How To Buy Life Insurance and Peace of Mind

from ATB Wealth Strategies, Sydney

Buy Life Insurance Australia

To buy life insurance in Australia — obtaining quotes, organising coverage, and ensuring you and your loved ones are sufficiently protected can be a daunting task. However, it’s neither as invasive nor as complicated as you might anticipate.

At ATB Wealth Strategies, our team of specialist and friendly financial advisors will guide you through every step of the process meticulously and compassionately — understanding that discussing life insurance and inevitable demise can, for some people, be a challenging conversation.

However, as the great English philosopher, Thomas Hobbes said, scientia potentia est — knowledge is power. The more you know about the process, the more comfortable you will be in securing your partner’s and children’s future after you’ve gone.

If you’re simply intrigued about the process, or wish to make your own plans without our help, this guide on how to apply for life insurance will be an invaluable resource. But, if you would prefer direct assistance and guidance from experts in the field — speak to us today.

Speak to us today to guard yourself and your loved ones from the unexpected.

How to Apply for Life Insurance — 7 Simple Steps

Admittedly, obtaining life cover isn’t quite as effortless as organising car or pet insurance — but it’s still relatively straightforward. To explain how to purchase life insurance in the most logical way, we’ve organised the process into seven simple steps.

Step 1. Calculate the Level of Cover You Require

This is a crucial factor, as it dictates the value of the policy payable in the event of your death.

It’s important to consider who and how many dependents you wish to benefit (spouses/partners, children, elderly parents, etc.) and the amount of income they will need to meet liabilities, maintain their existing lifestyle, and ensure a comfortable future. Losing a loved one is traumatic enough — without them having to cope with additional financial stress.

Furthermore, it’s necessary to take into account any existing policies you may already own in a super fund, your current cash and fixed assets, and your debts and liabilities. Our Life Insurance — How Much Do I Need article explains the calculations in depth.

Bear in mind, that this isn’t just perhaps the most critical step in how to buy a life insurance policy — but also the most involved. We suggest you have a chat with our experts at ATB Wealth to ensure the most comprehensive and affordable policy.

Step 2. Type of Life Insurance Policy

All life insurance policies in Australia are term insurance — with whole life policies ceasing in 1992 with the introduction of mandatory superannuation by the Australian Federal Government.

This means that your proposed policy offers coverage for a set period of time — chosen by you when you apply for the insurance. Not only do you need to consider how long you want the cover to last, but also how you wish to pay your premiums and the amount payable upon your death — through decreasing life, stepped life, or level life systems.

Furthermore, there are certain additions you can include in your insurance — such as funeral expenses and terminal illness. Other types of policies can also incorporate total or permanent disability and trauma cover.

If you’re bewildered or just a little unsure about the policy types — and what they mean for you and your dependents — call us now and allow us to explain.

How to Apply for Life Insurance

Step 3. Organise Your Information

When obtaining a quote, and later, purchasing life cover — insurance companies will request specific personal information. You can wait until you begin the application process — or, be extremely organised and prepare the data in advance.

So, what do you need to get life insurance?

While there may be some slight differences in requirements from individual companies, usually either in the quotation or application process, you will be asked for:

  • Personal details — name, address, date of birth, etc.
  • Proof of ID.
  • Tax File Number (TFN).
  • Employment type.
  • Lifestyle information.
  • Personal and family medical history.
  • Assets and liabilities.
  • Details of your proposed beneficiaries.
  • Type of cover.
  • Proposed value of cover.

Step 4. Obtain Life Insurance Quotes

 When exploring how to buy life insurance, you’ll find that obtaining quotes can be the most time-consuming step. Not only do you have to search through an absolute multitude of providers — but also ensure that these insurers have a respectable reputation, reliable customer service, specialist experience, and provide the bespoke life cover package you desire.

Then, after selecting your chosen companies, you need to request a quotation from each.

