This advertorial has been written by our third-party product provider NobleOak Life Limited
Before examining life insurance myths, consider one key truth: fully underwritten life insurance could bring an added degree of financial security and peace of mind
Consider this: Some available life insurance covers don’t ask many health questions when you apply. Often these have broader pre-existing condition exclusions that may result in a greater likelihood of your claim being delayed or even declined. If you already have life insurance or are thinking about taking out cover, do your homework: always read the Product Disclosure Statement (PDS), the Target Market Determination (TMD) and other documents from your insurer to make sure you know what you are and are not covered for. While it may be easy to buy cover, it doesn’t necessarily mean it’s the best life insurance for your situation.
Consider this: Even if you don’t have any dependants or a partner, there may still be debts to pay and funeral expenses to cover if you were to pass away. For example, the average basic cremation in Australia costs upwards of $4000, with burials costing much more. If you don’t have many debts, or a partner or children to think about, then your life insurance may cost you less than you think because you may decide that you do not need a high level of cover.
Consider this: The life insurance provided within many superannuation funds may not adequately cover your life insurance needs. Often, only a minimum default level of cover is provided. If your super fund provides life insurance cover, you should take the time to consider whether the sum insured is adequate in helping to cover your levels of debt and how much you want to provide for loved ones should you pass away.
Consider this: The cost of life insurance might surprise you – it may be less expensive than you think. Policies vary, and premiums will depend on your age, health, and lifestyle. A 40 year old, male, non-smoker could get NobleOak’s Life cover from 90c a day, depending on the level of cover they want*. Life insurance could help to safeguard your family if you were to pass away.
Consider this: Fully underwritten = greater certainty. One of the key points of confusion can centre around the difference between “fully underwritten” cover, where your health and lifestyle are fully assessed upfront, versus products that are not fully underwritten (“partially underwritten”), where often a more detailed assessment is made at the time of claim when your family may be going through a difficult time. With fully underwritten cover, the insurer asks a number of health, occupation and lifestyle questions upfront and sometimes requires medical tests and details of your medical records. This process does take longer than cover that is not fully underwritten but results in far greater certainty about the risks the insurer is taking to provide cover, and importantly greater certainty for you at claim time.
Consider this: While it’s important for the family’s main breadwinner to seriously consider taking out life insurance, many families make the mistake of not thinking about their primary caregiver taking out cover. Stay at home parents provide an important role as they generally take on the majority of the caring and household responsibilities. Bear in mind too, that the family’s main earner may have to reduce their hours of work to help care for the children if the primary caregiver were to pass away.
Consider this: Many people delay taking out cover until they’re older. But life insurance premiums are calculated based on a number of factors including your age and health, which is assessed before your cover commences (although premiums usually increase with age).
Taking out life insurance as you get older may get more expensive or difficult with time, and exclusions may apply. It makes good sense to think about applying while you’re still young and healthy.
Fact: A medical diagnosis does not automatically mean you’ll no longer be eligible to obtain life insurance. You need to disclose your health conditions during the application process, but this doesn’t necessarily mean that cover will not be provided. In some instances, cover will be provided with an exclusion relating to your specific condition.
Premiums may be higher to reflect your increased risk levels, but if you’re taking positive steps to manage your condition, you may be able to keep any additional premium cost to a minimum. Bear in mind that there are some medical conditions where NobleOak won’t be able to offer Life Cover, but these are limited.
Consider this: It’s important that you keep your life insurance policy up to date and consider whether you should adjust your cover levels with significant life events. With major life events and changes, like marriage, birth of a new baby, increasing your mortgage or adopting a child – it’s important to consider speaking to your insurer about your options, like applying to increase your life insurance cover. This could help act as a buffer against being underinsured as your life circumstances change.
Reasons to consider NobleOak’s FlexiCover Life Insurance