Life insurance is increasingly becoming a necessity, with people trying to ensure that their families have some form of support after their deaths. With so many providers out there, it really is a beneficial to do a proper life insurance comparison. So why exactly is it a necessity to compare and check out different prices and policies?
The increasing numbers of companies that offer life insurance are making this comparison absolutely essential. According to the Australian Prudential Regulation Authority (APRA), there are currently over 20 registered life insurance providers operating across the country. With an alarming number of options at our disposal, you need to research the prices thoroughly to find the most suitable one. Two companies may be offering the same amount of cover at two separate prices but a little investigation shows that AMP Australia demands $75 premium for covering a 40-year-old, non-smoking male applying for $1,000,000 life insurance. This same service is offered by AIA Australia for $71 a month. While the price difference is small, the savings in the long run can be huge.
Another reason to compare is quite simply, to figure out if you needs it or not. A person for instance, earning a handsome salary to send his kids to college, pay the debts on his house and supports his wife may need insurance to cover those needs for his family after his death or life changing incident. An elderly man with an elderly working wife and no children may not need life insurance at all. According to AMP’s website, a 40 year old earning $40,000 a year with a 5% increase will have earned over a million dollars by the age of retirement; this is indeed a very large asset to protect, and a comparison using websites can help get a good deal and the right cover.
Such a comparison is also needed to figure out the level and type of insurance you need. When comparing the quotes of different insurance companies, you will come across multiple offers. Some companies offer benefits such as income protection, allowing you to receive money for days when you are ill and can’t work as well. It is important to properly understand the policy and you should also read the PDS (Product Disclosure Statement).
A comparison is also necessary to help identify authentic companies from a potential scam. Using APRA’s database, one can make sure that the company he is dealing with is registered to carry on its business.
When making a life insurance comparison, a person will find many websites that have various tools for life insurance quotes comparison. These tools will allow the user to browse through the policies offered by a lot of insurance companies, comparing them at the same time and, inevitably, finding the best offer. Choosing a policy is dependent on several factors, but a quick and thorough comparison will definitely make the job of which one to choose easier.