Choosing the Right Life Insurance for Your Life Stage

  • Posted 05 May

Choosing the Right Life Insurance for Your Life Stage

Life insurance is an important part of being an adult. Which is why you should think carefully about the type of cover you have in place and ensure that it matches the goals and dreams you have for your family or loved ones, should the worst happen to you.

You need to ensure that you have adequate protection in place. It’s all about choosing the right life insurance that matches your life stage. A single person is not going to require the same type of cover as a father of two and a retiree is not going to need the same amount of cover as a childless couple.

So, how do you determine what is the right cover for you? Follow these tips and always ask questions of your insurance broker if you don’t understand anything.



Tips for Choosing the Right Life Insurance for You


Compare Quotes and Policies. Make sure that you understand what each policy covers and that you get some comparisons on monthly premiums. Remember, not all premiums and cover are the same, ensure that you are comparing apples with apples.

Know Why You Need Life Insurance. You need to determine what your life insurance is going to cover. Think about the bills you currently have, do you have a mortgage, personal loan, credit card? Are you looking to cover your funeral costs and provide for your family? These are all things you need to consider when choosing the right life insurance cover.

If you are single, you’ll likely have minimal debt and you certainly won’t need to provide for anyone once you’re gone. But you might get married and have children further down the track, that’s when you would change the type of cover and the amount you have in place. The aim is to match your cover with your life stage.

What About Other Types of Cover? In most cases, life insurance isn’t the only thing you’ll need. Most insurance providers will provide some other options and if you choose to take these out as well, you can save on your monthly premium amount.

The types of cover that you could consider bundling with your life insurance include:

  • Trauma insurance – this provides a lump sum payment if you suffer from a medical condition that is covered under the policy terms. These could include cancer, heart attack or stroke.
  • TPD insurance – this is total permanent disability insurance and would provide a lump sum payment if you were to suffer from partial or total disablement and were unable to continue to work at your full capacity. Each insurance provider will have different definitions for disablement, so make sure you understand what is eligible to claim on.
  • Income protection insurance – this would provide an ongoing benefit of up to 75% of your income if you’re unable to work due to illness or injury. There are lots of different types of cover under this type of insurance, so make sure you’re clear on what the insurance company is providing.

Regularly Check Your Life Insurance Policy. You should check your cover on an annual basis to ensure that the cover you have in place is appropriate. Things can change and in some cases, you might need to reduce the amount of cover or increase it. Talking with your insurance broker annually is a good way to ensure that you always have the appropriate cover in place to match your life stage.


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