Life Insurance Providers in Australia
There are many different companies in Australia that provide life insurance, all of the companies offer slightly different products and some specialise in particular areas.
Primary Providers
These are the companies that only specialise in life insurance
Secondary Providers
These are the providers that offer life insurance as part of a whole suite of related banking or other products.
Life insurance companies are instrumental in providing protection for the way of life we have so carefully constructed for ourselves. However, just as carefully as we’ve worked to make the life we want for ourselves and our family, we are also constantly working to make sure that life stays in balance, which means making sure we earn enough money, we pay all our bills and we put some away for the future, or an emergency. That is why life insurance companies work hard to protect your lifestyle and your family, because you can’t plan and save for every emergency.
Social Safety Nets are Basic
If you are not insured , or are under insured, you can leave financial misery behind for your family if you should die or become incapacitated, and although most modern societies do have a system of basic care and welfare, however, it generally only allows people to live just above the poverty line, and this is a situation which no responsible breadwinner wants to leave their family in.
Life insurance companies are able to help make sure such an experience is not forced on your loved ones, business partners, or even your creditors following your loss. With adequate life insurance your plans can still be carried out even though you may not be around any longer to manage them yourself. The mortgage on the family home can be paid out, living standards can be maintained, debts can be repaid in full and your children can be guaranteed their full education. All this is important, but to ensure nothing goes wrong there is one more thing that must be guaranteed. The insurance company you choose must be able to deliver.
Be Wary of the ‘Fly-by-Nighters’
There was a time when the financial capability of life insurance companies were beyond doubt, it was never questioned, but with the proliferation of takeovers, new companies being started, the global financial crisis, and not to forget the high level of natural disasters in recent times, such financial soundness should not be taken for granted.
Although there remains no question of whether you need life insurance or not – you do! The question now is: can the life insurance company I choose, carry out its obligation to my beneficiaries, should I no longer be able to do so myself?
The best way of ensuring you choose the right life insurance company is by reading up on reviews of the companies and products, and fully understanding the structure of the life insurance companies you are interested in before making an educated decision. Some other points you should look for include:
- Excellent service to its customers (this is important for a company’s survival in today’s highly competitive environment where very little customer loyalty is shown).
- Easy access that enables all questions or concerns to be attended to in a timely manner.
- The policy to have terms and conditions that are easy to understand with no hidden small print.
- No costs involved that have not been mentioned up front.
It’s All About Risk Management
The financial soundness of all life insurance companies is built around risk management. The companies must be able to hedge funds against the amount of risk they carry. In its simplest form a life insurance company structure consists of:
- The insurer (the company itself). The seller of the cover.
- The insured (or policy holder). The buyer of the insurance.
- The insurance premium. The cost of cover representing the risk involved to the company.
The ensuing insurance agreement involves the insurer guaranteeing an amount of compensation to be paid to the beneficiaries of the insured should the policy holder die. In return the policy holder will pay the insurer a sum of money (the premium) each month throughout their life. The insurance company secures their risk by having a large number of policy holders, most of whom, under normal circumstances will not die within the prescribed time. Therefore when choosing the life insurance company you want to use to insure your own life, you should choose one that has a large number of policies outstanding, the more policy holders they have the lower the percentage of pay-outs they will experience and the more affordable cover will be.
Although the internet has brought many new companies into the life insurance market, many of whom may be a doubtful risk into the future, it has also made it possible for you to examine these institutions more thoroughly than ever before. As long as you are not overly influenced by chasing the lowest possible premium, although this is always an important consideration, you can find out much by examining a life insurance company’s structure, its size, its reviews and its longevity in the market, the risks it is exposed to and its ease of access. It is then up to you to make your decision but whatever you do decide, make sure that you don’t put your decision off unnecessarily as you never know what fate has in store for you.
What to Look for When Choosing a Life Insurance Company
Life Insurance Policies they Offer
With so many life insurance companies competeing for your business, it is essential to choose the company with the best range of products to meet your needs now and into the future. Consider your own situation and compare what they offer and at what price
Reputation and Position in the Market
Don’t be fooled by rogue life insurance companies with names that may suggest financial strength. Ensure they are a recognised financial institution with a listed address. Research the company history and company profile.
Financial Solidarity
When you consider the length of time that you will be dealing with your provider of choice, it is essential to find a company that will be financially stable for many years to come. One way to check this is by checking the companies financial strength rating. The last thing you want is for your company to face bankruptcy a few years into your insurance term.
Customer service
Finding the right life insurance policy is often a daunting task for many individuals. There is much to understand in terms of finding the best policy to match your lifestyle, income and family situation. Make sure that you find a company with a team of professional insurance advisors on hand to answer all of your questions from day one. A dedicated financial advisor goes a long way in helping you get the best coverage possible.
Claim Process
Ensure you find an insurer that takes the best line of action in the event of you needing to make a claim. Read up on customer reviews and look out for any complaints from previous customers on the insureres performance in providing coverage.
Cost
Don’t be fooled by the fine print when comparing premiums from different providers. Often a policy that may appear cheap at first will have hidden charges that will result in a much greater final payment. Compare policies based on your age, the policy structure and features and the ammount of coverage you are buying.