life insurance

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How to Choose the Cheapest Life Insurance in Australia (2019)

We get it – you want to choose the cheapest life insurance without compromising on quality. After all, life insurance is 1 of 4 insurance types everyone should have. But that shouldn’t mean spending buckets of money.It’s possible to find great life insurance at a good price. And we’re going to show you how.

10 Tips on Finding the Cheapest Life Insurance

Here are the 10 best tips we’d like to share with you.Not sure what some of the words we use mean? Check out our guide on Understanding Insurance and learn them all!

1. Apply as Young as Possible

Life insurance companies think about 2 things when deciding on how much to charge you. First, they look at how old you are. Then, they consider your mobility.What that means is the older you are when applying, the higher your premiums will be. And the healthier you are, the lower they’ll be. So it’s a very good idea to apply as young as possible to get the cheapest life insurance.

2. Compare Different Providers for the Cheapest Life Insurance

You probably know by now that there are lots of insurance companies in Australia. But instead of jumping at the first one that looks good, you should compare them properly. This is very important because sometimes companies charge 150% more than others do.

3. Choose Level Premiums Instead of Stepped Premiums

There are 2 types of premiums: level and stepped. If you only need life insurance short-term, then stepped premiums are better. But if you’re looking for the cheapest life insurance-long-term, you should choose level premiums.

4. Don’t Smoke if You Want the Cheapest Life Insurance

Did you know that smokers can pay up to 50% more than non-smokers? Even if you were a smoker and you quit, you can get cheaper premiums!

5. Live Healthy and Get Discounted Premiums

This is relatively new for life insurance, but you can get up to a 20% discount on your premiums. All you need to do is live a healthy lifestyle!

6. Choose Yearly Premiums for the Cheapest Insurance

Providers sometimes charge 5% to 8% more if you pay monthly. That means you save money by choosing yearly premiums instead.

7. 15% Tax Credit

You can also get a 15% tax credit by funding a retail policy with your super fund.

8. Discounts on Multiple Policies

It’s great if you’re looking for the cheapest life insurance for you and your partner. That’s because when you open more than 1 policy at the same time, you can both get a 10% discount!

9. Special Discounts

Remember we said you should have at least 4 types of insurance? If you can open them all using the same policy, you’ll get special discounts.

10. Skip the Policy Fees

Some providers don’t charge any policy fees anymore, and no policy fees mean cheaper premiums. Clearview Life Solutions and MLC Insurance are 2 examples.

Stop and Think Before Committing to the Cheapest Life Insurance

Cheap is cheap – and the cheapest life insurance isn’t the best option. Even though you are trying to save money, you don’t want to end up with poor insurance cover.Remember point 2 above? Comparing different options will help you get the best possible policy instead of just the cheapest. It might mean spending a little bit more, but it will be worth it. And it won’t have to cost a lot more!So here are 5 more tips to help you get the best option.

1. What Are Your Insurance Needs?

If you’re opening a life insurance policy – or any other type of insurance – it’s always a smart move to think about what you really need. After all, you don’t want inadequate cover! So pay careful attention to what benefits the policy includes and excludes. This will also help you save money by helping you make sure you don’t pay for benefits you don’t need.

2. What Do the Company’s Finances Look Like?

You’re looking for the cheapest life insurance that will actually pay. So it’s a good idea to spend some time researching the company’s financial history. And an easy way to do that is to read reviews.What you’re looking for is information on how likely they are to pay out claims. If the company has a reputation of taking forever to pay, then their financials are likely to be shaky. And that’s not a company you want to open a policy with.

3. Keep Reading Those Reviews on the Cheapest Life Insurance

Another thing review will tell you is what their customer service is like. Getting cheaper insurance shouldn’t mean having to sit through a terrible experience every time you need to file a claim. So keep an eye out for good and bad reviews.

4. Think About Everyone, Not Just Yourself, When Looking for the Cheapest Life Insurance

Obviously, you’re the one getting the life insurance. But that doesn’t mean you shouldn’t be thinking about the rest of your family as well.Instead, you need to think about how your life insurance affects them. For example, if something happens to you, how will the company treat your family?

5. Keep Asking Questions

Okay, so you’ve narrowed your options down to one or two of the cheapest life insurance policies. So you’re ready to apply online now, right?Before you do, get into contact with their support staff and ask questions. Don’t be shy – ask about anything and everything you’re not sure of yet. Because the better you understand their policies, the better you’ll be able to make your final choice.