There are many types of insurance popular in Australia today, including medical insurance, travel insurance, personal accident insurance, vehicle insurance, property insurance, liability insurance, business insurance, and the list goes on. In comparison with these types of insurance, life insurance mainly benefits people who are financial dependent to you.
Other insurance types are usually purchased by an individual in order to serve as a safety net when he or she gets into a specific life scenario that would require money. However, when it comes to life insurance, it is a different story. In case the person who bought life insurance passes away, that insurance company will provide for that person’s financial dependents.
Popular Types of Over 50s Life Insurance in Australia
Term life insurance for over 50s shares the same concept and model with other forms of insurance. Basically, the person who has term life insurance has an annual premium, and as long as he or she is paying for it, he or she has life insurance coverage. Sharing the same model with other forms of insurance, no cash value is associated or attached to term type of life insurance.
Because of the set-up of term life insurance, it is a good choice for people who prefer insurance for temporary needs, such as children’s education expenses, or providing for mortgage or other financial obligations. As it is, when the reason why you applied for over 50s life insurance is completed (e.g. your children have already finished education), then you can cancel your insurance.
Unlike term life insurance, cash value type a portion of the premium of the individual pays goes to cover the cost of insurance. Additionally, a portion of the premium goes to a savings account. There are different types of cash value insurance, including but not limited to whole life insurance, variable universal life insurance, and universal life insurance.
You should take note that each type of cash value life insurance follows a different guidelines and policies. In contrast with term life insurance, cash value insurance is best for permanent or long-term needs. This type of life insurance will pay out when you pass away. It is also the practical choice if you want your money to grow with dealing with tax.
Getting to Know the Benefits of Life Insurance
As mentioned above, life insurance benefits the person or people who are financially dependents of the individual who bought it in case he or she passes away. Hence, it is important for those who are planning to buy life insurance to factor in the people who are financially dependent to him or her.
If you believe that the people you love, your children, spouse, or siblings, will have a harder time financially when you pass away, investing on life insurance is definitely ideal. Basically, life insurance will answer your question on how your financial dependents will do in case you pass away.
While some of the basics are covered, it is highly recommended to do more in-depth research about the topic. You may want to search the web for more details about term and cash value insurance, or better, talk with an insurance agent or advisor to know more. Your insurance professional will help you determine the best type of insurance for you by considering your health, your current financial status, and the financial status of your dependents.
