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Common questions and answers about life insurance


In order to live your life with the security and peace of mind you deserve, having a life insurance policy in place is crucial. Whether you're taking out life insurance in Airlie Beach, Proserpine or Bowen, you'll want to be sufficiently up to speed with the basics of it. 

What is life insurance?

Life insurance works much like cover for your home, car or other belongings. You enter into a contract with an insurer, whereby you pay them a monthly premium. In return, if something should happen to you, they will step in to provide you with the financial assistance you need to live. 

What does life insurance comprise?

Life insurance actually refers to several different kinds of cover, one or all of which may be necessary, depending on your circumstances. Life cover will pay out a set sum of money to the people chosen as beneficiaries by the insured, if the latter should pass away. Meanwhile, income protection covers you financially in case you can no longer work due to a medical problem or physical injury by providing regular monthly cash payments to replace wages.

There is also total and permanent disability cover and trauma insurance, which cover various costs associated with major illnesses, injuries and disability. 

From where can I get life insurance?

There are several different sources from where you can get life cover. Most superannuation funds offer basic cover, which can be more affordable than purchasing it separately, and your employer's default super fund has to offer you a minimum level of cover. However, you can also get insurance through an insurance company, a bank or a financial planner, if the cover offered by your super fund is not enough for your personal situation. A financial planner can help determine how much cover you need and which insurance company's policy offers the best value for your requirements.  

How much insurance do I need?

The level of life cover you require all depends on your regular expenses, the number of your dependents, your assets, your debts and your level of comfort. In order to successfully calculate it, you'll need to take into account how much you pay for your mortgage, credit card debts, education costs, groceries and various insurance costs. Your financial situation is also a determinant – more insurance will give you greater security, but it will also take more money out of your pocket every month. 

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