Policies for Life Insurance for $1,000,000 of Coverage for Men and Women
- Most insurers usually offer buyers life insurance plans worth $1,000,000 when they are browsing for policies. There are various reasons why insurers offer policies with such a high value to buyers; however the actual question is do you need a policy with such a high value? Before answering this question it is important to understand the purpose of life insurance plans.
- Life insurance plans are meant to help you protect your family from financial troubles when you have departed and are no longer there to take care of them. Life insurance claims can be filed by beneficiaries or your solicitor and upon the acceptance of the claim, the insurer will pay a lump sum payment to your beneficiaries. Life insurance policies allow the policy holder to choose his beneficiaries, choose how much money goes to each beneficiary and do a lot more. Life insurance claims can only be filed when the policy holder has passed away due to an accident, natural causes and health conditions. A claim will be accepted if the policy is active, all premiums have been made by the policy holder and if all medical conditions have been declared to the insurer.
- A few insurers in Australia may give the family of the policy holder an option to get an advance on the life insurance claim for funeral costs. Some insurers may also offer cheap funeral insurance plans if they do not offer a life insurance advance payment for funeral costs.
- A 30 year old man who doesn’t smoke and has no pre – existing health conditions can expect to pay monthly premiums of $45 – $55 for a 1,000,000 life insurance policy. A 30 year old woman who doesn’t smoke and has no pre-existing health conditions can expect to pay monthly premiums of $35 – $45 for a 1,000,000 life insurance policy.
What to Look for in a Policy?
- The policy you choose should have a long term if you are between 20 – 40 years old. The policy you choose should have a high cover limit that will allow your family to live well even after you are gone. The policy you choose should have a short waiting period or a medium cooling off. Ideally the policy you purchase should have a waiting period of 21 – 28 days. Some policies may have an additional
- The ideal cover limit will depend on your lifestyle, your family’s lifestyle, your assets, your liabilities and your budget. While you may not need a policy worth $1,000,000 if you have just started earning and are new in your job; you should consider taking a high value policy once you have settled down and have a family. A policy worth $1,000,000 is ideal for people who earn a significant amount every year and have a lifestyle that matches their earnings.
- Insurers in Australia offer two types of premiums and when you purchase a policy you can decide if you want to pay a fixed amount for the term of the policy or if you want to start paying low premiums first and then pay high premiums as you grow older.