At ATB Wealth Strategies, we are different.
Across all our financial planning services, we understand that your monetary peace of mind comes not only from having a solid, strategic, and robust wealth management plan in place — but also from possessing a thorough grasp of where your premiums are going, what the provider does with your hard-earned Australian dollars, and what happens should you need to make a claim.
So, in that spirit, what is life insurance, and how does it work?
If you want advice on life insurance, speak to our financial planners at ATB Wealth Strategies now.
How Does Life Insurance Work? The Basic Principles
In many ways, life insurance is no different from most other safeguarding policies.
You formulate a contractual agreement with an insurer — where you undertake to pay regular premiums, and they promise to recompense you, or your named beneficiaries, should a seriously unfortunate event covered under the policies occur.
Depending upon the policy, tailored by ATB Wealth to your needs, this payout can occur in the event of death, terminal illness, and total permanent disability (TPD).
For an in-depth guide to our life insurance services — and we can work with you to create a beneficial and reassuring strategy — check out our ultimate life insurance guide.
Don’t put it off till tomorrow — you never know what can happen, speak to one of our financial experts today.
How Does Life Insurance Work — The Cost to You
One of the most common questions we’re asked when looking at how life insurance works, is how much will it cost.
At ATB Wealth Strategies, our experienced team of financial planning specialists diligently source for you the most affordable and suitable life insurance — ensuring that you receive the comprehensive protection you want and need, and aren’t paying for superfluous or irrelevant cover.
Typically, the cost of specific life insurance depends on the following factors:
As insurance companies don’t want to be in a loss-making situation, the cost of premiums, therefore, increases when you organise insurance at more mature years.
The premium is assessed on your current medical condition. Hence, it’s advisable to obtain life insurance before the lessening of fitness, and the medical conditions that come as part of the ageing process, occur.
Invest in life insurance as early as possible — the younger you are, the more you can enjoy long-term affordable payments.
Australians who enjoy skydiving, free climbing, and kiteboarding may pay a supplement on their premium to reflect the inherent risks — something that isn’t as relevant to stamp collectors and greetings card crafters.
Length of Life Insurance
The cost of term life insurance — where the cover lasts for a set amount of time, typically ten, twenty, or 30 years — is influenced by the length of the policy. Furthermore, additions and exclusions to the cover will also affect your premiums.
Insurance is renewed every year and therefore can be cancelled at any time — although many policies will stop at the age of 65 years. Be aware, if you terminate the policy, and then reapply at a later date, you may have to take another medical. This will generally result in higher premiums.
That’s why, at ATB Wealth Strategies, it’s our mission to ensure that you receive the cover you need, not what you don’t — ensuring the most cost-effective safeguarding.
Value of Death Benefit
The final factor that can determine the price of your life insurance is the value of the benefit to be paid in the event of your unfortunate demise.
For example, if you only needed $250,000 for your beneficiary’s immediate expenses, you can expect to pay less than another person who is looking for $2,000,0000 to cover their children’s education, mortgage payments, and spouse’s day-to-day living costs.
To learn more about how does a life insurance policy work out premium costs, contact us now for a chat.
How Does Life Insurance Become Affected If I Tell Untruths?
While this may deliver more affordable premiums in the short term, eventually it could create significant issues. If you tell untruths regarding your employment, lifestyle, or health status — you run the high risk of the policy becoming void or failing to payout in the event of a claim.
Meaning that not only have your premium payments been wasted — but also leaving loved ones without any benefits. Just tell the truth!
That said, even with serious medical problems or hazardous employment, the price of cover can often be much more affordable than you’d anticipate. Speak to us today regarding your personal situation — and allow us to formulate a cost-effective life insurance plan.
How Does Life Insurance Payout?
For many people, the answer to the question of how does life insurance payout work is crucial. If you’ve sensibly taken out cover, you want to ensure that your chosen beneficiaries can effortlessly receive their entitlements — as you’re not around to monitor the process.
Reassuringly, it’s simple — and follows three straightforward steps:
- Notify the insurer — provide the policy number, death certificate/deceased’s GP details, and the proposed beneficiaries’ relationship to the demised.
- Assessment — the insurer typically provides a form for the prospective beneficiaries to complete, allowing the underwriters to ensure the validity of the claim.
- Payout — usually made to the deceased’s representative, next-of-kin, trustee, or will executor.By all means, have a chat with us at ATB Wealth Strategies, and allow us to put your mind at rest regarding the smooth processing and payment process.
By all means, have a chat with us at ATB Wealth Strategies, and allow us to put your mind at rest regarding the smooth processing and payment process.
Life Insurance From ATB Wealth Strategies, Sydney
At ATB Wealth Strategies, we offer compassionate, professional, and targeted life insurance options to meet your specific needs. Working together, we can formulate a comprehensive and affordable plan for the ultimate peace of mind.
Remember, life insurance isn’t just about planning for your financial dependents in the event of your demise — it can also benefit you during your lifetime with terminal illness protection. Other types of policies can also incorporate total or permanent disability, and trauma cover.
Be careful. The life insurance industry isn’t a level playing field — the underwriting is varied, complex, and can adversely affect you or your beneficiaries at the time of a claim. We provide a robust guarantee when formulating your plan — outlining exactly what you will receive if there is a claim, and not leaving you or your beneficiaries disappointed if the policy fails to payout adequately.