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5 steps to reassess how much life cover you need

Life insurance is a new year’s resolution that is easy to achieve and has a lasting impact for your family.

Life insurance can seem like a catch-22: it becomes more expensive as you age, but it becomes more important, too. New research from Rice Warner shows that life and disability insurance premiums have shot up by 215 percent in four years, though individual salaries have not followed suit.

As life cover expenses increase, more families are tempted to cancel their coverage—a move that industry experts warn could lead to disaster. Living without life cover is a risk that could have devastating effects on your loved ones. An alternative is to shop around for life cover, because you may be able to find a policy that offers better value.

Here’s How You Do It:

Step 1: Select your current age below.
Step 2: Once you answer a few questions, you will have the opportunity to compare quotes from up to 13 of Australia’s largest insurers. You may also be entitled to a free consultation.

Here are five steps for identifying the life cover you need, right now.

  1. Know where you stand

    It’s a tough question to consider, but if you were to pass away today, where would it leave your family’s finances? Take stock of your financial situation so you can answer that question with confidence. Here are a few things to think about:

    • Existing life cover (including any through super)
    • Total outstanding debts (mortgage, credit card debt, or business loans)
    • Total assets and savings
    • Predicted expenses, like children’s education
    • Monthly living expenses (food, transport, utility bills, etc)
    • Emergency expenses (car breaks down, medical bills)
  1. What are your life insurance needs right now?

    Life insurance requirements can change over time, so it pays to check in with your coverage on a regular basis. If you have a bigger mortgage, less debt, or your family size has changed, your coverage needs have probably changed, too.

  2. Is your premium competitive?

    The key word here is competitive, not cheap. Just as with health insurance, life cover is all about value for money. A cheap policy is no good if it doesn’t pay out on its claims, so make sure you know what you’re getting. Compare policies online with LifeInsuranceComparison.com.au to see the price of similar policies on the market.

  3. Consider building in a buffer

    There’s no magic formula for calculating exactly how much life cover you need. To be safe, it doesn’t hurt to build a little bit extra into your life cover payout. A life insurance advisor can help you make an informed decision about how much of a buffer is appropriate.

  4. Talk to an advisor

    There’s no doubt that life insurance can be complicated. If you have any questions about choosing a policy or switching to a new one, a quick chat with an advisor at Life Insurance Comparison can help you get your head around your options. They’ll also walk you through the process of switching, making it as hassle-free as possible.

Get Started Now:

Step 1: Select your state below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.

LifeInsuranceComparison.com.au's online quote comparison tool makes it easy to get quotes from 13 Australia's biggest life insurers