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News2 Common Pitfalls to Avoid When Buying Life Insurance
2 Common Pitfalls to Avoid When Buying Life Insurance

2 Common Pitfalls to Avoid When Buying Life Insurance

Tags: Life Insurance
Last updated by Shelia Taylor on

Knowing and understanding life insurance is hard. For example: what is fully underwritten versus not underwritten life cover? Is it better to use the brand you see being advertised on your favourite show? Is it better to use a brand that doesn’t require a health check? The questions go on and on.

FiftyUp Club is here to make sure you avoid these common pitfalls when buying life insurance:

Pitfall #1: Not Being Informed

Many insurance policies have limited or no underwriting. Examples include many so called “Direct” Insurance Policies (those not bought through a financial adviser) and some policies bought through Superannuation. If your insurer isn’t asking the right questions or asking for a health report at sign up, making a claim could be a slower process later on. Read everything your insurance provider gives you and the fine print of the policy and if you don’t understand anything, ask them to explain it to you.

Pitfall #2: Not Taking out the Right Cover

There are all sorts of cover available like Life Insurance, Income Protection, Trauma and TPD cover. Life Insurance pays a set amount of money to your beneficiaries when you die. Income Protection pays an ongoing income if you can’t work due to illness or injury. Trauma Cover pays a lump sum of money if you suffer a medical condition that impacts your life or lifestyle. TPD (Total and Permanent Disability Cover) provides a lump sum of money for illness or injury that causes a permanent disability that stops you from working. Download a detailed guide.

If in doubt on anything, never hesitate to ask more questions or reach out to experts who can explain to you what your policy has or doesn’t have.

 

Any advice provided in this article is general in nature and does not take account of your personal objectives, circumstances or needs. If in doubt about your personal situation you should seek financial advice.

FiftyUp Club Pty Ltd (ACN 166 905 175) is the promoter of the FiftyUp Life Insurance product and is pleased to work with NobleOak to make this product available to you.

FiftyUp Life Insurance cover is issued by NobleOak Life Limited ABN 85 087 648 708 (AFSL No.247302). Please consider the FiftyUp Life Insurance PDS and NobleOak's Financial Services Guide which set out the terms and conditions for the life insurance cover to make sure this cover is right for you.

Originally posted on .

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2 Common Pitfalls to Avoid When Buying Life Insurance

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Vicki
Vicki from NSW commented:

I have life Insurance which is paid through my super. I’m considering changing to an industry superannuation fund. Would I loose my life insurance? Also I’m a 66y female working a 32 hour week so when would my life insurance stop? 

Shelia at Fifty Up Club
Shelia at Fifty Up Club from NSW replied to Vicki:

Hi Vicki, I don't have the answer to "would you lose your life insurance" question. You would need to check with the insurer you are going to go with for that as well as "when would my life insurance stop"? You can speak to NobleOak directly at 1300 781 075. 

Gertraud
Gertraud from ACT commented:

As this is the "fifty up club" it would be helpful to state the maximum age at which life insurance if no longer available, usually between 60 and 70 years. 

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