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After You Have Purchased Life Insurance…

The process of buying life insurance can be a little morbid and daunting.  However, once you have obtained the correct life insurance cover for your needs, what should you do next?  Follow along as we look at life insurance – after you are finished purchasing it.

You Aren’t Done with Life Insurance

As Laura Coffey states, “Life insurance isn’t the most fun subject to dwell on at length or think about during your time away from work.”  She is right on target.

However, there is some sad news for those that have just completed their purchase of life insurance: you aren’t finished with life insurance.  .  Perhaps it will be clear if you observe some of the following scenarios that you could run into:

  • You might need more life insurance.  There is nothing against or wrong with purchasing another life insurance policy; many experts recommend this option.  With increased financial responsibilities come the possibility of life insurance.
  • At the very least, you will need to re-evaluate where you are with life insurance.  You can always lessen your coverage in some way, or purchase more coverage.  As your financial situation changes, so too will your life insurance situation.
  • You might need to add to the life insurance package.  As MoneySmart identifies, there are several types of life insurance, including total and permanent disability, trauma cover, and income protection insurance as the “family of life insurance policies.”
  • If you decide to borrow or sell against your life insurance policy, you must re-evaluate your life insurance needs and coverage.

Of course, there will likely be other scenarios that you may encounter.  Indeed, the lack of completeness with life insurance is certain.

Are Your Loved Ones Or Beneficiaries Ready?

There is a direct response to when you are finished comparing life insurance policies, and choosing the one that is right for you.  Items must be in order if the life insurance policy is to be collected.

As MoneySmart states, a website run by the Australian Securities and Investments Commission (ASIC), the ASIC withholds money for policies that are unclaimed for seven years following its maturity.  There is a process outlined for going through this, but once again, we reach another item of clarity: you don’t want to go through this (or your beneficiaries, of course).

Once you have purchased life insurance, it is wise to go through the process of claiming life insurance with your family/beneficiaries.  Make sure you have a plan pertaining to the policy itself.  While you are at it, you might want to go through your living will and other items that are important to discuss (i.e. requests concerning hospitalization/life support in tough situations).

Don’t forget about life insurance when you have purchased a policy.  Make sure you continue to evaluate your needs and life insurance, and make sure your beneficiaries know what to do.

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

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