Having a baby can bring the gaps in your financial plan into sharp focus. New parents often feel they need to find ways to provide financial security to their growing families, including buying life insurance. With so many to-dos competing for your attention and money, buying life insurance can fall to the bottom of the list.
When you’re ready to put this puzzle piece into place in your financial plan, here are the top things to know as you get started.
There’s Never a Better Time to Apply Than Now
When you know you need life insurance, there’s a significant financial advantage to taking it out it as soon as possible. That’s because you won’t likely get a better price in the future, and locking in your rate now will pay off over the years. Life insurance quotes will go up every year you wait to buy.
And new health conditions in the future will add cost that you’ll pay over the duration of the policy.
You May Be Able to Get a Large Amount of Life Insurance Without Taking a Medical Exam
The older you get and the more health conditions you develop, the more likely you are to be required to have a life insurance medical exam. So if you apply for life insurance when you're young and healthy, it's likely there won't be a need for a medical exam. You'll have to answer medical questions, but may not need to get an exam.
There’s also an opportunity to get higher amounts of coverage ($2 million and higher) without an exam.
It May Cost Less Than You Think
Studies have shown that consumers often overestimate the cost of life insurance. The only way you’ll know how much you’ll pay is to get quotes.
Life insurance quotes are typically based on age, gender, health conditions, family health history and any dangerous hobbies (such as scuba diving) or occupations, so each quote is highly individual.
Don’t Go It Alone
If one of the things holding you back from taking out life insurance is not knowing where to start, you should enlist help—whether you feel lost about the process or are confident in your coverage decisions.
An experienced, qualified independent insurance advisor should seek insurance solutions via a variety of insurance companies to find the best insurance to suit your individual needs and objectives.
At Super Sure we deal with most of the major insurance companies and will check them all out and then make recommendations based on your needs. We're a mobile service and will come to you and a time and place convenient to you. And we're there for the long haul - we'll be there to support you as your circumstances and milestones change to review your insurance protection and most importantly, we'll be there at claim time to support you through the process at what might be a stressful time. We've got your back!
If the Cost Is Too High, Take Out What You Can
The free life insurance calculators available online can help you pinpoint how much life insurance you need. But your insurance adviser is the best way to determine the cover you need.
If you price it out and the cost doesn’t fit your current budget, don’t abandon the mission. Instead, your insurance adviser will help you to prioritise your cover so you can take what you can afford now, with the plan to apply for additional coverage in the future. Having some life insurance locked in is better than having none.
Super Sure offer free, annual insurance reviews.
Don’t Rely on the Life Insurance Through Work
Workplace life insurance is easy to get and affordable, sometimes even free to the employee, but it’s best thought of as supplemental life insurance to a policy you take out on your own.
Why? The group life insurance available through work ends when you leave the job. It’s also typically only available for small amounts, such as one or two times your annual salary. That may not go very far in helping your family pay expenses for many years if you unexpectedly pass away.
It’s better to have your own individual policy in a coverage amount that’s sufficient for your needs.