Need a Mortgage Broker for Life Insurance?

Most Australians understand the importance of taking out insurance, and the first type of insurance that springs to mind is Life Insurance.

Put simply, a Life Insurance policy pays a specified amount of money to the insured’s beneficiaries or estate as long as the insured passes away while their policy is still current. In exchange for the Life Insurance Policy, you must pay monthly or yearly premiums to the insurance company.

Most standard Life Insurance Policies expire at the age of 99; however, each life insurance company may have slightly different definitions.

Please call First Choice Mortgage Brokers to discuss your Life Insurance opportunities and for any assistance in accessing the Life Insurance application process.

How Much Life Insurance Should I Take Out?

Determining how much life insurance you need is important as this is the amount that will enable your beneficiaries to live a lifestyle comparable to now after you pass away. It’s is the amount paid upon your death and is decided when the policy is taken out.

An easy calculation is to base the policy on 10 times your annual salary or, depending on your financial situation, at least the total amount of your liabilities. Talk to us, and we’ll be more than happy to assess your current financial situation in order to determine the appropriate amount of Life cover for you, taking into consideration:

  • Debts – mortgage, credit cards, loans.
  • Expenses – daily living expenses and future expenses like education for your children.
  • Ongoing income needs of your family.

The question you need to ask yourself is: ‘If you failed to take out a Life Insurance Policy or failed to take out a Life Insurance Policy for the appropriate amount, would your family be able to financially cope if you weren’t there?

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Life Insurance FAQs

At What Age Should You Buy Life Insurance?

As one would expect, the younger and healthier you are, the less expensive a life insurance policy is. Typically, the lowest prices are obtained when a person is in their twenties or thirties, as the insurer is taking less risk by insuring a healthy young person who is likely to live for many decades.

Although regardless of your age, if you have people who depend on you, it’s important to ensure your family will be taken care of if you are no longer around. In fact, studies show most people buy life insurance after life-changing events such as marriage, new babies, unexpected illnesses or grief.

As life insurance premiums become more costly when you get older, it’s important not to put off purchasing life insurance coverage. The longer you wait, the more expensive it will become. Having said this, life insurance coverage that is both inexpensive and of good quality is accessible for people of all ages.

How Much Does Life Insurance Cost in Australia?

As a general industry standard, in Australia, a fit 40-year-old should expect to spend about $4.40 per week for a $250,000 life insurance policy. It’s even less expensive for women, who may expect to spend just $2.80 a week for the same amount of coverage.

Although life insurance varies dramatically from person to person, depending on certain circumstances.

Can I Get an Advance Payment of My Life Insurance Benefit?

Yes. You can claim your total benefit amount if you are diagnosed with a terminal illness and have less than 12 months to live.

Do I Need to Have a Medical Examination to Get Life Insurance?

Depending on the insurer and personal factors such as your age, height to weight ratio, and previous medical history will affect if you have to get a medical examination to get life insurance.

What is Not Covered by Life Insurance?

While generally, life insurance covers death due to natural causes and accidents, there are certain circumstance which could prevent your insurance payout including:

  • Risky activities like scuba diving, base jumping, hang gliding, auto racing, aviation, rock and mountain climbing.
  • If the beneficiary murders you or is somehow tied to your murder, they will not receive the benefit. Instead, the contingent beneficiaries will receive it.
  • Most life insurance policies have a “suicide clause”—or contestability period—during the policy’s first two years. Life insurance policies won’t cover a suicide that occurs during this period.
  • If you lie on your application.
  • If you do not name a beneficiary on your application.

Speak to a Mortgage Broker

You can make an appointment with a First Choice Mortgage Broker consultants by calling 1800 111 455.

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