Business Life Insurance in Australia 2019 … Do you consider your life to be precious and important? Just as you protect your homes, cars and other property, do you know that you can insure your life? Yes, you can … Because there are many insurance companies available just for you to insure your precious life.
What is life insurance? But let’s first start by defining insurance
Insurance is an agreement whereby a company or the state agrees to provide a guarantee of compensation for a specified loss, damage, illness or death in exchange for the payment of a specified premium.
Life insurance is the type of insurance that pays a sum of money either upon the death of the insured person or after a fixed period.
You may ask again, why life insurance, or what is the need for it?
The fundamental reason life insurance is important is the peace of mind you get. You can sleep easy knowing what life throws at you; you and your loved ones will be okay financially. In short, you are paying the insurer for a good night’s kip.
If you’ve decided you need life insurance but have no idea where to start, I’d love to help. I’ll start by showing you the factors you need to consider when choosing a life insurer in Australia.
Factors to Consider Before Choosing a Life Insurer in Australia
The best life insurance company is the one that suits your needs and your budget, while giving you peace of mind that your family will be protected when you die.
There are numerous factors to consider before selecting a life insurer, such as the features and benefits they provide in their policy and the long-term and short-term affordability of their premiums. Others include:
GET FULL COVERAGE
By making sure the company you choose offers peace of mind knowing your family will be able to live the life they’re used to or, if you’re not married, make sure your coverage is sufficient for mortgage repayments and other debts.
Also, consider life insurance that offers a funeral advance benefit, so your loved ones don’t have to worry about paying your final expenses.
KNOWING THE TERMS AND CONDITIONS
Locating the best policy for you and your family should be determined by the terms and conditions of the company’s policy which you can refer to in their Product Disclosure Statements (PDS).
Direct insurer offerings versus a retail insurer and a group superfund are very different, which is why it is so important that you carefully read the Product Disclosure Statement (PDS) for each policy you are considering.
LIKELIHOOD OF CLAIMS BEING PAID
Life insurance companies in Australia are regulated by the Australian Prudential Regulation Authority (APRA), which helps ensure that the insurer has the funds to meet its claims obligations.
However, according to the ASIC 498 report on life insurance claims, your claim has a 71% higher chance of being rejected when purchased directly from the insurer (not recommended) compared to purchasing life insurance through a retail distribution channel (advised).
TERMS AND CONDITIONS
In finding the best policy for you and your family, you should consider the terms and conditions of the company’s policy which can be found in their Product Disclosure Statements (PDS). The offerings of the direct insurer versus a retail insurer and a group superfund are very different, which is why it is so important that you carefully read the product disclosure statement (PDS) of each policy you are considering.
LONG-TERM LIABILITY
Make sure you will be able to afford the policy premiums now and in the future. If you are looking for short-term affordability, a tiered premium style may be right for you. On the other hand, if you can start with higher premiums that don’t increase each year due to your age, then a company that offers tiered premiums might be for you.
DISCOUNTS AND REWARDS
You should consider companies that add even more value to their policyholders by helping them save on their premiums and encouraging them to live healthier lives. While rewards programs should not be the deciding factor when choosing a company, it does add a little something extra.
Top 10 life insurance companies available in Australia.
AIA
AIA Australia is a global life insurance company that has successfully combined its international presence with local expertise to offer some of the most comprehensive and flexible life insurance policies in Australia. The products provided by AIA are constantly reviewed to ensure that the changing needs of Australians are always fully met in order to protect the things that matter most to you.
AMPERIO
This is a trusted financial institution that has been assisting Australians for over 160, AMP’s insurance team is committed to its clients and aims to process insurance claims quickly and efficiently. AMP’s products are regularly used to ensure that the insured person receives competitive coverage.
ASTERON
This is the company that wrote the first life insurance policy in Australia and also made the first payout shortly thereafter. Today, Asteron Life is part of the Suncorp group listed on ASX and remains committed to helping customers get and stay healthy for life through the Asteron Life Wellbeing program.
BT
This is the wealth management arm of Westpac Group. Customers are licensed for any of BT’s wealth services, including life insurance products from any Westpac or Westpac affiliated bank branch. BT is passionate about its customers and the wider community, participating in community organizations such as Clean Up Australia Day, Earth Hour and Australia’s Biggest Morning Tea.
COMMUNITY
Comminsure is part of the Commonwealth Bank Group and although the name “Comminsure” was only established in 1999, its roots go back to 1873 with the founding of the Colonial Mutual Life Guarantee Society. Comminsure prides itself on being one of Australia’s leading insurance providers with simple insurance solutions for its customers.
MACQUARIE (ZURICH)
Macquarie Bank has been providing life insurance for clients since 1990 and, despite being a young operation, is backed by people with the experience and expertise to make the operation a success. Macquarie is currently managed by Zurich Life Insurance.
MLC
MLC Life Insurance is the asset and wealth management arm of National Australia Bank (NAB), which has been providing multiple financial services such as superannuation, insurance and investment solutions to Australians since 1886 under its original name “The Citizens”.
MLC’s goal is to continually improve its customer service with access to a diversity of investment managers from around the world.
ONE WAY
Now owned by ANZ Bank, OnePath was formerly known as ING Australia. OnePath has operations in more than 32 countries and offers its products and services to more than 8 million customers. The passion for helping people protect is evident from the numerous awards it has received, such as Money Management / DEXX & R.
TAL
TAL is Australia’s life insurance specialist, offering easy-to-understand, easy-to-obtain and easy-to-claim life insurance to millions of 2.5 customers in Australia. Owned by one of the world’s largest life insurance companies, Dai-ichi Life of Japan, TAL has won Life Insurance of the Year (Australian Banking and Finance Awards) for three consecutive years, and many other awards.
ZURICH
Zurich Life Insurance is a Swiss company known to offer life insurance products in more than 170 around the world. It was established in 1872 in Zurich, Switzerland. It acquired the Commonwealth General Assurance Company (CGA) in 1961 and has provided excellent services and solutions to Australians over the years.
There are many terms used frequently here that you must have discovered. These terms are explained below to guide your understanding.
