Options for Buying Insurance
Direct insurance means just that: purchasing life insurance directly from an insurance company or through a distributor, over the phone, online, through the mail or in person.
When you speak to an insurer direct, they will tell you whether they are providing you with general information about a policy or personal advice tailored to you.
Many people use a financial adviser or financial planner to arrange life insurance. An adviser providing personal advice has a legal duty to act in your best interests and can help you find what’s best based on your particular circumstances.
An adviser can tell you what information you need to provide, and will research, identify and recommend suitable policies to you and clearly explain the advantages and disadvantages of different policies.
This method can be useful to those who want help finding the type and amount of insurance cover that will suit their circumstances.
Superannuation funds usually arrange an automatic amount of life insurance cover for their members without you having to provide information about your health or financial situation.
Contact your fund to check whether you have insurance cover and how much, and consider if that amount covers your needs. If not, it may mean that you need to ‘top up’ your cover to the amount you require.
If you have life insurance cover through your superannuation, the superannuation fund trustee owns the policy. You are a beneficiary of the policy and can claim benefits if you suffer an event covered by the policy.
Some employers offer life insurance to their employees as an employment benefit. Much like insurance through super, the employer owns the policy and you are a beneficiary who can claim benefits if you suffer an event covered by the policy.