Admittedly, most notable insurers offer an online price generator, allowing you to rapidly receive a life insurance quote online — although it still entails completing highly similar forms repetitively.

At ATB Wealth Strategies, we can remove this headache for you. We seek out the most compatible and reputable insurers that deliver the cover you need — and then, on your behalf, request quotes to find the most affordable and comprehensive solution.

Speak to us about Life Insurance today to guard yourself and your loved ones from the unexpected.

Step 5. Complete the Application

Once the quotes are received, it’s time to decide where to buy life insurance.

At ATB Wealth Strategies, we can assist you in this process, as it’s not as straightforward as opting for the cheapest quote. We work together with you through all the different policies, explaining the different nuances of each cover — and stressing any important inclusions or exclusions related to your needs.

Once you’ve chosen the most compatible insurer — you must then complete the application form. This includes personal information about yourself, a health declaration, and details on other life insurances you may already hold — data you should already have readily at hand from Step 3. Again, at ATB Wealth Strategies, we’re more than happy to help you with this stage.

After we have worked through all the suitable policies, they will be presented to you in a comprehensive ‘Statement of Advice’ or SOA. This ensures that both the policy and the amount of cover chosen are those best suited to your personal circumstances.

Just a word of warning…

Many people search Google for how to get cheap life insurance — be careful of the results you receive. Some unscrupulous sites discuss telling untruths — such as omitting medical conditions or underplaying a hazardous job — in order to obtain more affordable cover. This can rapidly backfire, voiding your insurance and providing no benefits to your loved ones upon your demise.

The only legitimate way to achieve the most suitable life insurance is by talking to us at ATB Wealth Strategies.

How to Buy Life Insurance
How to Buy a Life Insurance Policy

Step 6. Attend a Medical Examination

Although medical exams aren’t compulsory in Australia, some underwriters may request one be completed before cover is agreed — especially if you have a chronic or terminal condition.

While naturally, this protects the insurer’s interests — by alerting them to any existing life-threatening illnesses that may lead to an early payout — it also has benefits for you and your family.

By ensuring full awareness of health issues at the outset, it means that, should you perish from a condition not declared when taking the cover, the insurer cannot challenge any payable benefits — since not mentioning a preexisting condition may invalidate your insurance if you later need to make a claim.

Don’t worry — it’s not invasive!

It’s usually just a straightforward check-up, with a medical practitioner asking you some questions and performing a swift examination. Normally, you will undergo a few tests — detailing your blood pressure, height, and weight — and possibly be asked to provide saliva, urine, or blood samples. If you’re at all concerned about this stage, speak to us at ATB Wealth Strategies, and allow us to put your mind at rest.

Setp 7. Sit Back and Wait

You’ve now reached the final stage in how to get life insurance — and there’s nothing left for you to do, except wait!

The insurer’s underwriter will go through your application — and medical examination if completed — and determine whether you’re suitable for cover, and if so, the level of your premiums. As the information they’re looking at can be quite complex — this can take a few weeks.

Once approval is made, and you’re content with the price of the premiums, you will receive the policy papers to approve and sign. Traditionally, this was always in a physical paper format — but increasingly insurers are allowing digital signatures on the agreement.

After signing, you’re covered! We recommend that you inform your beneficiaries that you have taken out insurance — and/or locate a copy of the insurance agreement in a readily accessible location to allow easy access in the event of your demise.

How Can I Buy Life Insurance in Australia — Conclusion

How do I buy life insurance? Easy, by talking to us at ATB Wealth Strategies!

We can lead you effortlessly through every step of the process — from the initial calculation of your policy requirements to assisting you with the application process.

Bear in mind, that life insurance underwriting is complex, nuanced, and varied — making the wrong decisions regarding cover can hike up your premiums and run the risk of adversely affecting beneficiaries should a claim be made.

Have an informal chat with us at ATB Wealth Strategies — and get your life insurance quotes today.

Don’t leave it until it’s too late, call us at ATB Wealth Strategies now.