Using Modern Technology to Purchase Life Insurance in Australia: Strategies

What was once a time-consuming, laborious, and intensive task has been dramatically simplified by the constant improvements and innovations of modern technology. Sourcing, researching, and purchasing life insurance in Australia is no longer something we can justifiably put off, as technology has rendered it no more complicated than online shopping. This article delves into the process, highlighting tips and strategies for maximising the benefits of modern technology when acquiring life insurance in Australia.

Do You Need Life Insurance?

Whether you need life insurance or not depends mainly on your circumstances. Ask yourself the following questions:

Do I have financial dependents?

Spouses, children, and other loved ones who rely on your income can be provided with sufficient financial support, enabling them to maintain their standard of living in the event of your passing.

Do I have debt or significant expenses?

Mortgages, loans, and other debts are covered by some life insurance policies, ensuring your family is not held responsible and left to struggle in your absence.

Do I want to cover my funeral/burial costs?

Even a basic funeral can be eye-wateringly expensive. The right life insurance policy can ease the financial burden for the bereaved.

Do I have sufficient savings to cover my family’s needs when I’m gone?

Individuals with plentiful savings or valuable investments may not need life insurance. However, for those with savings that won’t last long, a life insurance policy can be a big help.

Am I working towards long-term financial security?

Life insurance can also serve as a tax-efficient means to transfer wealth to heirs and leave a lasting legacy for future generations or make charitable donations.

Should I consider business continuity and succession planning?

Responsible business owners who want to keep operations running smoothly, provide liquidity, and protect against financial loss in the event of a key team member’s passing need an appropriate life insurance policy.

Would I benefit from investment benefits and cash value growth?

Specific life insurance policies, such as whole life insurance, accumulate cash value over time. This can be accessed and used as a supplementary financial resource in later life.

If you’re uncertain, please seek reliable independent financial advice before making any decisions. You may want to consider ‘term’ life insurance, which involves temporary coverage for a set period, or ‘whole’ life insurance, lifelong coverage with potential cash value growth.

Life Insurance in Australia: Using Tech for Efficient and Effective Research

Even individuals with minimal online experience should be able to easily navigate comparison sites and search engines to source, compare, and research insurance quotes. Some tips to facilitate the process include:

• Give yourself sufficient time to avoid rushing—Although the process is significantly faster and more convenient than it once was, it’s not a race. Take your time, commit to the due diligence, and make astute, informed decisions.
• Use trusted, reputable comparison sites—Many offers will be similar across multiple sites, so it’s worth trying a few different ones to compare. If the comparison site is unfamiliar, a quick search engine check should give you ample information and reviews.
• Scrutinize and shortlist potential policies—Legislation requires policies to be listed without hidden terms and conditions, but the most significant differences can sometimes be hidden in plain sight.
• Research each shortlisted provider—You are unlikely to recognize all of the providers that offer life insurance in Australia, so search online for reviews and testimonials.
• Check official registration—All financial entities are required to register with the government, and their information is stored in a publicly accessible database.
• Speak to the provider directly—Although modern technology has served us well to this point, sometimes the old methods are the best. There is no substitute for speaking to a representative of each shortlisted provider on the telephone. It’s an excellent way to gauge attitude and professionalism, and clarify any policy details. There’s also a decent chance you’ll be offered additional incentives and discounts over the phone.

Life Insurance in Australia: Stumbling Blocks to Look Out For

Although life insurance in Australia is readily available to most adults, as with all insurance policies, there are certain conditions, caveats, and exemptions to be aware of. It is crucial to scrutinize the details of each shortlisted policy for the following:

• Pre-existing medical conditions
• Age restrictions—Typically, policies are available to individuals between 18 and 75, but this is not set in stone.
• Increased premiums or exemptions for certain occupations—Occupations perceived as high-risk may be subject to additional conditions and higher premiums. These typically include the following:
  • Heavy industrial work
  • Mining
  • Construction
  • Aeronautical engineering
  • Dangerous activities and pastimes—Individuals who engage in activities such as skiing, rock climbing, riding motorcycles, or participating in policy-listed activities may encounter higher premiums or be exempt from coverage.

Conclusion

Our ability to source, research, and purchase life insurance in Australia is made more straightforward and convenient as modern technology continues its ceaseless march towards the future. With sufficient determination, time, and access to the right technology, acquiring a game-changing life insurance policy has never been easier or less stressful.