qualify, there are various term insurance policies which do not require a medical exam. You could consult your financial adviser about this, or shop around which insurance provider offers such policies.

  1. You can choose the length of your policy

Term life insurance gives you the option of choosing your coverage for as short as 5 years to as long as 30 years depending on what your needs are. Whether you are thinking of short-term or long-term coverage, term life insurance gives you a lot of options for it.

  1. Term life insurance can protect your family from financial strains

With level term policies, your premium payments are guaranteed to stay the same throughout the term of your policy. Term life can be an excellent choice in cases where estate creation is needed to protect those who depend upon you in the event of your premature death, such as providing for children until they graduate from college and become financially independent, paying off outstanding debts and loans, and paying off mortgage loans of your home.

  1. Term life insurance can protect your assets

Term life insurance can be seen as a form of asset protection. Your financial dependents may depend on your ability to support them with the income that you produce on a monthly basis. Consider when the breadwinner is taken away by an unfortunate event all of a sudden, the family left behind will have to rely on their savings and it can probably only last for a short amount of time. Term life insurance can be treated as a replacement source of income if the insured passes away. It’s also the best kind of income because it is typically tax-free (for financial dependants; non-financial dependents are not eligible for tax-deduction).

  1. Term life insurance guarantees a fixed term amount of premium and benefits

The level term policy of term life insurance ensures you that you pay the same amount of premium throughout the term of the policy, unless you add the feature or level of cover.

  1. It gives you an invaluable peace of mind

This is the most important benefit of term life insurance – peace of mind. It allows you to sleep at night worry-free because you know you have cover for life’s uncertainties.

With term life insurance, you can provide your family with the financial protection they deserve. Term life insurance is affordable and can be tailored to suit your needs and requirements. So, why wait one more day if you can protect your loved ones today?

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Coverage is the amount of money that you will be paid in the event of a claim. An insurance consultant can help you determine an appropriate amount. Calculator
Provides a lump sum payment if you become totally and permanently disabled and are unable to return to work.
Provides a lump sum payment if you suffer a serious medical condition. Cover can be taken out for 40-60 medical conditions depending on the policy you choose.
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Compare Life insurance quotes from these direct brands

Name Product Maximum cover Maximum Entry Age Minimum Sum Insured Guaranteed Future Insurability Expiry Age Short Description
Get a quote for up to $15 million in life insurance cover. Cover can be tailored to meet your personal needs.
Join Qantas Life Protect and earn up to 100,000 Qantas points. T&CS apply.
No expiry age as long as premiums are paid
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™. Take out cover today and you could get a bonus $100 Gift Card.
Flexible cover options to suit your budget. New eligible customers can receive 25,000 Velocity Points. Ends 31 Aug 2018. Min monthly premium and T&Cs apply.
Receive a 10% discount on the second person when two applications are submitted at the same time, and both policies are issued.
Get flexible life insurance up to the sum of $2,000,000.
A simple life insurance product that can offer up to $1,500,000 in a lump sum payment on death or diagnosis of terminal illness.

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Maurice Thach

An insurance researcher and writer for finder.com.au who loves finding an answer to the question "Am I covered for ________?" Maurice has also completed a Tier 1 Life Insurance and a Tier 2 General Insurance Certification under ASIC's Regulatory Guide 146. This means he can confidently provide general advice for life insurance and non-life insurance products.

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