Life insurance policies are offered to buyers of all ages and these policies ensure that the policy holder’s family does not suffer financially when the policy holder is no longer with them. There are many insurance companies in Australia that offer this type of insurance and buyers always have a choice which company or plan they want to opt for.
Life cover plans that are offered in Australia are term insurance plans that are offered for a selected period of time. Buyers have the option to select if they want to opt for a plan for a few months, a few years or up till they are 99 years. The type of plan selected will have a direct effect on the cost of the policy and the benefits offered by the insurance company.
People who opt for these plans also have the option to choose between three types of premium payment plans. Levelled premiums are beneficial to people who want to get short term policies and enjoy low premium rates for the first few months. Stepped premiums are ideal for people who are interested in buying long term plans and want to pay a fixed amount for every premium. Blended premiums are ideal for people who want to enjoy the benefits of both levelled and stepped premiums.
Life cover plans do not cost as much as trauma insurance plans and other specialized insurance policies however the cost of the selected life cover plan depends on a few factors. The age of the buyer and the gender play an important role in determining the cost of the policy however, the smoking status of the buyer is the main deciding factor.
Another important factor is the number and type of pre existing conditions the buyer has. As a general rule, buyers who have many pre existing conditions, buyers who smoke and are above 50 years will be charged a higher premium. Buyers should note that insurance companies that do not ask many questions or ask the buyer to take 1 or more blood tests usually charge a higher premium compared to insurance companies that ask buyers to fill out questionaries and take medical tests prior to getting insurance.
It is important to note that blended premiums are not offered by all the insurance companies in Australia. Buyers should remember that before they can enjoy the benefits of the selected life insurance policy, they will have to wait for a certain number of days and this period is known as the cooling period. Better plans allow buyers to choose the cooling period where as cheaper policies do not give this option.