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Whether it’s through work, our superannuation, or something we started paying years ago, most of us have some sort of life insurance policy. Though it is good to be protected, many of us are doing ourselves a disservice. Life insurance is designed to support those we love in the event of our passing, but if we haven’t taken the time to carefully review our policy recently, there is a massive chance it won’t do what we want it to. Today, we want to share some advice on how to get the most out of your life insurance policy and ensure it aligns with your needs.
What Life Insurance Traditionally Covers
Traditionally, life insurance is designed to provide a lump sum payment to our beneficiaries in the event of our passing. This payment is supposed to cover mortgage payments, education costs, funeral costs, living expenses, debts, and more. However, if we don’t take the time to review it correctly, there is a chance that it won’t.
What a Tailored Policy Can Achieve
With a tailored life insurance policy, we can achieve absolute peace of mind. Of course, the process of ensuring our life insurance will do right by us can be long and a little daunting, but the rewards of doing so are genuinely astonishing. Imagine leaving your loved ones in a state of absolute financial security, enabling them to complete their studies, live their lives, and always have the security of a home. Nothing can beat that.
Understanding Add-ons and Inclusions
Another incredible trick with life insurance is knowing how to enhance your policy with add-ons and inclusions. As mentioned, life insurance is designed to pay the benefit in the event of your passing, but it can be tailored to do so much more. Sometimes, when purchasing life insurance in Australia, your providers will ask if you want to add income protection, TPD, home insurance, or critical illness. Including these in your life insurance policy will save you a significant amount and ensure you will never encounter financial hardship if you are unable to work due to accidents or illnesses that life throws at you.
A Guide to Assessing Your Situation to Review Your Policy
To finish up, it is probably worth explaining the process of enhancing your life insurance policy. Firstly, this should be carried out as regularly as possible, especially if you encounter a significant change, such as a promotion at work or a new child. The process of reviewing your policy is simple, but it does take time. To get the most out of your policy, you need to carefully assess your income and all your current and future outgoings. This should include business costs, future education costs, mortgage payments, utilities, spending, holidays, debts, and unexpected expenses. Going through absolutely everything can help you choose a benefit amount that you can afford and will support your loved ones. It isn’t a fun task, but it is certainly worth it.