9 Secrets About The Pros And Cons Of Life Insurance

Hi Everyone,

I consider myself an advocate for the consumer in this area. Most people give almost no thought to either needing this type of insurance or what they are getting when they do. Here are my most basic  tips and traps as seen from someone who deals in this area as a specialist. 

Tell me what you think and if you can add to this productively please feel free.

1. You get what you pay for! (sound familiar) In other words if you have a cheap policy it may be cheap only until you really need it, then some fine print could exclude your claim.

2. You are most likely to  incorrectly insure yourself. Chances are you are only  thinking of why  you need cover now for and not what  your past needs or future requirements are! What is your situation like when you think about this? 

3. A stepped policy (age based) is ONLY cheaper for the short term, and chances are you are taking the cover for a long term commitment such as a mortgage or an addition to the family. Taking a stepped policy will ONLY make the insurance company more money out of you in the long term.

4. Don't lie on the application form, as the insurer can access your medical records from the past.

5. If you have any skeletons in your closet, make sure you have nominations and go get a will done professionally, not a will kit.

6. The younger you are when you take cover out, the cheaper it will be in the long term.

7. A person on a stepped policy is most likely to cancel a policy before they are likely to claim on it. Insurance companies know this so don't let the Financial institution SELL you a stepped policy as it will increase yearly in price, it  will cost more in the long term. You may be inclined in your 50's to  cancel it just when you are most likely to claim on it.

8. Don't be sold something that is rubbish. Do you think if they will insure you regardless of your heart condition that they are actually going to pay out for that concern. Accidental death policies are well lets just say hopeful - use them if it is the ONLY insurance cover you can get after trying your other options.

9. GET ADVICE FROM A PROFESSIONAL not a bank or tele-sales person over the phone. Chances are the Bank rep has little or no experience and can only sell you their product and that isn't advice!

 And please understand this is my  views only and this is general in nature, so seek professional advice for your own situation. Feel free to contact me on www.lifelifelife.com.au to discuss.

Mickord Mickord
36-40, M
Feb 10, 2010